BII backs Egypt’s transition into renewable energy hub via $300M agreements

Updated 7/2/2025 12:57:00 PM

Arab Finance: British International Investment (BII), the UK’s development finance institution and impact investor, signed agreements at a combined value exceeding $300 million to support two renewable energy projects in Egypt, according to an emailed press release.

These projects are the 1.1-GW Gulf of Suez Wind Farm and a 1-GW integrated solar and battery storage project with Scatec.

The deals come as part of BII’s investment plan to boost Egypt’s energy transition and build climate-resilient infrastructure that stimulates growth in North African countries.

The Gulf of Suez Wind Farm marks Africa’s largest onshore wind development, with total investments of $1.05 billion. It is expected to generate over 4,300 gigawatt-hour (GWh) annually, helping to eliminate 2.2 million tons of CO? emissions yearly.

BII’s $190 million investment comes within a broader $707 million in long-term debt financing with a consortium of development finance institutions (DFIs).

The consortium includes the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), the German Investment and Development Company (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

The project builds on Egypt’s Nexus of Water, Food & Energy (NWFE) program and will create over 10,000 jobs, placing it in the top 30% of BII’s power portfolio in terms of employment-to-cost ratio.

Additionally, BII inked a contract to co-finance Egypt’s first integrated solar photovoltaic (PV) and battery energy storage system (BESS), in partnership with Scatec, AfDB, and EBRD.

The $475.6 million project, which represents 80% of the total capital cost, will deliver 1 GW of solar PV capacity and 200 MWh of battery storage.

BII will provide a $100 million concessional loan and a $15 million grant to cut the cost of the BESS component and make the project more viable, attracting private investment and setting a model for future deals.

Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, commented: "Through our capital partnerships, we are proud to deliver new infrastructure that will provide affordable and reliable, low-carbon power and unlock thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt’s renewable energy ambitions and the resilience of its wider economy."

Egypt is a key partner for BII, with an updated portfolio size of more than $708 million, reflecting an ongoing commitment to the region’s climate agenda.