EGYPT —Egypt is advancing a major renewable energy development in Minya through a financing package arranged by the European Bank for Reconstruction and Development (EBRD) for Nefer Menya for Renewable Energy S.A.E. The project combines a 1.2 GW solar photovoltaic plant with a 600 MWh battery energy storage system, positioning it among the country's largest planned integrated solar and storage installations. The EBRD is arranging a loan of up to US$ 265 million, within an aggregate debt financing package of up to US$ 566 million.
The EBRD financing comprises a US$ 160 million loan from its own resources, a US$ 75 million syndicated loan mobilised from Bank of Jordan, and up to US$ 30 million in concessional financing from the Clean Technology Fund (CTF) under its Global Energy Storage Program. German development finance institution DEG, the Dutch Entrepreneurial Development Bank (FMO) and France's Proparco are also participating in the wider financing arrangement. Nefer Menya is a special-purpose project company owned by Infinity Power and HAU Energy B.V.
The planned battery installation will store electricity generated during daylight hours and release it when demand rises after sunset. This arrangement is intended to reduce the mismatch between solar generation and peak electricity consumption, helping the national grid accommodate a greater proportion of intermittent renewable power. Under a 25-year power purchase agreement, electricity will be sold to the Egyptian Electricity Transmission Company, providing a long-term contractual framework for project revenues.
The development is expected to avoid more than 1.5 million tonnes of carbon dioxide emissions annually and supply electricity equivalent to the needs of over 1.4 million homes, according to project estimates. Its combination of utility-scale generation and storage is particularly relevant to Egypt's efforts to improve energy security, reduce exposure to conventional fuel requirements and expand renewable electricity capacity without compromising grid reliability.
The investment supports the energy pillar of Egypt's Nexus of Water, Food and Energy initiative, launched at COP27. The programme seeks to facilitate 10 GW of additional private-sector renewable energy capacity while reducing 5 GW of inefficient fossil-fuel generation capacity. The project therefore has implications beyond electricity production, including demand for solar equipment, battery systems, grid integration services, engineering contractors and long-term operations and maintenance providers.
The financing package also includes concessional support for workforce development in Minya. The CTF will fund two nationally accredited technical training programmes focused on green skills for young people entering the labour market. Additional technical cooperation will support Hassan Allam Utilities in strengthening human resources practices, integrating gender equality into workforce management and improving women's access to technical and leadership positions.
For lenders and infrastructure investors, the transaction illustrates how development finance institutions can combine direct lending, syndicated capital and concessional funding to support large renewable energy assets. The long-term power purchase agreement provides a contractual basis for electricity sales, while the storage component addresses an important operational challenge associated with increasing solar penetration. Project delivery will nevertheless depend on construction execution, equipment availability, grid integration and the successful commissioning of both generation and storage facilities.
The EBRD is a multilateral development bank that finances private-sector and infrastructure development across its countries of operation. Infinity Power, a joint venture established in 2019 by Infinity and Masdar, develops renewable energy projects across Africa. HAU Energy was established in 2024 to develop renewable energy projects in Egypt and is owned by Meridiam, Hassan Allam Utilities and the EBRD.
