EBRD lends $65 million to HAU Energy for solar and storage project in Egypt

The European Bank for Reconstruction and Development is expanding its support for Egypt’s clean energy push with a $65 million loan to finance a new solar and battery storage project. 

The funding targets a key gap in Egypt’s power system as demand rises and the country leans more on renewable energy.

Officials say combining solar generation with storage will help keep electricity supply steady, even when sunlight is limited. 

The investment comes as Egypt works to cut its reliance on imported fuels and manage exposure to global energy price swings.

It also reflects growing interest from international lenders in backing large-scale clean energy projects across Africa. 

At the center of the plan is the Benban Solar Park, one of the region’s largest renewable energy hubs, which continues to attract new capital and expand its capacity.

Solar expansion with storage support 

The loan will support Hassan Allam Utilities through its unit HAU Energy in developing a 200-megawatt solar photovoltaic plant alongside a 120-megawatt-hour battery energy storage system. 

The addition of battery storage is expected to improve how solar power is delivered to the grid, helping to balance supply and demand.

It also allows excess electricity generated during the day to be stored and used later, reducing pressure on the grid during peak hours.

Emissions cuts and energy security 

Once operational, the project is expected to cut carbon dioxide emissions by up to 280,000 tonnes a year.

That supports Egypt’s climate goals while helping the country build a more reliable and flexible energy system. 

The project also fits into a broader government plan to diversify energy sources.

By increasing the share of renewables, Egypt aims to strengthen energy security and reduce exposure to fuel import costs.

Skills, jobs and long-term investment 

Alongside the financing, the EBRD will support training programs under its Gender and Economic Inclusion framework.

These programs are designed to help young people gain practical skills needed in the renewable energy sector. 

The initiative also aims to increase opportunities for women by improving access to technical roles and leadership positions, an area where participation has historically been limited. 

HAU Energy, backed by Meridiam, Hassan Allam Utilities and the EBRD, was set up in 2024 to focus on renewable investments.

The company is expected to play a larger role as Egypt builds out its clean energy capacity. 

The latest deal adds to the EBRD’s long-standing presence in Egypt, where it has invested more than $17 billion in over 200 projects since 2012, supporting sectors ranging from infrastructure to energy.