BII commits over $300 mln to Egypt's renewable energy projects - Energy
The funds will help develop more than 2 gigawatts of new renewable energy capacity, contributing to Egypt's target of generating 42 percent of its electricity from renewable sources by 2030.
The financing supports two large-scale projects: the 1.1 gigawatt Gulf of Suez Wind Farm, set to be Africa's largest onshore wind installation, and a 1 gigawatt solar photovoltaic (PV) and battery energy storage system (BESS) being developed in collaboration with Norwegian energy company Scatec.
Gulf of Suez Wind Farm: Africa's largest onshore wind project
BII is investing $190 million in the $1.05 billion Gulf of Suez Wind Farm, which will produce over 4,300 gigawatt hours (GWh) of electricity annually and prevent an estimated 2.2 million tonnes of CO₂ emissions per year. The project is also expected to support more than 10,000 jobs, according to BII.
The wind farm is part of a $707 million debt package backed by a group of development finance institutions (DFIs), including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), DEG – Deutsche Investitions- und Entwicklungsgesellschaft, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).
The project is a core pillar of Egypt's Nexus of Water, Food, and Energy (NWFE) initiative, a government framework that aims to integrate climate-related investments across various sectors.
Pioneering solar + storage: Egypt's 1st utility-scale BESS project
BII is also co-financing Egypt's first utility-scale solar and battery storage project alongside Scatec, the EBRD, and the AfDB. The $475.6 million project, which accounts for 80 percent of the total capital cost, will deliver 1 GW of solar capacity and 200 megawatt-hours (MWh) of battery storage aimed at enhancing grid reliability.
To support the battery component, BII is providing a $100 million concessional loan and a $15 million grant as part of a blended finance approach aimed at reducing costs and attracting private investment.
With these deals, BII's total investment portfolio in Egypt now exceeds $708 million. The institution says it views Egypt as a key market in its broader North Africa strategy, which includes green hydrogen projects in Morocco and sustainable agriculture initiatives in Tunisia.
'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,' said Sherine Shohdy, BII's Head of Egypt Office and Coverage Director.
'Through our capital partnerships, we are proud to deliver new infrastructure that provides affordable, reliable, low-carbon power and unlocks 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', Shohdy added.
Both projects support Egypt's Vision 2030 development strategy and highlight growing international interest in the country's energy transition. They also reflect the role that concessional finance is playing in making large-scale renewable projects viable in emerging markets.
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