Egyptian Financial Group Hermes Holding is considering launch of a US$200 million renewable energy fund to spur wind and solar projects in Egypt and the Arab region, it said in a statement Sunday.
The firm further added that it led the acquisition of a 49 percent stake last year in a 330 megawatt portfolio of wind assets owned by EDPR in France.
EFG-Hermes, one of the leading investment banks in the Arab World, further said in its statement that Egypt offers an investment opportunity of at least $6 billion to 2018 in the renewable energy sector including wind and solar under the feed-in-tariff scheme.
“Facing growing energy demands and pressure on fuel supplies for conventional energy generation, Egypt is focusing on renewable energy as a viable and effective source to add to the gas-dominated energy mix. Egypt’s New and Renewable Energy Authority aims to generate 20 percent of its power from renewables by 2020.”
Egypt will need to add about 8 gigawatts, foreseen to be split between 5.5 gigawatts of wind power, and 2.5 gigawatts of solar power according to EFG-Hermes.
As a result, EFG Hermes predicts a debt and equity investment opportunity of approximately $6 to 7 billion for Egypt’s feed-in-tariff renewable energy programme to 2018.