InfraMed is a 49% shareholder in BCRSV, a company developing a 50MWac greenfield photovoltaic solar farm project in Egypt. InfraMed is in consortium with Total Energie Developpement, the renewable energy arm of Total SA, and BPE Partners, an Egypt-based private equity fund manager. The farm will be located on a 133ha land of the El Gouna commune, 30 km from Hurghada along the Red Sea coast. Financial close is expected in Q4 2016 and construction will start immediately after.
Egypt faces a major challenge in providing electricity to its increasing population. Oil and natural gas contribute to 90% of total installed capacity, with negative financial and environment impacts. Egypt launched a series of reforms and its energy mix will substantially change in the coming decades with the ambition to rely on renewable energy for 20% of the electricity mix by 2020 and 44% by 2035. To do so, the government initiated several national schemes including a Feed-in-Tariff programme. The first round of the FiT targets 4,300MW. The government is committed to purchase the electricity produced from renewable energy facilities via 25-year power purchase agreements at fixed price.