MIGA Endorses Egypt’s initiatives to construct 6 Solar Power Plants

One of the members of the World Bank Group, MIGA assures $102.6m financial aid to encourage the construction, operation and maintenance of 6 solar power plants that will possess a combined capacity of up to  250MW pegged at worth $ 385.8m.

MIGA Executive Vice President and CEO Keiko Honda states “We are proud to be supporting Egypt’s ambitious efforts to deliver reliable power to its citizens while helping tackle climate change.”

The government intends to generate renewable energy that will amount to 20%  of power generation by 2020. Once the six plants are operational, they will have enough capacity to provide power to the equivalent of 349,912 additional residential households. It is also noteworthy that The World Bank Group has been an important partner of the Government of Egypt in the energy sector, and the IBRD, IFC, and MIGA jointly developed an Energy Joint Implementation Plan in response to the government’s targets.

Reports suggest that consumption pattern in Egypt is dynamic having surged by 6% annually since 2008. To date, installed capacity has been touted at 35 GW; however, with a generation mix consisting of 78 percent gas-fired and 12 percent fuel oil-fired power plants, Egypt’s energy sector has been devoid of power leading to frequent blackouts owing to profound shortages due to unmatched demands since 2010 that witnessed severe underinvestment as well.