BII signs over $300 million in agreements to accelerate green growth and Egypt's energy transition

Zawya

3 days ago

The projects will advance Egypt's ambition to generate 42% of its electricity from renewables by 2030.
The Gulf of Suez Wind Farm and the Obelisk solar and battery storage project developed by Scatec will add over 2 GW of clean energy capacity to the national grid and avoid approximately 3.9 million metric tonnes of CO₂ emissions.
New projects demonstrate BII's leading role in Egypt's energy transition through patient capital, which supports grid resilience, green jobs and unlocks replicable climate innovation.
CAIRO: British International Investment (BII), the UK's development finance institution and impact investor, has signed over $300 million in agreements to support two pioneering renewable energy projects in Egypt – a new 1.1 GW Gulf of Suez Wind Farm and a 1.1 GW integrated solar and battery storage project with Scatec. The agreements reflect BII's investment plan to accelerate Egypt's energy transition and build climate-resilient infrastructure that stimulates growth in North African countries.
The Gulf of Suez Wind Farm, a $1.2 billion project and Africa's largest onshore wind development, is expected to generate 4,500 GWh annually, helping to avoid 2.5 million metric tonnes of CO₂ emissions per year. BII's $190 million investment forms part of a broader $704 million in debt financing with a consortium of development finance institutions (DFIs) including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), DEG – the German Development Finance Institution, the OPEC Fund for International Development, and the Arab Energy Fund. The project builds on Egypt's Nexus of Water, Food & Energy (NWFE) programme and will create over 10,000 power enabled jobs.
BII has also signed an agreement to co-finance Egypt's first integrated solar photovoltaic (PV) and battery energy storage system (BESS), in partnership with Scatec, AfDB, and EBRD. The $479.1 million project – representing 80 per cent of the total capital cost – will deliver 1.1 GW of solar PV capacity and 200 MWh of battery storage. BII is providing a $100 million concessional loan and a $15 million grant to reduce the cost of the BESS component, making the project more viable, attracting private investment, and setting a model for future deals.
With a portfolio size of over $708 million, Egypt is a critical partner for BII with the latest agreements reflecting an ongoing commitment to the region's climate agenda. The projects align with BII's North Africa climate strategy, which underscores the role of innovative and scalable renewable energy technologies that enhance climate resilience for future generations. In Morocco, BII backs green hydrogen projects, while in Tunisia, the DFI is identifying opportunities to scale climate-smart agriculture. These efforts collectively promote climate innovation, enabling the private sector's ability to produce, export and share clean energy.
Iain Macaulay, Director and Head of Project Finance (Africa and Pakistan), BII, said: 'These landmark agreements in Egypt reflect the scale of BII's ambition to accelerate Africa's energy transition through transformative project finance. By backing pioneering renewable infrastructure at this magnitude, we're not only supporting climate resilience and energy security, but also demonstrating how concessional capital can unlock private investment and deliver impact at scale.'
Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, added: 'Our latest agreements reflect BII's long-term commitment to Egypt's clean energy transition and our confidence in the country's ability to lead on climate innovation in the region. Through our capital partnerships, we are proud to deliver new infrastructure that will provide affordable and reliable, low-carbon power and unlock thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy.'
About British International Investment
British International Investment (BII) is the UK's development finance institution and a trusted investment partner to businesses in Africa, Asia, and the Caribbean. It invests to support the UK Government's Clean Green Initiative and to create productive, sustainable, and inclusive economies in eligible markets. Between 2022 and 2026, at least 30 per cent of BII's total new commitments by value will be in climate finance. The company has investments in over 1,470 businesses in emerging economies across 65 countries and total assets of £8.1 billion.