Italian firm to build $200m power plant in Egypt
Construction of the power plant project in Egypt will start by summer 2016
Italy’s Building Energy has signed an agreement worth $200m to build two 50MW photovoltaic plants in Egypt.
The project was awarded by the New and Renewable Energy Authority (NREA) of the Ministry of Electricity and Renewable Energy in Egypt.
Each plant in Benban, Upper Egypt, is expected to generate around 143GWh per year, contributing to the reduction of over 100,000 tons of carbon dioxide (CO2). Construction of the project will start in summer 2016, and will last 12 months.
Under a 25-year power purchase agreement, the plants will be connected to the 220kV high-voltage line linking Aswan to Cairo, meeting the energy needs of a total of 50,000 families. The project will create more than 1,000 jobs during construction and a further 70-80 long-term jobs during operation.
“We are delighted to announce the kick off of our first two projects in Egypt,” said Cornelius Matthes, Building Energy’s managing director for the MENA region.
"The country has established a well-managed programme under which it aims to produce at least 20% of its total power from renewable sources by 2020. We are also glad that, through these projects, we will manage to positively impact the country, not only contributing to the reduction of CO2 emissions, but also boost the local economy through the creation of over a thousand of new jobs.
"Other MENA countries will hopefully soon follow Egypt’s important leadership to deploy renewable energy on a large scale,” he added.