EBRD & TAQA Arabia Promote Renewable Energy in Egypt
The European Bank for Reconstruction and Development is promoting the expansion of renewable energy in Egypt by supporting one of the first green private-to-private projects in the country, with an initial USD 4.2 million loan to TAQA PV for Solar Energy, TAQA Arabia’s renewable energy subsidiary. The loan is part of a financing package of up to USD 10 million to expand TAQA Arabia’s private-to-private renewable energy business.
The EBRD funds will finance the construction and operation of a 6 MWp solar photovoltaic power plant located at Dina Farms in the Beheira governorate, 80 km from the Egyptian capital Cairo. This photovoltaic power plant will enable Dina Farms, the largest dairy farm in Africa, to cover part of its energy consumption with clean energy. TAQA PV for Solar Energy will sell all of its generated energy to Dina Farms under a 25-year power purchase agreement.
The plant is the first private-to-private renewable energy project financed by the EBRD in Egypt involving direct electricity supply from a privately owned generator to a private off-taker through a corporate PPA.
The EBRD’s investment will contribute to Egypt's ongoing energy transition by supporting the growth of renewable energy. The Egyptian government has declared a target of achieving 20 per cent of the country’s electricity generation capacity from renewable sources by 2022 and 42 per cent by 2035.