Final project agreements on PV plant in Egypt signed
Egypt, Kom Ombo: Saudi developer and investor ACWA Power has finalised the project agreements for the 200 MW Kom Ombo PV plant in Egypt.
The signing of the 25-year power purchase agreement, network connection contract and usufruct agreement was conducted 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.
“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 90 GW. 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.
Financial closure of Kom Ombo PV is scheduled for the third quarter of 2021, following the obtainment of a $40 M senior debt financing and a $14 M equity bridge loan from the European Bank of Reconstruction and Development, in addition to a $27,2 M loan from the African Development Bank to finance the construction, development and design of the 200 MW solar PV project.
Construction of the solar PV plant is expected to begin in the third quarter of 2021 and upon completion Kom Ombo PV will cater to the power needs of 130,000 households and offset 336,000 tons of carbon dioxide annually.
Kom Ombo PV will be one of the largest privately developed utility scale solar plants in Egypt and will support the country to increase its renewable energy capacity in line with the national targets to generate 22 % of Egypt’s power from renewables by 2022 and 42 % by 2035.
Source: ESI Africa