Egypt's Solar Industry Has Once Again Attracted $1.8 Billion In Foreign Investment

- Oct 26, 2017-

China's energy storage network news: the solar industry in Egypt has once again attracted $1.8 billion in foreign investment and is expected to add another 1.4 gigawatts to the pv system, bloomberg reported.

The report said the investment came mainly from the European bank for reconstruction and development and the world bank's international finance corporation.

Among them, the ebrd will support 16 photovoltaic projects;

Ifc will finance 13 photovoltaic projects with a total load of 1.4gw.

In addition, the two financial institutions will provide $380 million and $203 million in loans for Egyptian solar projects, and will raise additional funds from the co-investors.

, head of the European bank for reconstruction and development power and energy companies harry ˙ Boyd - carpenter in a telephone interview, said: "this is the first batch of Egypt non-state-owned capital involved in renewable energy projects, to be able to get approval is not easy.

Egypt's regulatory framework has been adjusted so that it can attract investors from around the world.

It is expected to finance more than one gigawatt of solar installations this year.

It is understood that the land of Egypt across Asia, the two continents, more than 90% of the land area is the desert, the lack of rain throughout the year and most southern areas annual precipitation is almost zero, so the development of solar power has great potential.

But now, more than 90 percent of Egypt's electricity comes from fuel and gas, according to bloomberg new energy finance.

Egypt, meanwhile, has long been plagued by energy and power shortages.

In order to solve the energy problem and environmental protection, Egypt has set a target of 20 percent of the electricity generated from clean energy by 2022. Solar power is an important part of that.

In addition, in order to attract international investors, the Egyptian government last year also adjusted the rules and regulations about solar power expansion plans, not only to allow international arbitration to solve the related contract dispute, also reduced the tariff of solar power projects.

According to bloomberg news, Benban solar park in Aswan province, southeast of Egypt, has a total of 1.8 gigawatts, totaling $2.8 billion, and is expected to be completed in the first half of 2019.

A number of international companies, including Norwegian Scatec solar, Saudi ACWA power and AlFanar, France's EDFEnergiesNouvelles and Eren renewable energy, and dubai's AccessPowerMEA, have been involved in the investment.

In September, the aiib also lent $210 million to Egypt to support the development of 11 solar projects.

The investment bank said, the construction of these projects are expected to help Egypt each year to cut more than 500000 tons of carbon emissions, can not only help enhance the level of renewable power in Egypt, even can drive the surrounding areas of green growth.

The European bank for reconstruction and development, in fact, as early as 2015, approved a plan to investment in Egypt solar, scale of about $500 million of funds, the loans and other support is part of the program.

The plan has been delayed because of a lack of support from the Egyptian industry.

According to Boyd - carpenter, the investment, the European bank for reconstruction and development with the development of the French development agency's financial institutions Proparco, islamic development bank, and the green climate fund.

"It is difficult for local Banks in Egypt to finance these projects because the Egyptian tariffs are paid in Egyptian pounds, and the debt is denominated in dollars, so there are some problems."

"Boyd carpenter explains.

International finance company spokesman RihamMustafa said in an email that the agency would invest in joint ventures with the African development bank, Finnfund and aiib.

Another upi reported, at present, Egypt has a feed-in tariff plan, send electricity by solar project set a price for a long time, however, European bank for reconstruction and development was suggested that the doe, Egypt next year is adjusted for competitive auction system.