IFC, AMEA Power launch Egypt's first utility-scale battery storage system
The International Finance Corporation (IFC) announced on Sunday a landmark investment to support the development of Egypt's first utility-scale battery energy storage system (BESS), in partnership with AMEA Power and the Government of Egypt. The project aims to enhance grid resilience and support the country's transition to clean energy.
The IFC is providing a $72m debt package to Abydos Solar Project Company, a subsidiary of AMEA Power, to finance the integration of a 300 MWh BESS with the recently operational 500 MWac Kom Ombo solar photovoltaic plant in Aswan Governorate. The solar plant, which began operations in November 2024, was also financed by IFC and international partners in 2022.
The battery system, currently in the commissioning phase, is expected to be fully operational by July 2025. Once online, it will deliver approximately 100,000 MWh of energy annually and reduce CO₂ emissions by nearly 20,000 tons each year. This milestone marks the first BESS to be developed under Egypt's 4 GW Emergency Renewable Energy Program—an initiative designed to meet increasing electricity demand through clean, cost-effective sources while reducing reliance on imported natural gas.
'At AMEA Power, we are committed to transforming the energy landscape through innovation, speed, and local collaboration,' said Hussain Al Nowais, Chairman of AMEA Power. 'Achieving financial close for Egypt's first utility-scale BESS—following the successful launch of our 500 MW wind farm in the country—is a clear demonstration of our ability to deliver large-scale renewable energy projects. We're proud to support Egypt's energy transition and grid reliability.'
Makhtar Diop, Managing Director of IFC, emphasized the significance of the partnership: 'Meeting Egypt's rising energy demand—especially during peak summer months—requires bold, forward-looking solutions. This project delivers sustainable infrastructure today while laying the foundation for a more resilient, cleaner energy future. It showcases how strategic partnerships and advanced technologies can accelerate energy transitions.'
The BESS project aligns with Egypt's climate platform, the Nexus of Water, Food, and Energy (NWFE), and the World Bank Group's Country Partnership Framework for Egypt (FY23–27), which emphasizes job creation, human capital development, and resilience to environmental and economic shocks.
Since 2017, the World Bank Group and other development finance institutions (DFIs) have supported Egypt's private sector in developing 2.1 GW of solar and 2.8 GW of wind capacity. These efforts are expected to account for over half of Egypt's installed renewable energy capacity by 2027. IFC has played a key role in landmark initiatives such as the 1.4 GW feed-in-tariff (FiT) program at the Benban Solar Park, the 252 MW West Bakr Wind project, and AMEA Power's twin 500 MW Abydos Solar and Amunet Wind projects.
Since launching its operations in Egypt in 1975, IFC has invested and mobilized nearly $10bn in development projects and maintains an advisory portfolio valued at $25m. Its work in Egypt spans climate finance, fintech, infrastructure, healthcare, manufacturing, gender equity, and renewable energy.
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The airports are strategically located to enhance access to major cities, archaeological sites, and scenic destinations, contributing to Egypt's economy, which heavily relies on tourism. Additionally, improved airport facilities enable better cargo transportation, boosting trade activities. The airports are essential for Egypt's thriving tourism sector, significantly contributing to the economy. They provide access to historically rich areas like Cairo, Luxor, and Aswan, as well as coastal destinations such as Sharm El-Sheikh and Hurghada. By increasing flight availability and improving facilities, these airports can attract more international visitors, thereby enhancing economic revenue from tourism, creating jobs, and supporting local businesses. Infrastructural improvements such as modernizing terminal facilities, expanding runways, and upgrading baggage handling systems are crucial for enhancing airport efficiency. 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These initiatives not only promote cultural tourism but also enhance Egypt's profile as a destination for health tourism, leveraging its high-quality medical services. Our support is focused on developing frameworks that sustain long-term growth in tourism, benefiting both the economy and local communities. AO: How does the IFC view the role of Egyptian companies in the context of broader African development? MD: The IFC is keen to empower Egyptian firms to leverage their capabilities and expand their operations across the continent, particularly in the construction and infrastructure sectors. By building capacity and instilling best practices, we can position Egyptian companies to engage successfully in pan-African projects. This not only bolsters their growth prospects but also fosters regional collaboration and integration, ultimately advancing economic development across Africa. By facilitating partnerships and knowledge transfer, the IFC aims to create a robust ecosystem where Egyptian enterprises can thrive and contribute to the collective growth and prosperity of the continent. AO: How can the IFC help stimulate private sector engagement in renewable energy projects in Egypt? MD: The IFC recognizes the significance of renewable energy in Egypt's quest for sustainable economic growth and energy independence. By facilitating investments in solar and wind projects, which have vast potential given Egypt's geographical advantages, we aim to enhance energy resilience. Our strategy includes conducting feasibility studies, mobilizing public-private partnerships, and providing technical assistance to attract private developers. Moreover, we are working closely with the government to enhance regulatory frameworks and create incentives for private investments in renewables. By fostering an investment-friendly environment and supporting innovative financing mechanisms, such as green bonds, we can stimulate substantial private sector engagement in renewable energy, contributing to job creation and reducing carbon footprints. AO: What is the potential of the healthcare sector in Egypt, and how can the IFC contribute to its development? MD: The healthcare sector in Egypt holds immense potential for growth, especially as demand for quality healthcare services expands. The IFC plans to enhance collaboration with private healthcare providers to improve service delivery, accessibility, and affordability. We support investments in health infrastructure, medical technology, and healthcare professionals' training, aiming to uplift the country's overall healthcare standards. AO: What are the key aspects discussed during your meeting with the Egyptian minister of investment and external trade? MD: The minister was very keen on IFC's plans to ramp up its equity portfolio in Egypt and worldwide. He was also interested in hearing about our new guarantee offering through MIGA, the risk insurance arm of the World Bank Group. We plan to triple our guarantee level to $20 billion by 2030. The discussions also touched upon scaling up efforts on local currency financing and increased mobilization. Today, for each dollar IFC invests, we mobilize two from other investors. We aim to raise this ratio in the very near future. AO: How does the IFC support Egypt's efforts in the Micro, Small, and Medium Enterprises (MSMEs) sector? MD: The IFC supports Egypt's efforts in the MSME sector largely through banking solutions such as providing special credit lines. Additionally, the IFC is now working with non-banking financial institutions to reach more MSMEs and provide easier access to finance, which is a new direction in their strategy. Since 2020, IFC has committed more than $850 million to MSMEs in Egypt through both financial and non-financial banking institutions, including equity. It focused on those led by women, helping them build businesses that foster innovation and strengthen communities. AO: If you have a message at the end of this interview, what would it be? And to whom would you send it? MD: Now is an ideal time for reforms in Egypt. The world is looking at Egypt due to its stability and market trust. Once reforms aimed at simplifying processes and creating a level playing field are implemented, investments are expected to pour in. Follow us on: Facebook Instagram Whatsapp Short link:
