ACWA Power, a leading developer and operator of power generation and water desalination projects, has successfully secured a significant financing package of $123 million for the development of a 200MW solar power plant in the Aswan province of Egypt.
The company obtained the funding through a consortium of banks, including the European Bank for Reconstruction and Development (EBRD), the Industrial and Commercial Bank of China Limited (ICBC), the African Development Bank (AfDB), and the Islamic Corporation for the Development of the Private Sector (ICD).
“ACWA Power’s successful acquisition of financing support for our renewable project is a significant milestone. We’re fully committed to fast-tracking the project’s development while staying true to Egypt’s renewable energy targets,” said Marco Arcelli, CEO of ACWA Power.
“The Kom Ombo solar project further demonstrates the private sector’s active involvement in Egypt’s energy transition. This accomplishment highlights the shared vision and purpose of various global financing institutions in achieving the Republic’s targets, which would not be possible without the trust and support of the government, the Egyptian people, and communities,” he added.
Strengthening Egypt’s Energy Independence
The Kom Ombo plant will be located less than 20 kilometres from Africa’s biggest solar park, the 1,465 MW Benban complex—another ACWA Power development—and is expected to be commercially operational in January 2024. Once fully functional, the new utility-scale plant will serve 130,000 households.
While the financing documentation was originally signed in April 2021 with the EBRD, the OPEC Fund, the Green Climate Fund (GCF), African Development Bank (AfDB) and Arab Bank, the dynamics in global supply chains due to Covid19 altered the dynamics for the development of solar plants. This resulted in the extension for Kom Ombo’s project execution.
ACWA Power has a significant presence in the region and has been actively investing in renewable energy projects. The funding injection marks a crucial milestone in Egypt’s efforts to expand its clean energy infrastructure, driving economic growth and reducing greenhouse gas emissions.
The project is expected to create over 800 jobs during the construction phase and support Egypt’s economic growth by providing clean and sustainable energy. The Kom Ombo plant will contribute to the Egyptian government’s target to generate 42 per cent of the country’s electricity from renewable energy sources by 2035 while delivering one of the lowest generation tariffs in Africa.
In addition to the Kom Ombo solar power plant, ACWA Power is also developing several other renewable energy projects in Egypt, including the 2 GW Al-Sheikh Solar Park and the 500 MW Ibri II solar project in Oman.