A consortium of leading development finance institutions - the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), and British International Investment (BII) - is mobilizing a total of $479.1 million to support a pioneering solar and battery storage project in North Africa. The financing will enable the construction of the power plant in Egypt’s Nagaa Hammadi region.

The collaboration represents one of the largest blended finance packages in the region’s renewable energy sector to date, designed to strengthen energy security, reduce carbon emissions, and demonstrate replicable models for sustainable infrastructure financing in Africa.

The African Development Bank’s funding package includes $125.5 million in commercial loans, along with concessional funding: $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, and $20 million from the Climate Investment Funds’ Clean Technology Fund. The package was approved by the Bank’s Board of Directors on 11 June 2025.

“This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development. It has a high demonstration and replication potential for similar initiatives across the continent.”, said Wale Shonibare, The African Development Bank’s Director of Energy Financial Solutions, Policy, and Regulations.

The European Bank for Reconstruction and Development is providing up to $173.5 million in financing, of which $101.9 million is covered by the European Fund for Sustainable Development Plus (EFSD+) and an additional $6.5 million grant is being provided by the EBRD Shareholder Special Fund.

“We’re delighted to work with our longstanding partners SCATEC, African Development Bank and BII to support this transformative project, which takes Egypt's green energy transition to another level by harnessing the power of the sun not just during the day but also at night, thanks to the combination of solar and battery storage. It addresses the growing demand for electricity and reduces the need to import expensive fossil fuels.”, said Boyd Carpenter, EBRD Managing Director for Sustainable Infrastructure.

British International Investment is contributing a $100 million concessional loan. Iain Macaulay, Director and Head of Project Finance in Africa, shared: “This agreement underscores BII’s commitment to innovative and sustainable energy solutions. The integration of battery storage with solar PV is a game-changer for Egypt's energy sector, providing reliable and dispatchable renewable energy and reducing reliance on fossil fuels. This project not only meets Egypt's current energy needs but also sets a precedent for future dispatchable hybrid renewable energy projects in the region.” 

The solar plant, developed by Scatec, will be built in two phases. Upon completion, it will be the first integrated solar and battery storage project of this scale in Egypt, representing a significant milestone in the country’s energy transition. Egypt aims to reach 42 per cent of renewables in its power mix by 2030. The electricity will be sold under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a government guarantee. 

B2EU closely follows major funding initiatives by multilateral development banks, recognizing their vital role in driving sustainable infrastructure and clean energy transitions across the EMEA region. Keep an eye on our website and LinkedIn page to stay up to date.