Mon, 04 Oct 2021 - 02:23 GMT
Mon, 04 Oct 2021 - 02:23 GMT
CAIRO – 4 October 2021: The European Bank for Reconstruction and Development (EBRD) reviewed Monday its effort in supporting the solar energy sector in several countries including Egypt.
The EBRD clarified that it has supported numerous businesses and countries in their solar endeavors.
“The Bank’s clients are at the forefront of the renewables revolution,” it noted.
Regarding Egypt, The EBRD described Benban solar project as one of its flagship projects, describing it as the largest solar park in Africa and one of the largest in the world.
“It extends over 37 km2 and will generate 1.5 GW, enough to provide renewable energy to more than 1,000,000 homes,” it stated.
According to the EBRD, the bank is proud to be the main financier of this park, having supported 16 of the 32 plots. The project is supported by the Green Climate Fund (GCF), the EU and donors to the Southern and Eastern Mediterranean Multi-Donor Account (SEMED MDA) (Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Sweden, Spain, Taipei China and the United Kingdom).
In Benban, the EBRD has also led the way in providing finance to roll out innovative bifacial panels, a product that is more efficient and achieves greater productivity in the generation of solar power, the announced statement revealed.
It also noted that Benban is not the only example from Egypt, as the EBRD, the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the GCF and the Arab Bank worked with ACWA Power for the construction of the Kom Ombo solar plant, the largest private solar facility in the country.
The development of this plant will add 200 MW of energy capacity, increasing the percentage of renewable energy in Egypt’s energy mix and further promoting private-sector participation in the Egyptian power sector, according to the EBRD.
The EBRD has also supported the country’s first private-to-private purchase agreement for solar photovoltaic power. With the help of the Bank’s Green Economy Financing Facility (GEFF) in Egypt, which is supported by the EU, SolarizEgypt’s first impactful project materialized when the company received assistance in the installation of a rooftop PV system for the Coca-Cola Company.
The GEFF’s support provided SolarizEgypt with the opportunity to receive finance from QNB Alahli Bank, one of GEFF’s partner banks. Although the 1 MW PV system is installed at the Coca-Cola Company’s facility in Sadat City, SolarizEgypt retains ownership of the solar facility and sells the electricity produced to power the factory, so all parties benefit.
The success of this project paved the way for the market to replicate this new model and stimulated the partner bank’s appetite for financing similar projects with other clients.
The ongoing cooperation portfolio between Egypt and the EBRD amounts to €4.4 billion, financing 106 projects; 58% of the ongoing projects are dedicated to the private sector and 42% goes to the public sector. The bank’s total investments since 2012 have amounted to over €7.2 billion financing 127 projects.
Egypt ranked first as the EBRD’s largest country of operations in the Southern and Eastern Mediterranean (SEMED) region in 2020 as the bank invested over €1 billion to finance 21 projects, representing 47% of the total investments in the region in 2018 and 2019.