Japan backs Egypt solar project with $89m loanby Paromita Dey on Feb 23, 2016
Japanese government will lend $89m to support the construction of a large-scale solar PV and storage project near the city of Hurghada in Egypt.
The project will comprise a 20MW solar PV plant and a 30MW storage facility, which will utilise several different types of battery technology, including lithium-ion and sodium-sulfur batteries.
For its part, Egypt’s government will hold a public tender for the project exclusively for Japanese companies that have demonstrable battery technologies ready to go.
Sumitomo Electric Industries and NGK insulators are two such companies that are expected to vie for contracts, thus opening the floodgates for more Japanese investment in the growing MENA region.
A written agreement on the project is expected to be signed at next week’s PV Expo in Tokyo, when Egyptian President Abdel-Fattah el-Sissi is scheduled to visit Japan to discuss the project, which would be the first in Egypt to boast a large-scale storage facility.
Construction costs are expected to mount to around $92m, and the two governments have established a low interest payback rate for the loan.
"We want to attract global attention with achievements in Egypt," a government official told The Japan News.