IFC, a member of the World Bank Group, and the Egyptian Banking Institute co-hosted a workshop in Cairo to highlight the investment opportunities emerging in Egypt in renewable energy, promote financing for such projects and encourage best practice in the field.
The pioneering one-day training session, supported by the Danish Government and held in partnership with Egypt’s Ministry of Electricity and Renewable Energy, Eversheds, DNV-GL, Scatec Solar and Acciona, attracted more than 100 banking executives. Renewable energy projects in Egypt are expected to require $8 billion in capital investment over the next four years, presenting a significant opportunity for investment.
But availability of financing for the anticipated 4300MW of new renewable energy generation capacity may be a critical bottleneck unless both local and international financial institutions are able to make financing available.
Dr. Ola el Khawaga, Director of the Research and Awareness Department at the Egyptian Banking Institute said: “As the official training arm of the Central Bank of Egypt, we aim to promote training and apply international best practices in Egypt’s financial institutions. We were delighted to co-host this workshop to promote financing for the renewable energy sector, which is a key sector for Egypt’s economy.”
“Governments in the region are increasingly realizing the importance of renewable energy to reduce electricity shortages and mitigate climate change, but they need support from the private sector. Our aim is to help financial institutions see the growing and profitable demand for investments in renewable energy and provide the right products to support and encourage this,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa.
Attendees were provided with information on entering the renewable energy financing sector in Egypt, structuring the right financial packages, and reaching renewable energy targets introduced by the Egyptian government. In addition, they were given an overview of the sector and current technology, and explored case studies on existing solar and wind power projects.
At the end of the workshop, 80 percent of respondents agreed that their financial institution would be able to offer products to finance renewable energy projects in Egypt.
Since 2005, IFC has invested more than $11 billion in renewable energy generation and energy efficiency projects globally. It plans to invest between $1.2 billion and $2 billion in Egypt over the next four years on a range of projects, including in the renewable energy sector.