IFC, a member of the World Bank Group, announced its investment of USD 25 million (EUR 22.7 million) in a pioneering power company, to help develop a series of renewable energy projects in the Middle East, Turkey, and Africa, spurring economic growth and helping meet the growing demand for power.
IFC’s equity investment will help Alcazar Energy, based in United Arab Emirates, develop and operate renewable energy projects, with a focus on solar and wind power plants, the press release said. „MENA’s solar potential alone is massive,” says Maroun Semaan, company’s co-founder and chairman. „Enough solar energy hits the region every year to satisfy the planet’s demand for power. The investment from IFC will help tap into that potential and boost power generation across the region at more competitive costs.”
The rapid growth in electricity demand and lagging supply has resulted in power shortages across Middle East and North Africa. According to studies, the demand for power will grow 84% by 2020, IFC said. It is estimated that around $280 billion of investment will be needed over the next five years to meet the region’s growing electricity demand.