The European Bank for Reconstruction and Development (EBRD) has released $5.5 million tranche of the loan to TAQA PV for Solar Energy, a subsidiary of TAQA Arabia, as part of the current financing of green joint ventures between private companies.
The new funding is to finance the construction and operation of a 7 MWp solar project in Minya Governorate, Egypt, according to EBRD’s statement on Tuesday.
The statement clarified that the new loan comprises a $ 4.95 million loan from EBRD and a $ 550,000 concessional loan from the Global Environment Facility (GEF).
“supporting the growing private sector from renewable energy is critical to accelerating a low-carbon economy and strengthening green supply chains in Egypt and Africa,” Nandita Parshad, EBRD’s managing director of sustainable infrastructure company, said.
These investments contribute to the ongoing energy transition in Egypt, host of the COP27 global climate summit, by supporting the growth of renewable energy.
Parshad added, “With the climate conference in Sharm El Sheikh, we are proud to expand our partnership with an Arab energy company to expand Egypt’s own renewable energy capabilities,”
TAQA Arabia will sell a total of renewable energy to Ascom for Carbonate and Chemical Manufacturing company (ACCM) under a 25-year energy purchase agreement.
“This project confirms TAQA Arabia’s ability to provide the latest sustainable solutions to a large base of private-sector companies, such as ACCM,” Pakinam Kafafi, CEO of TAQA Arabia, said.
Kafafi added the new plant will contribute to ACCM’s efforts to maximise the opportunities of using renewable energy resources, reducing its total annual electric power consumption by 16 percent.
EBRD noted the tranche comes after it has provided an initial loan of $4.2 million in December 2020 to finance the construction and operation of a 6 MW solar power plant in Dina Farms at El Beheira Governorate.
The plant is the first renewable energy project funded by EBRD in Egypt to be a private seller and buyer and enable Africa’s largest dairy farmer, Dina farms to replace part of its energy consumption with clean energy.
The Egyptian government aims to raise the national share of electricity generation capacity from renewables from 20 per cent in 2022 to 42 per cent by 2035.
EBRD has invested till now more than €10.3 billion in 154 projects in Egypt, where the Bank’s areas of investment include the financial sector, agribusiness, manufacturing and services.
In addition to that the bank spent in the infrastructure projects in areas including the power sector, municipal water and wastewater services, and transport.
