$566M financing advances 1.2 GW solar and battery project in Egypt

A major solar and battery energy storage project in Upper Egypt has lined up a debt financing package of up to $566 million, moving one of Africa's largest renewable energy developments closer to construction.

The Nefer Minya project is being developed in Minya Governorate, around 245 km south of Cairo, and will combine approximately 1.2 GWp of solar photovoltaic capacity with a 600 MWh battery energy storage system. The European Bank for Reconstruction and Development's project disclosure puts the plant's grid-connected capacity at 1,000 MW (AC), reflecting the difference between installed module capacity and the output delivered to the grid.

The project company, Nefer Menya for Renewable Energy S.A.E., is 51% owned by Infinity Power and 49% by HAU Energy, the renewable energy investment vehicle of Hassan Allam Utilities.

The European Bank for Reconstruction and Development (EBRD) is arranging up to $265 million of the financing. This comprises a $160 million loan from its own funds, a $75 million loan from Bank of Jordan, and up to $30 million in concessional financing from the Climate Investment Funds' Clean Technology Fund under its Global Energy Storage Program. Germany's DEG, the Dutch development bank FMO and France's Proparco are co-financing the project as part of the wider debt package.

The total project cost is put at approximately $764 million.

The battery storage system is central to the design. Rather than exporting all solar generation to the grid during daylight hours, the 600 MWh system will store part of the output and release it during peak demand after sunset. This should help close the gap between daytime solar generation and evening electricity consumption while improving grid stability.

The EBRD has said the facility is set to become the largest solar power plant in Egypt and Africa, and it is among the country's first projects to pair large-scale solar with battery storage. It forms part of Egypt's wider effort to increase renewable generation while managing rising peak electricity demand.

Electricity from the plant will be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement. The project is expected to supply enough electricity for more than 1.4 million homes and to avoid more than 1.5 million tonnes of carbon dioxide emissions a year.

The project also supports Egypt's target of generating at least 42% of its electricity from renewable sources by 2030, rising to more than 60% by 2040. The government plans to meet these targets through investment in solar, wind, hydropower and green hydrogen.

Large-scale storage is becoming increasingly important as more variable renewable generation connects to the network. Egypt already operates an extensive high-voltage transmission system, including more than 8,250 km of 500 kV lines, and pairing major photovoltaic plants with battery storage can help smooth output and provide additional flexibility during demand peaks.

Once complete, the project is also expected to support Egypt's ongoing expansion of its power interconnections with neighbouring countries and Europe, including links to Jordan, Sudan, Libya, Saudi Arabia, Greece and Italy.

Completion is targeted for September 2027. Once operational, the facility will mark a significant step in Egypt's shift from stand-alone utility-scale solar towards integrated renewable generation and storage, in which electricity production and grid management are increasingly designed as a single system.