The African Development Bank (AfDB) Group approved three major loans worth $55m in order to finance three solar PV projects. This comes under the second round of Egypt’s feed-in- tariff (FiT) programme. The three beneficiaries of the loans are Alcazar Energy Egypt Solar 1 (Alcazar I), Delta for Renewable Energy (Delta) and Shapoorji Pallonji Energy Egypt (SP).
The three of them will enjoy a tenor of 18 years. Both Alcazar I and Delta will be granted a loan worth $18m. The remaining $19m will be granted to SPEE, which includes a $7m concessional financing from Global Environment Fund (GEF). With a daily sunshine throughout the year that averages between nine and eleven hours, Egypt has one of the best solar resources worldwide.
Moreover, its global horizontal irradiation of between 2,230-2,330 kWh/m2 per year and its low humidity make the country an ideal place for solar power investors. To meet the ever-increasing demand for energy, to diversify the sources of energy, and to improve the power sector’s environmental and climate footprint, the country developed a regulatory framework to develop the renewable energy capacity. The aim of the nation is that by 2022 20% of its energy generation will be harnessed from renewable sources.
