As part of its efforts to expand renewable energy in Egypt, the European Bank for Reconstruction and Development (EBRD) announced the contribution of a new tranche of financing worth $5.5 million to TAQA Arabia’s solar energy project in El Minya, the EBRD said in a statement.
This agreement was done on the sidelines of COP 27 in Sharm El Sheikh, Egypt.
The project is being established by TAQA PV for Solar Energy, which is TAQA Arabia’s renewable energy subsidiary, and targets to produce 7 megawatts. This new funding comprises a $4.95 million loan from the EBRD and a $550,000 concessional loan from the Global Environment Facility (GEF), according to the EBRD.
EBRD said that the project will sell all of its electrical output to ASCOM Carbonate and Chemical Manufacturing (ACCM) under a 25-year power purchase agreement.
Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, said: “We are very proud to be extending our partnership with TAQA Arabia to scale up private renewable energy capacity in Egypt. Supporting the growing private-to-private segment of renewable energy is critical to accelerate the decarbonization of the economy and foster green supply chains in Egypt and across the African continent.”
Pakinam Kafafi, CEO of TAQA Arabia, said: “This project confirms TAQA Arabia’s ability to provide the latest sustainable solutions to a large base of private-sector companies, such as ACCM. The new plant will contribute to ACCM’s efforts to maximize the opportunities of using renewable energy resources, reducing its total annual electric power consumption by 16%. It gives us great pride to extend our partnership with the EBRD, a development finance institution that focuses on promoting private-to-private, green, sustainable energy projects aimed at developing society and providing a better quality of life.”
It should be noted that the EBRD has invested more than EUR 10.3 billion in 154 projects in Egypt. The bank’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects in areas such as the power sector, municipal water and wastewater services, and transport.