The European Bank for Reconstruction and Development (EBRD) has approved a $65 million construction bridging loan to HAU Energy to support a new solar and battery storage project in Egypt’s Benban Solar Park.
The financing will support the development of a 200-megawatt (MW) solar photovoltaic plant alongside a 120 megawatt-hour (MWh) battery energy storage system near Aswan.
The project is expected to reduce carbon dioxide emissions by up to 280,000 tonnes annually once operational.
The EBRD made the announcement on Wednesday as part of its ongoing investments in Egypt’s energy sector, reinforcing the country’s push to expand renewable energy capacity.
Project to be integrated into Benban Solar Park infrastructure
The new project will be located within the Benban Solar Park, a large-scale solar photovoltaic complex in Egypt.
Developed over several phases, Benban hosts dozens of solar plants with a combined capacity of more than 1.6 gigawatts.
The site was designed to attract private sector investment and has received funding from multiple international institutions, including the EBRD.
Earlier developments in the park focused largely on solar generation. The new project includes battery storage in addition to solar generation.
The EBRD stated that integrating storage with solar projects can help manage fluctuations in power supply and support grid stability, particularly when solar generation is not available
What EBRD is saying
According to Aida Sitdikova, EBRD’s Director of Sustainable Infrastructure for the Middle East and Africa, the project reflects the bank’s continued support for Egypt’s energy transition.
“As the country works to diversify its energy mix, reduce reliance on imported fuels, and enhance resilience to external shocks, we are extending our partnership with Meridiam and HAU,” she said.
She added that the partners’ commitment to high standards remains important in delivering impactful infrastructure projects.
Meanwhile, Dalia Wahba, Chief Executive Officer of Hassan Allam Utilities, described the development as a step toward strengthening renewable energy deployment in Egypt.
“This project marks a significant step in expanding Egypt’s renewable energy capacity through the integration of utility-scale solar and battery storage,” Wahba said.
She noted that combining solar generation with storage would help enhance grid stability and enable greater reliance on clean energy.
Egypt’s energy transition push
Egypt is increasing its renewable energy capacity as part of its national strategy to reduce dependence on fossil fuels and meet rising electricity demand
The country has set targets to increase the share of renewables in its energy mix, supported by large-scale projects such as Benban and wind developments along the Red Sea coast.
In 2012, the EBRD has invested more than €14.6 billion across over 200 projects in Egypt, spanning energy, infrastructure, and private sector development.
The latest financing for HAU Energy adds to a series of renewable energy investments backed by the bank, particularly within the Benban complex, where it has previously supported several solar plants.
According to the company, the inclusion of battery storage in this project aims to enhance the reliability and efficiency of renewable power as capacity increases.
