Climate change caused by human intervention has resulted in adverse weather conditions such as global warming and a rise in sea level that yields to tsunamis. Therefore, a shift in energy production from fossil fuel to renewable energy is a major investment in the majority of the countries. Renewable energy produces clean energy that minimizes air pollution, thus conserves the environment.
On the other hand, The European Bank for Reconstruction and Development (EBRD) is capitalizing $60 million on Egyptian privately-owned energy firms on renewable energy. The investment seeks to develop the firm’s electricity production and pipeline in renewable energy. Additionally, the relationship between Egypt and EBRD dates to 2012 when the country became the founding members. Thus, the investment came in no surprise.
The investment came after the agreement of a joint project between Masdar and Infinity Energy, whereby the former seek to invest in Infinity Energy schemes and collaborate in corresponding energy schemes in Africa and Egypt. Additionally, the joint venture aims to advance wind and solar energy plans in Africa and Egypt. Thus, the venture will subsidize Egypt’s continual power shift from fossil fuel to renewable energy.
Despite the decreasing electricity production by renewable energy in Egypt, the government has announced an aim of 20 percent electricity production from renewable energy by 2022 and 42 percent by 2035. Thus, the government has promoted the invention of private renewable power stations over the years to meet the stated vision. Nevertheless, the development of private renewable energy firms is hindered by limited contact inequitable finance.
Recently, Hassan El-Khatib, the managing director of EBRD, remarked that a greater shift in energy production would be experienced in Egypt and regionally; hence the organization seeks to invest in Infinity Energy Company and develop a merged renewable energy solution distributer around the globe. Therefore, the collaboration of EBRD and Infinity Energy Company presents new hope for investment in renewable energy in Egypt.
The merger between EBRD and Infinity Company has produced a new experience in the country and the board. The director of EBRD, Harry Boyd, notes that the partnership with Infinity Company since the Benban scheme in 2017 has been a great experience. He further added that proceeding to become a shareholder in Solar Energy by Infinity Company seeks to advance renewable energy in the segment in Egypt.
Also, the liberation of Egypt’s energy sector into renewable energy creates numerous opportunities in which EBRD is ready to exploit and enhance. The investment between EBRD and Infinity Company will also provide a deep relationship between EBRD and Masdar.