Dubai-based renewable energy company AMEA Power will invest $1.1 billion in Egypt to develop wind and solar energy capacities of 500 MW each.

The investment will take the company’s cumulative clean energy portfolio to 2 GW in Egypt. AMEA Power has a clean energy pipeline of nearly 6 GW across 15 countries.

The firm will develop, own, and operate the 500 MW solar plant located in the Aswan Governorate of Egypt.

It will be financed by the International Finance Corporation (IFC), part of the World Bank Group, the Dutch Entrepreneurial Development Bank (FMO), and the Japan International Cooperation Agency (JICA).

The 500 MW wind farm, located in the Red Sea Governorate, will be developed in partnership with Sumitomo Corporation, which will own 40% equity in the project. A consortium of banks is providing financing.

Both projects have secured Power Purchase Agreements with the Egyptian Electricity Transmission Company (EETC) and usufruct agreements with the New and Renewable Energy Authority (NREA).

“The Company is leading the development of renewable energy across Africa, which through its global and regional partnerships, will deliver clean energy to millions of people around the continent,” said Hussain Al Nowais, Chairman of AMEA Power.

Cheick-Oumar Sylla, IFC Regional Director for North Africa and Somali Peninsula, said, “Egypt has ambitious renewable energy goals, and we are proud to support AMEA’s expansion into Africa as well as its partnership with Egypt to accelerate the country’s renewable energy transition,” he added.

The Egyptian government is aiming at a 42% renewable share in electricity generation by 2035.

AMEA Power has recently made a pact with the Egyptian Government on the sidelines of COP27 in Sharm El Sheikh to develop a large-scale green hydrogen project.

This will serve as a feedstock to produce green ammonia, and once completed, the 1 GW plant is expected to produce 800,000 tons of green ammonia per year for export.

In 2020, the IFC announced that it had joined hands with the Agriculture Bank of Egypt to help Egyptian farmers access funding to purchase solar irrigation systems.

According to Mercom’s 9M and Q3 2022 Solar Funding and M&A Report, total corporate funding, including venture capital funding, public market, and debt financing in 9M 2022 stood at $18.7 billion, 18% lower than $22.8 billion raised in 9M 2021.