AMEA Power, Japan’s Kyuden International Corporation, and the International Finance Corporation (IFC) have joined forces to develop a groundbreaking solar and battery storage project in Egypt’s Aswan Governorate. This initiative, valued at over $700 million, is set to become Africa’s largest single-asset renewable energy and battery storage development. The project comprises a 1GW solar photovoltaic plant paired with a 600MWh battery energy storage system, aiming to bolster Egypt’s energy security and strengthen its power system resilience.
The project, with a commercial operation date targeted for June 2026, is jointly owned by AMEA Power (60%) and Kyuden (40%). Acknowledging the project’s strategic importance, AMEA Power began early construction activities even before finalizing all project financing. Hussain Al Nowais, AMEA Power chair, emphasized the project’s significance, stating, “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 finalized.”
Financing for the project includes a senior debt package of about $570 million, arranged by the IFC. The funding comprises IFC’s own account and resources mobilized from international partners such as Cassa Depositi e Prestiti, FMO, DEG, British International Investment, the OPEC Fund for International Development, and Europe Arab Bank. The financing structure is enhanced by concessional blended finance, with loans from the Clean Technology Fund and the MENA Private Sector Development Programme, backed by the Government of the Netherlands.
Once operational, the project is anticipated to produce over three million megawatt hours of renewable electricity each year, sufficient to power around 500,000 households. It is also expected to cut down 1.6 million tonnes of carbon dioxide (CO₂) emissions annually. The construction phase is projected to create more than 4,000 jobs, with local workers filling over 95% of the roles.
This initiative builds on the established partnership between AMEA Power and IFC in North Africa, following the commissioning of the 500MW solar plant in Aswan and the 500MW wind facility in Ras Ghareb. Additionally, this represents Kyuden’s first investment in Egypt. Takashi Mitsuyoshi, Kyuden’s chief executive officer, expressed his commitment, saying, “We are honoured 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.”
The project’s development could significantly influence the renewable energy sector in Africa. By setting a precedent for large-scale solar and battery storage projects, it may attract more investments and partnerships, fostering regional energy security and sustainability. The emphasis on local employment and the reduction of carbon emissions highlight the project’s potential to drive economic growth and environmental stewardship. As the energy sector continues to evolve, such initiatives could pave the way for innovative solutions and collaborative efforts, shaping the future of renewable energy in Africa and beyond.