The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $65 million to Hassan Allam Utilities (HAU) Energy to boost Benban Solar Park in Aswan.

HAU Energy, owned by the EBRD, HAU, and global investor Meridiam, was established in 2024 to focus on sustainable infrastructure in renewable energy, water, transportation, and logistics in Egypt.

The loan will support constructing and installing a 200 megawatt (MW) solar photovoltaic (PV) plant, alongside a 120 MWh battery energy storage system (BESS), to help expand Egypt’s renewable energy and battery storage capacity, according to a bank statement on Tuesday.

Once operational, the plant will help reduce carbon dioxide emissions by up to 280,000 tonnes annually. No timeline for completion was disclosed.

The targeted output will also facilitate the country’s plan to shift to a low-carbon economy, integrating solar power into the national grid and strengthening its energy security by “advancing affordable, clean energy and storage solutions,” according to EBRD’s Director of Sustainable Infrastructure in the Middle East and Africa Aida Sitdikova.

Benban Solar Park is financed by international financial institutions and development banks, including the International Finance Corporation (IFC), African Development Bank, and EBRD. It is a collaboration between 39 firms specialized in energy production, nine of which are international, the rest are Egyptian.

Extending over an area of 8,843 acres, the park is expected to be the world’s largest power plant. Its installed capacity has reached about 1,465 MW as of February 2026, with a long-term target of 2,000-2,100 MW in the near future.

The park includes around 30 solar power plants with a capacity of 50 MW each. A new 200-megawatt capacity is expected to be connected before September 2026, raising total capacity to around 1,735 megawatts, the equivalent of over 80 percent of Egypt’s High Dam’s output.

The loan will also be accompanied by a technical cooperation package provided by the EBRD, through the Gender and Economic Inclusion Technical Cooperation Framework, implementing two technical training programs that offer green skills training for young jobseekers.

Egypt has a plan to reduce its energy import bill and to have 42 percent of its energy generated from renewables by 2030.

Egypt aims to generate 42 percent of its energy from renewable sources by 2030 as part of efforts to reduce its energy import bill and accelerate the transition to a greener economy.

The energy sector is one of Egypt’s five priority sectors. The government has a plan to add 3,000 MW of solar capacity, along with 600 MW of battery storage, before summer 2026, raising total battery storage capacity to 1,100 MW.

Upgrading the national power grid, ensuring its stability and uninterrupted electricity supply by the summer, is a priority, as demand rises going into the hotter months. 

Egypt government targets increasing the electricity sector output to EGP 655.6 billion, and to allocate EGP 136.3 billion for renewable energy projects in the current FY 2025/2026, alongside financing from international financial institutions for private sector projects. 

The government targets electricity output of EGP 655.6 billion ($12,4 billion) and EGP 136.3 billion ($2.6 billion) in renewable investment in FY2025/26, alongside international financing for private projects.

As well as expanding coverage to 99.8 percent by the end of this FY, and raising annual power generation to 235 billion kilowatt-hours (kWh), up from 229 billion kWh two years ago.

Since the beginning of EBRD operations in Egypt in 2012, the bank has invested over 14.6 billion euros across 225 projects in the country.