Infinity Power lands $74m loan for Egyptian wind project

From the newsletter

The European Bank for Reconstruction and Development (EBRD) has approved a $74.1 million loan for the 200 MW Ras Ghareb wind farm in Egypt, a joint venture between Infinity Power and Masdar. This is a big step in accelerating Infinity Power’s ambition to scale its renewables portfolio from its current 1.3 GW in operation to 10 GW across Africa by 2030.

• The funding reflects a broader trend in Egypt and across Africa, where renewable energy projects are consistently attracting fresh capital. Successful investor exits have also boosted confidence and drawn in new financing.

• Egypt has implemented policy reforms that have unlocked global finance, making it one of Africa’s top clean energy hubs. Renewables Rising databases shows at least $6.6 billion in funding and commitments since January

More details

• The financing package combines a $60.7 million senior loan from the EBRD, a $3.38 million concessional loan from the Green Climate Fund (GCF), and a $10 million investment grant. The project also has backing from international partners Proparco and JICA, highlighting the role of blended finance in mobilising global capital for Africa’s clean energy future.

• The EBRD has been central to Egypt’s renewable energy story since it began investing in 2015. Today, it is the country’s largest institutional investor, with green economy financing at the core of its strategy. A flagship example is its $1.1 billion investment in the 1.8 GW Benban solar park, which added the equivalent of 2.65% to Egypt’s total installed capacity.

• Beyond individual projects, the EBRD has shaped policy reform that lowered the cost of clean energy. It supported Egypt’s transition from feed-in tariffs to competitive solar auctions, which drove tariffs to record lows, such as $0.0247/kWh for the Kom Ombo solar project, making renewables cost-competitive with fossil fuels.

• This policy environment has attracted strong investor interest in both energy projects and solar manufacturing. Chinese companies have entered aggressively, establishing solar manufacturing plants, targeting Egypt’s domestic market and the nearby EU export market. Gulf investors have also stepped up, with Masdar planning a massive 10 GW wind farm, set to be one of the largest in the world. Similarly, AMEA Power has commissioned a 500 MW solar PV plant in Aswan and is advancing one of Africa’s largest solar-plus-storage projects.

• Energy security remains a pressing issue in Egypt. Earlier this year, the country faced disruptions in fuel supply as regional conflict escalated, forcing it to seek alternative short-term fuel imports. The crisis reinforced the urgency of scaling renewables and diversifying into low-carbon sources such as nuclear. Now the country aims to generate 42% of its electricity from renewables by 2030 for its energy security.

• So far this year, the country has added 2.9 GW of renewable energy capacity. Another 3.1 GW is under construction, while 4.7 GW is awaiting financing before moving to the construction phase. The country is also advancing hybrid projects, with a combined capacity expected to exceed 4 GW, aimed at strengthening grid stability.

• At the same time, Egypt is upgrading its transmission infrastructure and extending it to countries such as Saudi Arabia, preparing to tap into regional electricity export markets once these projects come online.

Our take

• Egypt’s shift from feed-in tariffs to competitive auctions has lowered costs and attracted investors. Other African countries like Kenya and Ghana are exploring similar reforms, which could be a game-changer in securing financing for large-scale projects.

• Demand for clean electricity to power green industries is set to grow. Egypt is already positioning itself to tap into export markets in the Middle East. Energy companies like Infinity Power should view this as an opportunity to invest heavily in mega projects.

• To make renewables even more attractive, African governments should phase out fossil fuel subsidies and introduce taxes on them, redirecting the revenue into clean energy. This would remove the unfair advantage fossil fuels have long enjoyed and make it easier for renewables to compete.