IFC has announced a new partnership with AMEA Power and Kyuden International Corporation of Japan to strengthen Egypt’s energy security through a large solar and battery storage project. The partnership will support the construction of a large-scale solar power plant with an integrated battery energy storage system in southern Egypt, helping the country meet rising electricity demand in a clean and reliable way.
The project involves a total debt package of $571.8 million led by IFC. This includes funding from IFC’s own account as well as money mobilized from several international partners. The financing will go to Abydos For Renewable Energy, the project company developing Abydos II. The project includes a 1,000 megawatt solar photovoltaic power plant along with a 600 megawatt-hour battery energy storage system. Abydos II will be located in Aswan Governorate.
Once operational, the project is expected to deliver more than 3 million megawatt-hours of clean electricity every year. The battery system will store solar power during the day and supply emission-free electricity during peak demand at night, improving grid stability. The project is expected to reduce carbon emissions by nearly 1.6 million tons every year. This will support Egypt’s goal of cutting power sector emissions by 37 percent and reaching 42 percent renewable energy in its electricity mix by 2030.
The project is also expected to create strong local benefits. During construction, more than 4,000 jobs are expected to be created, with over 95 percent of these roles filled by Egyptians. IFC will also support AMEA Power with guidance on managing environmental and social risks, including worker safety and health, in line with IFC’s Performance Standards.
IFC is providing a senior loan of $83.5 million and has mobilized $465.2 million from international lenders. These include Italy’s Cassa Depositi e Prestiti, the Dutch Entrepreneurial Development Bank, DEG of Germany, British International Investment, the OPEC Fund for International Development, and the Europe Arab Bank. In addition, concessional finance is being provided to reduce project risk and attract private investment. The Clean Technology Fund is offering a $20 million concessional senior loan, while the MENA Private Sector Development Program, supported by the Government of the Netherlands, is contributing $3.1 million.
This project builds on the long-standing partnership between IFC and AMEA Power in Egypt. It follows the twin 500 MW Abydos Solar and 500 MW Amunet Wind projects developed in 2022 and the financing of Egypt’s first utility-scale battery energy storage system earlier this year. The project also marks Kyuden International Corporation’s first investment in Egypt.
The project is aligned with Egypt’s Nexus of Water, Food, and Energy platform and is part of the government’s fast-track 4 GW Emergency Renewable Energy Program. It also supports the World Bank Group’s Country Partnership Framework for Egypt and contributes to Mission 300, which aims to expand affordable power and attract private investment across Africa.
Since 2017, international partners, including the World Bank Group, have supported several large solar and wind projects in Egypt. IFC has been active in the country since 1976 and has invested and mobilized nearly $10 billion, with a strong focus on renewable energy and climate finance.
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