The European Bank for Reconstruction and Development (EBRD) has partnered with Meridiam and Hassan Allam Utilities (HAU) to raise capital for HAU Energy BV, a new platform created to invest in renewable energy projects in Egypt and elsewhere in Africa.
According to EBRD, the investment is aimed at promoting private-sector participation in the Egyptian power sector and accelerating the roll-out of renewable energy projects.
The bank is providing equity investment of up to USD 75 million (EUR 68.5 million) in the platform, with a total project cost of 300 million.
The Project will target renewable energy projects, including the largest wind farm in Egypt, with a total capacity of 1.1 GW.
The bank’s investment in this first project will help reduce CO2e emissions by 2.8 million tCO2 per annum, with additional savings expected for the rest of the pipeline, it shared.
The investment was referred to as a cornerstone project under the 10 GW renewables programme of Egypt’s EBRD-led energy pillar of the Nexus on Water, Food and Energy (NWFE) initiative.
Thierry Déau, CEO of Meridiam, commented: “This long-term partnership and the renewable energy projects that will result from it will help support and accelerate Egypt’s energy transition programme.”
Meanwhile, Amr Allam, Co-CEO of Hassan Allam Holding, said the collaboration “should drive “substantial foreign investment” into Egypt,” boosting economic resilience and fostering sustainable growth.”
Nandita Parshad, EBRD Managing Director for Sustainable Infrastructure, added: “We are very proud to partner with Meridiam and HAU to support Egypt’s scaling up of renewables and accelerating its green economy transition. This strategic investment is set to facilitate the delivery of the 10 GW renewables programme under Egypt’s energy Pillar of the Nexus on Water-Food-Energy (NWFE) initiative.”