EBRD, AfDB, and BII back Egypt in building solar and battery storage plant - Trade Treasury Payments

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EBRD, AfDB, and BII back Egypt in building solar and battery storage plant

Egypt’s has launched its first integrated solar photovoltaic (PV) and battery energy storage system (BESS), backed by $479.1 million in financing from three major development finance institutions.

The European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII) have committed funding to support the 1.1 GW solar facility and 200 MWh BESS in the Nagaa Hammadi region. The project will be developed by Scatec ASA via Obelisk Solar Power SAE, a special-purpose vehicle fully owned by the Norwegian renewables firm.

The facility will be built in two phases, with the first phase (561 MW solar and 100 MW/200 MWh BESS) expected to begin operations in early 2026. The second phase (564 MW solar) is due online later that year. Power generated will be sold under a 25-year, dollar-denominated power purchase agreement with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.

The EBRD’s financing includes a $173.5 million loan, a portion of which benefits from a first-loss guarantee under the European Fund for Sustainable Development (EFSD+), along with a $6.5 million grant. The AfDB will provide $184.1 million via a blend of its own resources and dedicated climate funds, including contributions from the Canadian government. BII will supply a $100 million concessional loan and a $15 million returnable grant, designed to improve the financial viability of the battery component and draw in private capital.

In total, the financing covers approximately 80 percent of the project’s $590 million capital cost.

The plant is projected to generate around 3,000 GWh of clean electricity annually, reducing CO₂ emissions by up to 1.4 million metric tonnes per year. The system’s dispatchable profile will help meet peak demand and improve grid resilience, contributing to Egypt’s goal of sourcing 42 percent of its electricity from renewables by 2030.

This investment marks a flagship project under Egypt’s Nexus of Water, Food and Energy (NWFE) platform. The project is positioned as a template for future hybrid developments across the region.