The European Bank for Reconstruction and Development (EBRD) is providing an initial $4.2 million loan to TAQA PV for Solar Energy, TAQA Arabia’s renewable energy subsidiary. This loan will support one of the first green private-to-private projects in the country and is part of a financing package of up to $10 million to expand TAQA Arabia’s private-to-private renewable energy business. The funds from EBRD will be used to finance the construction and operation of a 6 MWp solar PV project located at Dina Farms, the largest dairy farm in Africa, located about 80 km from the Egyptian capital Cairo.
TAQA PV for Solar Energy has signed a 25-year PPA with Dina Farms, under which the company will sell all the generated solar power to the dairy farm, to cover part of its energy consumption with clean energy. This is EBRD’s first such financing in the country which involves direct electricity supply from a privately owned generator to a private off-taker through a corporate PPA. To date, the EBRD has invested more than €7 billion in 125 projects in Egypt, in areas like the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as in the power sector, municipal water and wastewater services and transport.
This is the EBRD’s first project in Egypt under the Southern and Eastern Mediterranean Private Renewable Energy Framework (SPREF). SPREF supports the development and financing of innovative business models and mobilissation of private finance for renewable energy projects in the SEMED region. The framework is supported by the Global Environment Facility and the Clean Technology Fund.
TAQA PV for Solar Energy is a project company incorporated in Egypt for the purposes of developing the private-to-private renewable energy business of TAQA Arabia SAE, an Egyptian joint stock company. TAQA Arabia and Dina Farms are part of the core subsidiaries of Qalaa Holdings that builds responsible and sustainable businesses that create social and economic value, and operates in sectors such as energy, cement production, agrifoods, transport and logistics, mining, printing and packaging.