The European Bank for Reconstruction and Development (EBRD) is set to become a shareholder in Egypt’s Infinity Energy by making an equity investment of $60m.
Infinity Energy will use the investment for renewable energy development, electricity distribution projects and building new electric vehicle (EV) charging stations.
EBRD EMEA Energy director Harry Boyd Carpenter said: “We have had the privilege of working with the Infinity team since we lent to their Benban projects in 2017.
“We are very proud to take that partnership to the next level by becoming a shareholder in Infinity Solar Energy to further develop the renewable energy sector in Egypt.
“Egypt’s energy sector liberalisation and embrace of its renewable resources are creating incredible opportunities and Infinity is ideally placed to exploit these. We are also very pleased that through this investment we will further deepen our longstanding partnership with Masdar.”
Infinity Energy has also signed a joint venture (JV) agreement with Abu Dhabi Future Energy Company (Masdar).
According to the JV agreement, Masdar has agreed to invest in Infinity Energy’s renewable assets portfolio and collaborate with the company in its future renewable energy projects in Egypt and Africa.
The investment is expected to support Egypt’s energy transition plans that focus on increasing renewable energy capacity in the country with an objective to achieve 20% of its electricity generation from renewable sources by 2022 and 42% by 2035.
Over the years, the demand for renewable energy has increased in the country, especially from the commercial and industrial heavy electricity consumers due to its price factor.
Infinity Energy chairman and managing director Mohamed Mansour said: “With every joint venture comes new possibilities and opportunities. Today’s signing with EBRD comes both without exception.
“The entire Infinity company and myself are looking forward to this new venture, which holds great opportunities as added value to both parties.”
Last November, EBRD agreed to provide a €182.9m loan to the Egyptian Electricity Transmission Company (EETC) to improve the country’s electricity transmission network.