October 2 (Renewables Now) - The European Bank for Reconstruction and Development (EBRD) will extend a USD-28.5-million (EUR 24.3m) loan for a 50-MW solar project in Egypt proposed by a unit of Saudi Arabia’s Alfanar Company.
The financing, announced on Friday, comes together with another USD-28.5-million loan that will be provided by the private sector arm of the Islamic Development Bank (IsDB). The EBRD loan is part of a USD-500-million framework for renewable energy in Egypt that the bank approved this summer.
The solar project by Alfa Solar Co will be supported by Egypt's feed-in tariff (FiT) programme. It envisages the construction of a 50-MW photovoltaic (PV) facility in Aswan province within the 1.8-GW Benban solar complex, aimed at delivering more than 4 GW of wind and solar power capacity. Once operational, the 50-MW plant is expected to help avoid 100,000 tonnes of carbon dioxide (CO2) emissions per year. Its output will be sold under a power purchase agreement (PPA) with Egyptian Electricity Transmission Co.
The EBRD noted it has channelled over EUR 3.7 billion in renewable energy schemes globally. Its USD-500-million framework for Egypt will back 750 MW of solar across 16 projects.
(USD 1.0 = EUR 0.851)