By: AGBI

The European Bank for Reconstruction and Development (EBRD) is to loan $65 million (EGP3.4 billion) to go towards a $180 million renewable energy project in Egypt’s Western Desert, 650km south of Cairo.

The construction bridging loan, a short-term financing that lasts up to 12 months, will be provided to Cairo’s HAU Energy.

HAU Energy was established in 2024 to invest in renewable energy projects in Egypt. The company is owned by French asset manager Meridiam, Egypt’s Hassan Allam Utilities and the EBRD.

The funding will support the construction and installation of a 200MW solar photovoltaic plant and a 120 megawatt-hour battery energy storage system in Benban, near Aswan, the EBRD said in a statement.

The facility is expected to reduce carbon emissions by up to 280,000 tonnes annually.

The EBRD said it will also back the design and implementation of two nationally accredited technical training programmes focused on green skills for young jobseekers. 

In December the EBRD said it would provide $235 million to support Egypt’s plans to transition to a green economy.

The Nexus of Water, Food and Energy programme was launched in 2022 and aims to advance Egypt’s national climate agenda by mobilising climate finance and private investment in support of the green transition.

The EBRD is Egypt’s lead partner on the programme’s energy pillar, having pledged more than $500 million.

Since 2012 the development bank has invested more than $17.2 billion in 225 projects across the country.