EBRD backs solar plant and battery storage in Benban

• US$ 63.5 million package will support construction of combined solar power plant and battery storage system owned by Infinity Power and HAU Energy
• Package includes US$ 7.5 million of concessional financing from Clean Technology Fund
• Battery storage will improve reliability of grid and supply power after sunset

The European Bank for Reconstruction and Development (EBRD) is helping to finance a solar power plant with a battery energy storage system in Benban near Aswan, supporting Egypt as it seeks to increase its renewable electricity capacity and strengthen the reliability of its power system.

An EBRD-backed package of up to US$ 63.5 million (€54.0 million) will fund Nefer Benban for Renewable Energy, a special-purpose vehicle owned by Infinity Power and Hassan Allam Utilities Energy. The package consists of two components: up to US$ 56 million (€47.6 million) from the EBRD’s own funds and up to US$ 7.5 million (€6.4 million) of concessional financing from CIF’s Clean Technology Fund (CTF) under its Accelerating Innovation in Renewable Energy 2.0 programme.

Separately, the EBRD agreed a US$ 65 million (€55.2 million) construction bridge loan with HAU Energy in April 2026 to finance the development and construction of the solar plant and the battery storage system. DEG, the German development finance institution, is contributing an equal amount to the financing as part of an aggregate debt package of up to US$ 127 million (€108.0 million).

The 258.5 MWp solar photovoltaic plant will be combined with a 120 MWh battery storage system, making it one of the first solar plants in Egypt to include battery storage. The system will store excess electricity produced during the day and release it during periods of peak demand after sunset, helping to balance fluctuations in the generation of renewable energy and support the stability and reliability of the grid. Electricity from the plant will be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement, providing clean renewable power at a cost below that of conventional generation. The project is expected to reduce annual CO2 emissions by more than 349,000 tonnes and power approximately 310,000 homes.

In addition to the concessional financing, the CTF will also fund technical cooperation to introduce two nationally accredited technical training programmes focused on green skills for young labour market entrants in Aswan governorate, equipping them with future-ready skills and enhancing their employability in Egypt’s growing renewable energy sector. CTF funding will also support (HAU) in strengthening its human resources policies and practices, embedding gender equality in its workforce management strategy and enhancing women’s access to technical and leadership roles in the traditionally male-dominated energy sector.

This investment supports the EBRD-led energy pillar of Egypt’s Nexus of Water, Food and Energy (NWFE) initiative, launched at COP27 in Sharm El Sheikh. The initiative aims to support the closure of 5 GW of inefficient fossil-fuel capacity and the deployment of 10 GW of new renewable energy capacity developed by the private sector.

Aida Sitdikova, Director of Sustainable Infrastructure for the EBRD in the Middle East and Africa, said: “Battery storage will play an increasingly important role as Egypt expands renewable electricity generation. Benban is an important early example of how solar generation and storage can be brought together in Egypt, paving the way for further investment in this technology. This is precisely the kind of innovation that can help to accelerate the country’s energy transition.”

Nayer Fouad, co-founder and CEO of Infinity Power, said: “We are proud to return to Benban, Aswan, with the Nefer project, building on a legacy that began in 2017 when we became the first developer to establish renewable energy projects in the Benban Solar Park. Today, Nefer Benban marks a new chapter in that journey, combining renewable power generation with advanced battery storage to deliver cleaner, more reliable energy for Egypt. The support provided by the EBRD and our financing partners is a strong endorsement of the project’s strategic importance and the critical role energy storage will play in enabling Egypt’s energy transition.”

Dalia Wahba, CEO of Hassan Allam Investment Managers, added: “The Nefer Benban project represents another significant milestone in our commitment to advancing Egypt’s renewable energy transition and strengthening the country’s energy infrastructure. By combining solar generation with battery storage, we are taking an important step towards providing more reliable, efficient and sustainable power while supporting Egypt’s long-term energy ambitions. This financing reflects our international financing partners’ continued confidence in Egypt’s renewable energy sector and the strength of our partnership with Infinity Power. At Hassan Allam Utilities, we remain focused on scaling investments in innovative energy solutions that enhance energy security, drive sustainable economic growth and create lasting value for the communities we serve.”

Infinity Power, a joint venture established in 2019 that brings together Infinity and Masdar, is the largest African pure-play renewable energy provider. The EBRD holds an equity stake in Infinity Power. HAU Energy was established in 2024 to invest in renewable energy projects in Egypt and is owned by Meridiam, Hassan Allam Utilities and the EBRD.

Egypt is one of the founding members of the EBRD. Since it started operating in the country in 2012, the EBRD has invested more than €16 billion in Egypt through 238 projects to date.