IFC has recently partnered with AMEA Power, a renewable energy developer, and Kyuden International Corporation of Japan to build a large-scale solar power plant and battery energy storage system (BESS). IFC said while sharing project details in a press release, about leading the $571.8 million debt package. The package would include funds from its own account.
Additionally, it also told about mobilizing funds from partners to the project company, Abydos For Renewable Energy, to finance the construction and operation of Abydos II, a 1,000-megawatt solar PV power plant with an integrated 600-megawatt-hour (MWh) battery energy storage system. Abydos II will be located in Aswan Governorate, southern Egypt.
About the funding
This funding will increase access to reliable energy in Egypt and will provide clean energy at one of the lowest tariffs in Egypt. Abydos II will deliver more than 3 million MWh annually, with the BESS dispatching emission-free electricity during peak demand at night. It will also reduce carbon emissions by nearly 1.6 million tons annually, helping Egypt meet its target to cut emissions from its power sector by 37 percent and its national goal of achieving 42% renewable energy usage by 2030. Construction of Abydos II is expected to create more than 4,000 jobs during construction, with more than 95% of the roles for Egyptians.
IFC is providing a senior loan of $83.5 million and has mobilized and structured $465.2 million from international partners, including Italy’s Cassa Depositi e Prestiti (CDP), implementing the Mattei Plan for Africa, Dutch Entrepreneurial Development Bank (FMO), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), British International Investment (BII), OPEC Fund for International Development, and Europe Arab Bank (EAB).
In addition, two facilities are providing concessional blended finance to help de-risk the project and attract private investment. The Clean Technology Fund, a program of the Climate Investment Funds, is extending a concessional senior loan of $20 million, while the MENA Private Sector Development Program, supported by the Government of the Netherlands, is providing a concessional senior loan of $3.1 million. IFC is the implementing entity for both programs.
About The Project
This new South-South investment deepens the partnership between IFC and AMEA Power to advance Egypt’s transition to green energy, following the twin 500MW Abydos Solar and 500MW Amunet Wind projects in 2022 and the financing of Egypt’s first utility-scale battery energy storage system (BESS) earlier this year. Additionally, this project marks Kyuden International Corporation of Japan’s first investment in Egypt.
IFC will also provide AMEA Power with guidance to mitigate and manage environmental and social (E&S) risks, including processes to oversee safe and healthy working conditions, and manage the project works in line with IFC’s Performance Standards.
The project aligns with Egypt’s country-led climate platform, the Nexus of Water, Food, and Energy (NWFE) – and falls under the Government of Egypt’s fast-track 4GW Emergency Renewable Energy Program, which aims to meet growing electricity demand through clean and competitive sources and reduce reliance on imported natural gas.
The project is also aligned with the World Bank Group’s Country Partnership Framework for Egypt (FY23–27), which prioritizes job creation, human capital development, and resilience to economic and environmental shocks – and contributes to the overall goals of Mission 300, a joint initiative between the World Bank Group and the African Development Bank to bring African governments, the private sector, and development partners together to deliver affordable power, expand electricity access, boost utility efficiency, attract private investment and improve regional energy integration that drives economic transformation.
Leadership View
Hussain Al Nowais, Chairman of AMEA Power, said: “This project reflects AMEA Power’s ability to move with speed and scale. Given the strategic importance of this renewable energy project for Egypt’s energy system, we initiated construction at the earliest opportunity, advancing delivery even before project finance was finalised.”
Takashi Mitsuyoshi, Chief Executive Officer of Kyuden International Corporation, said: “We are honored to be part of this landmark project in Egypt and to collaborate with IFC and AMEA Power. Together, we are committed to delivering this project successfully. We believe it will contribute significantly to Egypt’s clean and sustainable development and accelerate the transition to renewable energy.”
“Our strategic partnership with AMEA Power is delivering high-quality energy projects with lasting development impact in Egypt and beyond,” said Cheick-Oumar Sylla, IFC’s Division Director for North Africa and the Horn of Africa.
