Infinity Power and HAU Energy have secured up to US$566 million in debt financing for Egypt’s 1.2 GW Nefer Minya solar project, which will combine large-scale solar generation with a 600 MWh battery storage system. The project is expected to become Egypt and Africa’s largest solar power plant, with a 25-year power purchase agreement.
CAIRO, Egypt: As Egypt continues to advance its energy transition, Infinity Power and HAU Energy have secured up to US$566 million in debt financing for the Nefer Minya Solar PV Project, combining large-scale solar generation with utility-scale battery storage. The funding will support the Nefer Minya Solar PV Project. It will combine large-scale solar generation with utility-scale battery storage.
The project is located in Minya. It will combine 1.2 GWp of solar generation capacity with a 600 MWh battery energy storage system (BESS). The developers say it will become the largest solar power plant in Egypt and Africa, according to their project announcement.
The battery system will store electricity generated during the day. It will release that power during peak demand after sunset. The European Bank for Reconstruction and Development (EBRD) says storage should also strengthen grid stability and reliability.
EBRD arranges up to $265 million
The financing brings together development finance, commercial lending and concessional funding.
EBRD is arranging up to US$265 million of the package. This includes US$160 million from its own funds. It has also mobilised US$75 million from Bank of Jordan. The Clean Technology Fund will provide up to US$30 million in concessional financing through its Global Energy Storage Program, according to the EBRD financing announcement.
DEG, FMO and Proparco are providing additional financing. Their contributions form part of the overall debt package of up to US$566 million. The disclosed financing announcements do not specify their individual contributions.
Infinity Power and HAU Energy own Nefer Menya for Renewable Energy S.A.E., the special-purpose vehicle behind the project, according to the EBRD.
Twenty-five year power purchase agreement
The project also has a long-term electricity offtake arrangement.
Once operational, the project will sell electricity to the Egyptian Electricity Transmission Company. The two parties have a 25-year power purchase agreement (PPA), according to the EBRD.
The developers expect the plant to generate enough electricity to power more than 1.4 million homes annually. They also project annual carbon dioxide emissions savings of more than 1.5 million tonnes, according to their project announcement.
The combination of solar generation and battery storage sets Nefer Minya apart from conventional utility-scale solar projects. The batteries will retain some daytime generation for use after sunset. This matters because electricity demand can peak in the evening, the EBRD says.
Solar and storage investment expands in Egypt
The financing follows another solar-plus-storage investment involving HAU Energy. In April, EBRD provided a US$65 million construction bridging loan for a project at Benban near Aswan. The project combines a 200 MW solar plant with 120 MWh of battery storage, according to Egypt’s State Information Service.
Nefer Minya is considerably larger. Its battery system has a capacity of 600 MWh. EBRD describes the development as one of Egypt’s first projects to combine large-scale solar generation with battery storage, according to its financing announcement.
The project also supports Egypt’s wider renewable-energy programme. EBRD’s Energy Pillar under the Nexus of Water, Food and Energy initiative aims to facilitate 10 GW of new private-sector renewable capacity. It also aims to cut 5 GW of inefficient fossil-fuel capacity, according to the bank.
For Infinity Power, Nefer Minya supports a wider expansion target. The company aims to reach 10 GW of operational renewable-energy capacity by 2032. It currently reports approximately 1.3 GW of operational capacity across Egypt, South Africa and Senegal, according to its project announcement.
