IFC, a member of the World Bank Group, has invested $25m in Alcazar Energy to help develop and operate a series of renewable energy projects in the Middle East and North Africa (MENA) region, with a focus on solar and wind power plants.

Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa, said power shortages are a key barrier to economic growth and development across the region.

“By harnessing the region’s considerable renewable potential, we can increase supply of sustainable, clean energy, helping to boost economic growth and alleviate poverty,” he said.

The rapid growth in electricity demand and lagging supply has resulted in power shortages across many MENA countries.

According to studies, the demand for power across MENA countries will grow 84% by 2020.

Renewable energy projects will assist in bridging this gap.

It is estimated that around $280bn of investment will be needed required in over the next five years to meet MENA’s growing electricity demand.

The initiative is part of IFC wider strategy in the region that focuses on improving the region’s infrastructure with focus on power and renewable energy projects and fostering regional integration by helping companies expand operations to different parts of the region.

Alcazar Energy was founded in February 2014 as an independent developer and power producer focused on medium scale renewable energy projects across the META region (Middle East, Turkey and Africa).

Alcazar Energy’s main role is the origination, development, structuring, acquisition and operation of renewable energy plants with a focus on wind and solar technologies.

Maroun Semaan, Alcazar Energy Co-founder and Chairman, said: “MENA’s solar potential alone is massive. 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.”