BII commits over $300 Million to landmark renewable energy projects in Egypt

British International Investment (BII) has announced the signing of agreements exceeding $300 million to support two major renewable energy projects in Egypt, a 1.1 GW wind farm in the Gulf of Suez and an integrated solar photovoltaic and battery energy storage system (BESS) project of the same capacity, in collaboration with Norwegian firm Scatec.

With a total investment of $1.2 billion, the Gulf of Suez wind farm is poised to become Africa’s largest onshore wind energy project. It is projected to produce 4,500 gigawatt-hours of electricity annually, reducing carbon dioxide emissions by around 2.5 million metric tons each year.

BII is contributing $190 million as part of a larger $704 million debt financing package, which includes participation from several development finance institutions such as the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), the German Development Finance Institution (DEG), the OPEC Fund for International Development, and the Arab Fund for Economic and Social Development.

The project is a key part of Egypt’s NWFE (Nexus of Water, Food, and Energy) program and is expected to create over 10,000 direct and indirect energy-supported jobs.

BII also signed an agreement to finance Egypt’s first fully integrated solar PV and battery energy storage project (BESS), in partnership with Scatec, AfDB, and EBRD.

The total cost of this project stands at $479.1 million—roughly 80% of its capital expenditure—and it will deliver 1.1 GW of solar power along with 200 MWh of battery storage capacity.

To support the commercial viability of the BESS component, BII is offering a concessional loan of $100 million and a $15 million grant. This financial structure is designed to lower the capital cost of battery storage, attract private sector investments, and set a precedent for future agreements in the region.

With a current investment portfolio exceeding $708 million in Egypt, the country stands as a strategic partner for BII.

These new agreements reinforce BII’s ongoing commitment to advancing the region’s climate agenda. The projects align with BII’s climate strategy in North Africa, which emphasizes the importance of scalable, innovative renewable technologies to strengthen climate resilience.

The announcement comes as Egypt’s Ministry of Planning, Economic Development, and International Cooperation released the second follow-up report on the NWFE program.

The energy pillar of the program aims to add 10 GW of renewable energy capacity with $10 billion in investments, and to phase out 5 GW of fossil fuel-based generation by 2028.

Over the past two and a half years, $4 billion in concessional financing has been mobilized to implement 4.2 GW of renewable energy capacity, with participation from leading companies including ACWA Power (Saudi Arabia), Masdar and Infinity, Scatec (Norway), AMEA Power (UAE), Orascom Construction, and Hassan Allam Utilities.