European Bank boosts solar sector in Egypt

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European Bank boosts solar sector in Egypt

Solar sector in Egypt is set to improve significantly after the European Bank for Reconstruction and Development (EBRD) promised to pump to USD 500 million (EUR 471m) by early 2016.

According to EBRD officials the fund is expected to boost the power situation in Egypt.

The programme targets up to 2 GW of utility-scale solar capacity through the construction of around 40 projects of about 50 MW each. Many of the projects will be built on a planned 1.8-GW site near Benban in Upper Egypt, which once completed will be the largest solar park globally, according to the announcement.

The EBRD will finance several such plants up to USD 500 million and is looking to mobilise up to USD 1.5 billion in debt and equity from other financiers. The project is expected to require a total investment of around USD 4 billion.

The programme is part of Egypt’s strategy to obtain 20% of its electricity from renewable sources by 2020.
“Successfully implementing the feed-in tariff programme will unlock Egypt’s potential by providing a regulatory framework that can attract private capital,” said Nandita Parshad, EBRD director for power and energy.

The EBRD has worked with the Egyptian government during the development of the legal and regulatory framework for renewable energy.

The power support that have been received by Egypt is one of the very great steps being taken by Egypt so far to cub the power shortage.

The country is currently on its first stage to construct its first nuclear power plant and its expected that it will be of great boost to the power sector.

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