Saudi’s ACWA Power bags solar projects worth $190m in Egypt
Under the terms of the deal, ACWA Power will develop, finance, build, own, and operate three photovoltaic power plants with an aggregate capacity of 165.5MWp
ACWA Power has secured three solar photovoltaic (PV) power plant contracts in Egypt.
The deal, which was awarded under Round 2 of the Feed-in-Tariff (FiT) programme, will see the Saudi Arabia-headquartered company develop, finance, build, own, and operate the plants.
Located in Begban’s Aswan province, the PV power plants will boast an aggregate capacity of 165.5MWp, and will be developed at a total investment value of approximately $190m (SAR712.5m).
Hosted by the Government of Egypt, the power purchase agreement (PPA) was attended by Eng Gamal Abd-Al Rehem, chairman of the Egyptian Electricity Transmission Company (EETC), and Mohammad Abunayyan, chairman of ACWA Power, as well as other dignitaries.
Paddy Padmanathan, president and chief executive officer of ACWA Power, said: “We are proud to partner with the Egyptian government as [it] pursues an ambitious goal to ensure reliable, lowest-cost electricity generation capacity.
“[This will] increase quality of life [for] the people of Egypt, and support continuous industrial expansion of the country, without compromising on its commitment to protect the planet by reducing carbon emission through deployment of increasing levels of renewable energy in the generation portfolio mix.”
Dr Mohamed Shaker, Egypt’s Minister of Electricity and Renewable Energy, added: “Energy projects are long-term by nature and, by selecting ACWA Power, we have partnered with a developer [that] is keen to invest in several energy infrastructure projects in Egypt.
“With the Benban projects, ACWA Power is coming on board as an investor, as well as a developer, and that commitment reflects its continued confidence in Egypt’s political stability and economic viability.”
The PV power plants are expected to achieve financial close and commerce construction by Q4 2017. Once operations commence in 2018, the projects will power 80,000 houses while saving approximately 156,000t of CO2 per year, compared to conventional methods of generation.
ACWA Power will conduct the contracts in partnership with Egypt-based Tawakol and Hassan Allam Holding.
The projects are in keeping with the Government of Egypt and Ministry of Electricity and Renewable Energy’s (MoERE) target to achieve 20% of its energy generation from renewable sources by 2022. The FiT programme aims to secure an initial generation of 2,000MW of solar capacity and 2,000MW of wind capacity.