Arab Finance: The European Bank for Reconstruction and Development (EBRD) will provide a senior debt financing of up to $70 million for a renewable energy project in Egypt that includes a 200-megawatt (MV) solar plant and a 120-megawatt-hour battery energy storage system, according to a project summary.

The financing will go to Nefer Benban for Renewable Energy, a special purpose vehicle (SPV) established to develop, construct, and operate the project in Benban near Aswan in southern Egypt.

The project will add 200 MW of solar generation capacity and 120 MWh of battery storage to Egypt’s power grid, supporting the government’s renewable energy targets and the country’s broader shift toward low-carbon energy sources.

The project is among the first batch of battery energy storage system (BESS) projects being developed under the 10-gigawatt renewable energy target included in the energy pillar of Egypt’s Nexus of Water, Food and Energy (NWFE) program.

The EBRD said the project is expected to help reduce carbon dioxide emissions by up to 280,000 tons annually once operational. The total cost of the project is estimated at $175 million and will be co-financed by other parties.

The project will also support workforce development through two nationally accredited technical training programmes focused on green skills for young people in Aswan.

Nefer Benban is owned 51% by Infinity Power Holding and 49% by HAU Energy. Infinity Power Holding is a joint venture between Abu Dhabi Future Energy Company Masdar, which owns 49%, and Egypt’s Infinity Energy, which owns 51%. 

In April, EBRD extended a $65 million construction bridging loan to HAU Energy to support the development of a renewable energy project in Benban.