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EBRD Considers Senior Financing for 1.95 GW Solar, 3.9 GWh BESS in Egypt

UK-based European Bank for Reconstruction and Development (EBRD) is considering senior financing to fund the development and operation of a solar with storage base load power project in Egypt.

The Energy Valley project comprises a 1.95-gigawatt (GW) solar photovoltaic project integrated with 3,935 megawatt-hours (MWh) of battery energy storage systems (BESS) and associated transmission infrastructure, according to project information posted on EBRD’s website.

The hybrid development is designed to provide at least 100MWac of 24-hour solar-based baseload power.

The financing would comprise A and B loans to Energy Valley SAE, a special purpose vehicle (SPV) owned by Scatec and potentially other co-sponsors.

The website didn’t disclose the amounts but said the financing is currently classified as ‘In Exploratory, Pending Final Review.’

The European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), European Investment Bank (EIB) and Italy's Cassa Depositi e Prestiti (CDP) are identified as co-lenders.

The project is also expected to benefit from first-loss risk cover under the European Fund for Sustainable Development Plus (EFSD+) Hi-Bar guarantee programme.

Electricity generated by the project will be sold to the Egyptian Electricity Transmission Company (EETC) under a 25-year power purchase agreement (PPA).

Four project locations

The development will comprise infrastructure across four locations in Egypt.

1. The main hybrid facility in East Minya will comprise the entire 1.95GW solar PV capacity and a 1.5GWh BESS.
2. At Al Sarirya, the project will include a 500/220/22kV substation and a 2.5km, 500kV overhead transmission line.
3. A separate facility at Abu Qir in Alexandria will comprise a 1.435GWh BESS and a 33/220kV substation.
4. At Nagaa Hammadi in Qena, Scatec plans a 1GWh BESS, a 33/220kV substation and an overhead transmission line.

The project information identifies JA Solar, Tongwei and DMEGC as solar PV suppliers, while Sungrow has been selected as the BESS supplier.

The project is one of the first hybrid renewable projects with integrated BESS and the first of its kind designed to produce a 24/7 solar baseload of at least 100MWac in Egypt, according to EBRD.

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