Saudi renewable energy developer, ACWA Power, has finalised the project agreements for the 200MW Kom Ombo PV plant in Egypt, the company announced on Wednesday. Agreements were concluded with executives of the Egyptian Electricity Transmission Company (EETC) and The New and Renewable Energy Authority (NREA).
ACWA Power is proud to be a trusted partner in supporting Egypt’s sustainability ambitions through environmental stewardship, social responsibility and good governance
Paddy Padmanathan, President & CEO of ACWA Power
Construction of the 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 per year. The company hopes to begin commercial operations of the solar energy facility around the third quarter of 2022.
Financial closure and ground-breaking of the massive solar PV project is expected in the third quarter of 2021. ACWA Power obtained USD 40 million senior debt financing for the project, and a USD 14 million equity bridge loan from the European Bank of Reconstruction and Development (EBRD). This is in addition to a USD 27.2 million loan from the African Development Bank (AfDB) to finance the construction, development and design of the 200 MW solar PV project.
The signing of the 25-year Power Purchase Agreement (PPA), 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.
ACWA Power says the tariff is the lowest in the African continent for a project that is soon to achieve financial close and commence construction, which demonstrates that globally-competitive tariffs are possible in North Africa.
Powering Egypt with renewables
“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 maximizing the utilization 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.
Kom Ombo PV will be one of the largest privately developed utility scale solar plants in Egypt and will support the country in increasing 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.
