After attracting interest from renewable energy project developers from around the world, Egypt is likely to get financial support from development banks in Europe to make make the projects operational.
The European Bank for Reconstruction and Development (EBRD) announced that it has received funding requests from as many as 67 private companies looking to develop renewable energy projects in Egypt. The Bank also revealed that it has already allocated several million dollars for this purpose.
The French Development Agency Group also announced that it would provide €60 million for the development of renewable energy projects, having signed an agreement with Egypt’s Commercial International Bank for this purpose.
Over the last few months, some of the leading global renewable energy companies have entered the Egyptian market. ACWA Power, along with the Masdar Group, signed an agreement to develop 1.5 GW solar and 500 MW wind energy capacity. Terra Sola has announced a $3.5 billion investment to set up about 2 GW of solar power capacity over the next few years, with initial plans to set up a 800 MW solar power park, while SkyPower Global and International Gulf Development have jointly signed agreement to install up to 3 GW of solar power capacity over the next 4 years.
The 2020 target set by Egypt’s New & Renewable Energy Authority includes 12% from wind power and 8% from other technologies like solar power and hydro power. The expected capacity addition is skewed towards wind energy, as solar power is still costly in Egypt, while hydro power potential has been largely utilized.