Ahmed Kamel – Egypt Daily News
Egypt has finalised a landmark agreement for a $572 million solar power project backed by United Arab Emirates investors and international partners, marking a significant expansion of Gulf-financed clean energy infrastructure in North Africa.
The deal, signed this week, brings together Dubai-based renewable developer AMEA Power and the International Finance Corporation (IFC), part of the World Bank Group, to fund and build a major utility-scale solar power plant paired with battery energy storage in Aswan, in southern Egypt. The financing package includes senior debt and mobilised funds from global development institutions, and supports Egypt’s broader strategy to diversify its energy mix and reduce carbon emissions.
The project, known as Abydos II, is being developed with a 1,000 megawatt (MW) solar array and an integrated 600 megawatt-hour battery storage system. When fully operational, it is expected to generate more than three million megawatt-hours of emission-free electricity annually, enough to power more than 500,000 homes and cut roughly 1.6 million tonnes of carbon dioxide emissions each year. Construction is also projected to create over 4,000 jobs, with more than 95 percent allocated to Egyptian workers.
Project leadership reflects a broader pattern of UAE involvement in Egypt’s renewable sector. AMEA Power, which holds a majority stake in the development alongside Japanese partner Kyuden International Corporation, has been active in the region, including commissioning Egypt’s largest standalone solar projects in recent years. The firm’s chairman emphasised the strategic importance of accelerating clean-energy capacity to meet domestic electricity demand and bolster sustainable growth.
The financing arrangement led by IFC with contributions from Cassa Depositi e Prestiti (Italy), FMO (Netherlands), DEG (Germany), British International Investment, the OPEC Fund for International Development, and Europe Arab Bank, includes concessional and blended finance aimed at lowering overall costs and risk.
Egypt’s government has highlighted the deal as a major milestone in its renewable energy rollout, aligning with national targets to cut emissions from the power sector by 37 percent and raise the share of renewables to 42 percent by 2030. It builds on a growing portfolio of solar and wind developments across the country, including partnerships with other international financiers and developers on projects designed to strengthen grid resilience and energy security.
The UAE’s role in Egypt’s clean energy transition also reflects broader Gulf engagement in the renewable sector. Emirati firms such as Masdar have previously signed memoranda of understanding on multi-gigawatt solar developments in Upper Egypt, including floating solar installations and major ground-mounted arrays, as both countries work to balance energy demand with climate commitments.
Egypt’s push toward renewables comes amid challenges in its traditional energy landscape. Domestic natural gas production has declined in recent years, prompting increased imports and underscoring the urgency of developing alternative power sources. Recent agreements, including large-scale gas supply deals with neighbouring producers, illustrate the country’s interim reliance on fossil fuels even as renewables take on greater prominence.
Analysts view the new UAE-backed solar investment as part of a larger Middle East and North Africa (MENA) trend, where Gulf capital and expertise are increasingly mobilised to support renewable energy growth across the region. This collaboration not only helps Egypt address rising electricity demand but also positions Gulf-Egypt partnerships as models for climate-aligned investment in emerging markets.
