Übersicht
The project concerns the construction and operation of a 1.1 GWp solar photovoltaic (PV) plant with a co-located 50 MW/200 MWh battery energy storage system (BESS) located in Qena, Egypt.
The aim is to increase the production and storage of electricity from low-carbon sources (solar PV) and to address negative climate and environmental externalities — a market failure — through the reduction of carbon dioxide emissions and air pollution. The project contributes to Egypt’s Vision 2030 and Integrated Sustainable Energy Strategy (ISES) 2035, supporting the country’s commitment to achieve 42% of electricity generation from renewable sources by 2030. Additionally, financing this project is in line with the EIB’s lending priority objectives on energy (renewable energy), as well as the transversal objectives on climate action (mitigation) and environmental sustainability (pollution prevention and control). The project is expected to rely on a long-term corporate power purchase agreement (PPA) with Misr Aluminium Company (EgyptAlum) as the offtaker.
The project is Categorised A in accordance with the EBRD Environment and Social Policy 2024 requiring the preparation of environmental and social impact assessment report including public consultation and stakeholder engagement. The ESIA package for phase 1, inclusive of Non-Technical Summary ("NTS"), Environmental and Social Action Plan (ESAP), Stakeholder Engagement Plan ("SEP") and Environmental and Social Management and Monitoring Plan ("ESMMP") have been disclosed on the EBRD and promoter's websites on March 4th 2026. Public consultation of the ESIA package with the surrounding communities took place in October 2025 and included a public hearing in Nagaa Hammadi. The results of the impact assessment indicate limited air emissions, minimal wastewater generation, and minor use of hazardous materials. Management plans will include dust control measures and waste handling procedures. Dry cleaning of PV panels will be used during operations to the extent possible, and specific actions regarding PV and BESS material sourcing, maintenance, and disposal will align with good international practices. There are no protected areas in the vicinity of the project area and no significant impact on biodiversity nor ecosystems has been identified in the ESIA. Extensive engagement with local authorities and adjacent communities has been undertaken by the promoter and a dedicated Community Liaison Officer will be hired before construction starts, responsible for the implementation of the SEP and management of external grievances throughout the lifetime of the Project. As the two phases are adjacent in a desert environment, E&S issues are unlikely to be materially different for the two phases. During appraisal, EBRD will assess compliance of Phase 2 with their Environmental and Social Requirements 2024.
The promoter shall ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement. The project seems to be operating without exclusive or special rights, hence private sector procurement procedures should apply. This will be further assessed during appraisal.
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