IFC, int'l partners approve $1.1 bln loan for renewable energy plants in Egypt

The financing package will support UAE-based AMEA Power to build, own, and operate twin solar and wind plants in Egypt, delivering more than 1 gigawatt of renewable energy at the lowest price in Africa.

The new finance is expected to benefit 1 million Egyptians who will secure access to clean energy.

The investment includes loans from the IFC of up to $145 million to the Abydos Solar Company and the Amunet Wind Power Company, subsidiaries of AMEA Power. As the hedging organisation for both projects, the IFC is also removing most of the risk of rising interest rates by swapping the variable interest rate for a fixed rate for the term of loans for the combined packages.

When built, the 560MW Abydos Solar PV and 505MW Amunet Wind independent power projects, which will be Egypt’s largest of their kind, will generate over 4,000 gigawatt-hours per year of power. Power from the solar park and the wind farm will be priced at 2 US cents/kilowatt hour and 3 US cents/kilowatt hour, respectively, which are the lowest rates in Africa and among the least expensive rates globally.

Abydos and Amunet will reduce Egypt’s carbon footprint by 1.7 million tons of greenhouse gases annually.