en.Wedoany.com Reported - The European Bank for Reconstruction and Development (EBRD) is considering providing up to $170 million (€148.3 million) in senior debt financing for Egypt's Nefer Menya project. This project is a 1 GW hybrid solar and 600 MWh battery energy storage system, developed by a consortium led by Infinity Power Holding. Following a concept review, the EBRD will co-finance the project with other parties.
The EBRD plans final approval on July 22, 2026. The total project cost is estimated at $764 million. Once operational, the Nefer Menya project is expected to reduce carbon dioxide emissions by up to 1.3 million tons annually. Located in Egypt's Minya desert, the project is 51% owned by Infinity Power Holding and 49% by HAU Energy, and is one of the country's first large-scale battery energy storage projects.
This senior debt financing aims to bridge funding gaps during the project's critical development and construction phases, unlocking faster financing for utility-scale solar-plus-battery portfolio projects. It supports the construction of the hybrid plant by reducing funding delays in procuring major equipment, including solar photovoltaic modules, inverters, transformers, grid interface systems, and battery power blocks. Additionally, the financing helps accelerate the grid connection and commissioning of solar generation and battery storage, increasing the likelihood of achieving first power generation on schedule.
The EBRD's involvement will enhance the project's bankability and boost lender confidence, helping to secure remaining project financing and guarantees. This enables earlier delivery of the battery storage capacity (600 MWh), allowing the system to provide reliability services sooner. Once operational, by more effectively shifting solar power to peak demand periods and nighttime hours, operational flexibility improves, directly increasing available clean electricity. The financing also supports the equipment and integration required for rapid response capabilities (power quality support and frequency/voltage ancillary services), helping to strengthen grid stability and alleviate stress from variable renewable energy output.
The EBRD's role and co-financing structure help reduce overall project risk for other stakeholders, assisting the consortium in advancing from the concept stage to final approval and execution. By demonstrating a replicable financing and delivery model for large-scale hybrid solar-plus-storage projects in Egypt, this financing is expected to promote capacity growth in the broader market. The project supports faster decarbonization goals by accelerating the timeline to operation, shortening the cycle from construction start to clean power generation. Furthermore, structured senior debt financing typically supports more predictable project cash flows, helping to improve cost and schedule discipline for the $764 million total project, and supports early-stage work such as site preparation, EPC contract preparation, and milestone payments related to permitting, reducing common schedule delays in large-scale infrastructure construction.
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