Egyptian Banks Step Up with $500 Million Financing for Solar and Wind Energy Expansion

is embarking on a mission to significantly boost its and production, aiming to reach 6.8 gigawatts within the next year. This initiative, which includes 1.6 gigawatts from wind power and 1.9 gigawatts from solar power plants, has garnered support from three prominent local banks: QNB Al Ahly, Agricultural of Egypt, and HSBC.

The primary focus of this support is the financing of two 100-megawatt solar stations located in the New Valley Governorate. These stations are poised to play a pivotal role in serving the energy needs of Egyptian Smart Engineering Solutions (SES) and the German company Freneil.

The estimated total investment cost for this endeavor stands at a substantial $500 million. To facilitate this ambitious project, approximately 70% of the required funds are anticipated to come from external sources for the import of essential station supplies. The remaining financial support will be secured through local banking institutions.

The project is rapidly advancing, with the financial closure expected to be achieved within the next two months. The construction phase is scheduled for completion over the course of the next two years. Notably, these solar stations will utilize solar concentrators, which will focus sunlight on brine-filled pipes, elevating their temperature to an impressive 600 degrees Celsius. This superheated brine will then be used to operate power station turbines.

The New Valley Governorate has played a crucial role in supporting the project by providing the necessary land for its implementation. Furthermore, a new entity is in the process of being established in partnership with the German firm Fresnel to oversee the successful execution of this ambitious energy project.

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