AfDB approves $27Mn financing for Egypt’s 200MW solar energy project

AfDB approves $27Mn financing for Egypt’s 200MW solar energy project

Accelerating the transition to sustainable energy to meet escalating power demands, Egypt’s 200 MW solar energy project has recently attained approval from the African Development Bank (AfDB) for a $27.2 million financial backing that will be used for supporting the project’s design, construction, and operation.

Reports claim that the project, upon completion, could reduce the cost of electricity for businesses and the residential sector in Egypt. Simultaneously, it will help curb about 7 million tons of CO2 equivalent greenhouse gas emissions whilst creating around 800 jobs during its construction.

Apparently, associations like the Green Climate Fund, the European Bank of Reconstruction and Development, the OPEC Fund for International Development and the Arab Bank are also expected to pour in funds in the project.

Remarking on its financing, AcKevin Kariuki, VP of Power, Energy, Climate and Green Growth, AfDB, said that they are delighted to financially back the project that will eventually deliver one of the lowest generation tariffs on the continent. The project aids Egypt’s energy transition and facilitates the country’s mission to achieve a targeted 20% share of renewables by the year 2022.

Surprisingly, despite the impacts of COVID-19 pandemic, Egypt’s economy has continued to grow, recording high electricity demand at an average annual rate of 7%. Currently, the country’s grid is linked with other grids that are owned by neighboring countries of Sudan and Libya.

Having said that, construction of the 200MW solar project in Egypt could greatly contribute to energy trading and electricity access in the region. The project is in line with Egypt’s national sustainable energy strategy as well as AfDB’s ‘New Deal on Energy for Africa,’ which aims at accelerating the share of renewable energy in Africa through backing the country’s energy sector.

Notably, Egypt is one of the founding members of the AfDB. Since its inception, the bank has funded over 100 projects in Egypt across diverse sectors.

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