Renewable energy development in the Middle East and North Africa region continues to attract investment and financial support from global institutions.
The European Bank for Reconstruction and Development (EBRD), and other financial institutions, have announced the launch of a funding framework for private sector renewable energy development in four countries across the Middle East and North Africa (MENA) region, with private sector developers in Morocco, Egypt, Tunisia, and Jordan set to benefit from this framework.
The EBRD, along with the Climate Investment Funds’ Clean Technology Fund, and Global Environment Facility (GEF), will provide $250 million through debt and equity funding.
The first project to receive funding under this framework will be 120 MW MW Khalladi wind farm near Tangiers in Morocco, which is being developed by a special purpose company jointly owned by ACWA Power, Argan Infrastructure Fund, and UPC Renewables North Africa, that also received funding worth $124 million from Moroccan commercial bank BMCE Bank.
Egypt has emerged as a highly promising renewable energy market, project developers from around the world announcing plans to set up large-scale renewable energy projects in the country. Scatec Solar recently signed an agreement to set up 250 MW solar power projects, while ACWA Power, in partnership with Masdar Group, plans to set up 2 GW of solar and wind energy projects. TerraSolar and SkyPower have also announced plans to make significant investments in Egypt.
Jordan has an active solar power program and has already conducted two auctions allocating 400 MW. Recently, the European Investment Bank and the development bank of France announced debt finance package to boost development of transmission infrastructure for renewable energy projects.
Tunisia has an ambitious plan to increase the share of electricity generated from renewable energy sources to 25% by 2030. In 2009, the government announced the Tunisian Solar Plan through which 40 renewable energy projects will be set up.