The European Bank for Reconstruction and Development (EBRD) has announced an additional $40 million equity investment in Infinity Power, Egypt’s largest renewable energy company and a longstanding EBRD client, to boost clean energy across Africa. This move signals strong continued confidence in the company’s trajectory and its pivotal role in the continent’s green transition.
Expansion and Impact of Egypt clean energy investment
This latest injection of capital will help Infinity Power expand its impressive portfolio of wind and solar projects in Egypt and other African nations. Key projects set to benefit include the massive 1.1 GW Ras Ghareb wind project and the 200 MW Kom Ombo solar project in Egypt, as well as the 200 MW Sirban solar project in South Africa.
Infinity Power, a joint venture between Egypt’s Infinity and the UAE’s Masdar, has rapidly become a dominant force in Africa’s renewable energy sector. Since its founding in 2020, the company has grown its portfolio to over 7.5 GW of wind and solar projects spanning Egypt, South Africa, and Senegal. This builds on a history of pioneering work, including the development of Egypt’s first private wind farm in the Gulf of Suez. This track record of success is exemplified by the company securing $153 million in financing from the EBRD, Proparco, and others for a 200MW Ras Ghareb wind farm.
Currently, Infinity Power is constructing a 200 MW solar plant in Kom Ombo, a 1.1 GW wind farm in Ras Ghareb, and a 500 MW wind farm in Jebel al-Zayt. These projects are critical components of Egypt’s strategy to generate 42% of its electricity from renewable sources by 2035.
EBRD’s Increased Investment in Egypt clean energy investment
The EBRD has been a cornerstone of support for renewable energy in Egypt. Since 2012, the bank has invested over $12 billion in the country, with a substantial focus on green energy. This latest investment in Infinity Power is a clear extension of the bank’s broader strategy to promote sustainable development, which includes a wide range of Green Economy Transition (GET) investments.
Beyond its partnership with Infinity Power, the EBRD has been instrumental in other landmark projects. It was a key supporter of the Benban Solar Park, one of the world’s largest solar installations, and has also provided crucial financing for wind farms in the Gulf of Suez. More recently, the bank has backed innovative ventures like Egypt’s first large-scale solar energy and battery storage project, demonstrating a commitment to next-generation energy solutions. As a key partner, the EBRD’s financial support is vital for realizing Egypt’s impressive 2030 vision for solar energy.
Egypt’s Renewable Energy Ambitions for clean energy investment
Egypt is making remarkable strides in transforming its energy sector. The nation has set ambitious targets to dramatically increase its renewable energy capacity and lessen its reliance on fossil fuels, aiming for a 42% renewable electricity share by 2035, a significant jump from 14% in 2021.
To meet these goals, the Egyptian government is actively fostering collaboration between international organizations and private companies. This pro-investment climate, featuring tax incentives and streamlined permitting, has turned the country into a hotbed for green energy development. The sector’s dynamism is evident in the activity of various players receiving an impressive 2024 investment boost. The country’s growing appeal is further highlighted by the significant investments from leading international firms like Scatec Solar and TotalEnergies, which are fueling Egypt’s unique momentum in the solar space.
The EBRD’s investment in Infinity Power will significantly contribute to these national efforts, helping Egypt meet its targets, reduce its carbon footprint, create jobs, and stimulate regional economic growth.
Challenges and Opportunities for Egypt clean energy investment
Despite significant progress, Egypt’s renewable energy sector faces hurdles. A primary challenge is the need for substantial investment in grid infrastructure. Expanding the national grid and developing new transmission lines are essential to connect new, large-scale renewable projects and ensure stable power delivery.
Another critical area is the need for continuous investment in research and development to enhance the efficiency and cost-effectiveness of renewable technologies. As Egypt competes with other regional powers in the green energy race, a deep understanding of the basics of solar panel manufacturing and other technologies is crucial for maintaining a competitive edge.
The EBRD’s investment is a powerful catalyst for Egypt’s renewable energy ambitions. The funding will accelerate the development of new wind and solar capacity, pushing the country closer to its climate goals. By addressing challenges in infrastructure and technology, Egypt can secure the long-term success of its green transition and solidify its position as a leader in renewable energy.
If you’re inspired by these large-scale developments and want to understand how solar energy works on a deeper level, consider exploring our free e-course to learn more about the technology powering this revolution.