Acwa Power signs deal to develop new 200MW solar PV project in Egypt
The government guarantee for the project was signed in January 2021 between Acwa Power and Mohamed Maait, Egypt’s Minister of Finance
Acwa Power has inked an agreement for the development of a new 200MW solar PV (photo voltaic) plant in Egypt. Construction on the Kom Ombo PV plant is expected to begin in the third quarter of 2021 and once complete, it will cater to the power needs of 130,000 households and offset 336,000 tons of carbon dioxide per year.
Once operational, the plant will be one of the largest privately developed utility scale solar plants in Egypt, and is expected to support the country in increasing its renewable energy capacity in line with the national targets to generate 22% of power from renewables by 2022 and 42% by 2035.
The signing of the 25-year Power Purchase Agreement (PPA), Network Connection Contract and Usufruct Agreement was accomplished via a virtual ceremony, held with senior government officials and representatives from the Egyptian Electricity Transmission Company (EETC); The New and Renewable Energy Authority (NREA), and Acwa Power.
The agreements were signed by Sabah Mashaly, chairman of EETC; Dr Mohamed Al-KHayat, chairman of NREA; Rajit Nanda, chief portfolio management officer and acting CIO of Acwa Power; and Hassan Amin, country development director- Egypt, Acwa Power, the statement explained.
“Egypt is home to a wide range of untapped renewable resources particularly, wind and solar energy. The electrical capacities that can be generated from renewable sources can reach up to nearly 90GW. In line with Egypt’s Integrated Sustainable Energy Strategy, our aim is to produce 42% of Egypt’s electricity using renewable sources by 2035. Currently necessary studies are being conducted to increase this percentage, stressing on maximising the utilisation of renewable energy in many areas, including water desalination and green hydrogen production,” said Dr. Mohamed Shaker El Markabi, Egypt’s Minister of Electricity and Renewable Energy.
Paddy Padmanathan, president & CEO of Acwa Power added, “The signing of the final project agreements for Kom Ombo PV reflects our longstanding relationship with the Egyptian Electricity Transmission Company (EETC) and The New and Renewable Energy Authority (NREA), as well as our shared commitment to advancing the country’s renewable energy landscape and decarbonisation efforts. Playing a key role in accelerating the energy transition globally, Acwa Power is proud to be a trusted partner in supporting Egypt’s sustainability ambitions through environmental stewardship, social responsibility and good governance.”
He added, “Financial closure of the Kom Ombo PV project is scheduled for Q3 of 2021, following the obtainment of $40m in senior debt financing, a $14m equity bridge loan from the European Bank of Reconstruction and Development (EBRD), in addition to a $27.2m loan from the African Development Bank (AfDB) to finance the construction, development and design of the solar PV project.”
