The European Bank for Reconstruction and Development (EBRD) said on Thursday that it is extending an initial $4.2 million loan to Egypt's TAQA PV for Solar Energy for one of the first private-to-private renewable energy projects in the country.
TAQA PV for Solar Energy is the renewable energy subsidary of TAQA Arabia, Egypt's largest private integrated energy company.
EBRD said in a press statement that the loan is part of a financing package of up to $10 million to expand TAQA Arabia's private-to-private renewable energy business.
The EBRD funds will finance the construction and operation of a 6 MWp solar photovoltaic power plant at Dina Farms, Africa's largest dairy farm located in the Beheira governorate, according to the statement.
This photovoltaic power plant will enable Dina Farms to cover part of its energy consumption with clean energy.
TAQA PV for Solar Energy will sell all of its generated energy to Dina Farms under a 25-year power purchase agreement (PPA).
The plant is the first private-to-private renewable energy project financed by the EBRD in Egypt involving direct electricity supply from a privately owned generator to a private off-taker through a corporate PPA.
TAQA Arabia and Dina Farms are part of Qalaa Holdings.
(Writing by Syed Ameen Kader; Editing by Anoop Menon)
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