In international news, the European Bank for Reconstruction and Development (EBRD) and two other global financial institutions on Tuesday announced the creation of a $250 million funding framework for private sector renewable energy development in the Middle East and North Africa region, Clean Technica reports.
Provision of funds shared
EBRD has partnered with the Climate Investment Funds, an initiative between multilateral development banks to bridge the financing and learning gap ahead of the next international climate change agreement, on the initiative.
Climate Investment Funds’ programme the Clean Technology Fund will provide $35 million while a third partner – the Global Environment Facility – will provide $15 million.
EBRD’s Nandita Parshad said: “For the first time in this region the private sector is now able to produce and sell clean renewable energy on a commercial basis competing head to head with gas and oil-fired generation.
“We are grateful to our partners in this programme, the Clean Technology Fund and Global Environment Fund and the Union for the Mediterranean for their support in catalyzing this development.”
The funds will be made available through debt and equity funding and will benefit Morocco, Egypt, Tunisia, and Jordan.
The first project to receive funding under this framework will be a proposed 120MW Khalladi wind farm near Tangiers in Morocco, which is being developed by a special purpose company jointly owned by ACWA Power, Argan Infrastructure Fund, and UPC Renewables North Africa.
Khalladi project has also received sponsorship worth $124 million from Moroccan commercial bank BMCE Bank.
Mafalda Duarte, programme manager for the Climate Investment Funds, also commented: “We hope that this programme and the types of projects it finances will serve as a blueprint for other regions seeking to promote private renewable energy investments.”
Renewable energy in North Africa
Lately Egypt has emerged as a promising renewable energy market with project developers from around the world showing interest to set up large-scale renewable energy projects in the country.
Scatec Solar recently signed an agreement to set up 250MW solar power projects, while ACWA Power, in partnership with Masdar Group, plans to set up 2GW of solar and wind energy projects.
Terra Solar and SkyPower have also announced plans to make significant investments in Egypt.
According to Clean Technica, Tunisia aims to increase electricity generation to 25% by 2030, through the use of renewable energy sources.