Saudi's Acwa signs Egypt gov't deal for $2.5bn Luxor power plant
The PIF-backed company will reportedly also finalise three projects at Benban Solar Park in Aswan by June 2019
Saudi Arabia-based energy Acwa Power has reportedly signed an agreement with the Egyptian Government for an electricity plant with a capacity of 2,250MW in Luxor, with total investments estimated at $2.5bn.
Speaking to Daily News Egypt at the Egyptian-Saudi Business Council Forum on 24 February, Hassan Amin, Acwa Power’s country director for Egypt, also revealed that the company will finalise three projects, valued at $200m and with a total capacity of 160MW, at Benban Solar Park in Aswan, Egypt by the end of June 2019.
Amin explained that the project in Luxor, a part of Upper Egypt, falls within the Egyptian government’s plans to expand the country’s electrical grid. He added that Acwa Power is also awaiting the cabinet’s approval for implementing a 500MW wind project in the Ras Ghareb area in Eastern Egypt.
“The climate of investment in Egypt is improving following the New Investment Law and simplifying the foundation procedures,” Amin added, according to the report.
“Energy subsidy [cuts are also] a positive measure that is being gradually implemented by the Egyptian government.”
The news amid a flurry of activity in Egypt’s renewable energy sector. A $68.6m solar project, developed by Dubai-based firm Alcazar Energy and with the capacity of 64-megawatt (MWp), started commercial operations in Benban earlier this year.
Meanwhile, December 2018 saw Acwa Power partnering with Industrial and Commercial Bank of China (ICBC), Shanghai Electric Group Co, and Spanish company Abengoa to build the world's largest renewable energy project, the Noor Energy 1 solar plant, in Dubai.
Acwa Power, in which the kingdom's Crown Prince HRH Mohammad Bin Salman-led Public Investment Fund (PIF) holds a stake, is lead developer on the project, while ICBC has established its role as an international lender for Noor Energy 1.