IFC, AMEA Power partner to launch Egypt’s 1st utility-scale battery storage project

The International Finance Corporation (IFC) announced an investment agreement on Sunday to support Egypt’s first utility-scale battery energy storage system (BESS), in partnership with AMEA Power and the Egyptian government to advance the country’s clean energy ambitions.

IFC’s $72 million debt package to AMEA Power’s subsidiary, Abydos Solar Project Company, is set to finance the integration of the 300MWh BESS into the newly commissioned 500MWac solar photovoltaic power plant in Kom Ombo, Aswan Governorate. The solar power plant, also financed by IFC and international partners in 2022, has been operational since November 2024.

The BESS integration marks Egypt’s first project to be implemented under the Egyptian government’s fast-track 4GW Emergency Renewable Energy Programme, which aims to meet growing electricity demand through clean and competitive sources and reduce reliance on imported natural gas. The BESS, currently under commissioning, is expected to come online by July 2025. It will deliver around 100,000 MWh and reduce nearly 20,000 tons of CO2 emissions annually, helping the North African country meet its target to cut emissions from its power sector by 37 percent.

“Achieving financial close for Egypt’s first utility-scale BESS project—following the successful launch of our 500MW wind farm in Egypt—is a clear demonstration of our ability to deliver large scale renewable energy projects. We are proud to play a leading role in supporting Egypt’s energy transition and grid resilience.” said Hussain Al Nowais, chairman of AMEA Power.

For his part, Makhtar Diop, IFC’s Managing Director, said the investment “delivers sustainable infrastructure that strengthens the grid today while laying the foundation for a cleaner, more resilient energy future in Egypt.”

“This is modelling efficient transition – one that brings value for the country through advanced technologies and skills.”

The project lies under Egypt’s country-led climate platform, the Nexus of Water, Food, and Energy (NWFE) as well as the World Bank Group’s Country Partnership Framework for Egypt (FY23–27), which prioritises job creation, human capital development, and resilience to economic and environmental shocks.

The signing took place in Cairo in the presence of Prime Minister Moustafa Madbouly and Minister of International Cooperation Rania Al-Mashat, on the sidelines of the Development Financing to Foster Private Sector-Led Growth & Jobs conference.

The energy component of the NWFE platform aims to accelerate the retirement of inefficient thermal power plants and scale up renewables through targeted investments and blended finance. Egypt has committed to sourcing 42 per cent of its electricity from renewable energy by 2030.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama