The European Bank for Reconstruction and Development (EBRD) is supporting Egypt’s transition toward cleaner energy by providing a US$ 65 million construction bridge loan to HAU Energy. The funding will be used for the development of a new renewable energy project located in Benban, near Aswan, which is one of the country’s key solar energy hubs.

The project will involve the construction of a 200 MW solar photovoltaic (PV) power plant along with a 120 MWh battery energy storage system (BESS). This combination of solar generation and energy storage is designed to improve the reliability of renewable energy supply by storing excess solar power and supplying it during periods when sunlight is not available. It is an important step in strengthening Egypt’s clean energy infrastructure and increasing the share of renewables in the national energy mix.

Once fully operational, the facility is expected to reduce carbon dioxide emissions by up to 280,000 tonnes each year. This reduction will contribute significantly to Egypt’s national climate and sustainability goals while also helping to stabilise the electricity grid by better managing the intermittent nature of solar power.

The project will also support the country’s broader efforts to move toward a low-carbon economy and reduce dependence on fossil fuels.In addition to financial support, the EBRD will provide a technical cooperation package through its Gender and Economic Inclusion Technical Cooperation Framework.

This will include the development and implementation of two nationally accredited technical training programmes aimed at equipping young jobseekers with practical green skills. These programmes are designed to prepare youth for employment opportunities in Egypt’s growing renewable energy sector, which is expected to expand rapidly in the coming years.

HAU Energy, which was established in 2024, is an investment platform focused on renewable energy development in Egypt. The company is jointly owned by Meridiam, Hassan Allam Utilities (HAU), and the EBRD, bringing together international and local expertise to deliver large-scale clean energy projects.

According to Aida Sitdikova, Director of Sustainable Infrastructure for the EBRD in the Middle East and Africa, the project reflects the bank’s ongoing commitment to strengthening Egypt’s energy security. She noted that by supporting affordable clean energy generation and storage solutions, the EBRD is helping Egypt diversify its energy sources, reduce reliance on imported fuels, and improve resilience against external economic and energy shocks. She also highlighted the importance of working with experienced partners such as Meridiam and HAU to ensure high-quality project delivery.

Dalia Wahba, Chief Executive Officer of Hassan Allam Utilities, stated that the project represents a major advancement in Egypt’s renewable energy sector. She explained that combining utility-scale solar power with battery storage will improve grid stability and enable a higher share of clean energy to be integrated into the national electricity system.

She also emphasised the value of the ongoing partnership with the EBRD in delivering sustainable and future-ready energy solutions. Egypt has been a founding member of the EBRD. Since 2012, the bank has committed more than €14.6 billion across 225 projects in the country, supporting development across multiple sectors, including energy, infrastructure, and private enterprise.