Wedoany.com Report-May 17, The European Bank for Reconstruction and Development (EBRD) has provided a $30 million equity bridge loan to Obelisk Solar Power, a special purpose vehicle owned by Scatec ASA, to support Egypt’s renewable energy ambitions. The funding will facilitate the construction of a 1-gigawatt-alternating current (GWac) photovoltaic solar plant and a 200 MWh battery energy storage system (BESS) in Nagaa Hammadi, Egypt.

This project, one of Egypt’s first hybrid renewable energy initiatives, aims to bolster the country’s green energy transition and improve the reliability of its national electricity grid amid rising energy demand. Located in Nagaa Hammadi, the solar plant and BESS will integrate advanced renewable technologies, setting a precedent for future hybrid energy projects in Egypt.

The initiative aligns with the EBRD-led energy pillar of Egypt’s Nexus on Water, Food, Energy, launched during COP27 in Sharm El Sheikh in 2022. This program seeks to establish Egypt as a regional leader in renewable energy. The Nagaa Hammadi project is projected to reduce Egypt’s annual CO2 emissions by approximately 1.36 million tons, contributing significantly to the country’s sustainability goals.

An EBRD spokesperson stated: “The project is expected to reduce Egypt’s CO2 emissions by approximately 1.36 million tons annually.” The hybrid system’s innovative design is expected to enhance grid stability and serve as a model for integrating renewable energy technologies into Egypt’s energy infrastructure.

Since starting operations in Egypt in 2012, the EBRD has invested over €13.8 billion in 201 projects across sectors such as financial services, agribusiness, manufacturing, infrastructure, and transport. The support for Obelisk Solar Power underscores the bank’s commitment to fostering sustainable energy development in the region.

The Nagaa Hammadi project represents a key step in Egypt’s efforts to diversify its energy mix and meet growing electricity needs with cleaner, more reliable sources. By combining solar power with battery storage, the initiative strengthens Egypt’s position as an emerging hub for renewable energy innovation.