Three development banks are backing Egypt’s first large-scale solar and battery project with $479 million in loans. The African Development Bank, European Bank for Reconstruction and Development, and British International Investment will fund a 1 GW solar plant paired with battery storage in the Nagaa Hammadi region, according to a AfDB press release.
Egypt wants 42% of its electricity to come from renewables by 2030 (current figure – 11-12%). This project will help reach that goal while testing new ways to store solar energy for use after dark, addressing one of the biggest challenges facing renewable power.
The plant will roll out in two phases starting next year, with the first section going online in early 2026. Once complete, it will pump out about 3,000 GWh of clean power annually and cut carbon emissions by 1.4 million tons per year. “The integration of battery storage with solar PV is a game-changer for Egypt’s energy sector,” said Iain Macaulay from BII.
Norwegian company Scatec will build and run the facility under a 25-year power purchase deal with Egypt’s state electricity company. The project costs $590 million total, with the three banks covering about 80 percent through various loan packages.
The plant shows how development banks can pool resources to back clean energy projects that might struggle to get commercial financing alone.
