Saudi’s ACWA Power wins three Solar PV projects in Egypt
ACWA Power will to develop, finance, build, own and operate three Solar PV plants in Egypt with an aggregate capacity of 165.5 MWp and total investment value of $190mn
Saudi Arabia headquartered power developer, ACWA Power, has signed a Power Purchase Agreement with the Government of Egypt for three solar photovoltaic (pv) power plants in Benban under Round 2 of the Feed-in-Tariff (FiT) programme.
The projects, which are located in the Aswan Province in Benban, will individually generate 67.5 MWp, 70 MWp and 28 MWp, and have an investment value of about $190mn. The projects are expected to achieve financial close and commence construction by Q4 2017.
Once the projects start operations in 2018, they will power 80,000 houses while saving around 156,000 tons of CO2 a year
The Government of Egypt and the Ministry of Electricity and Renewable Energy (MoERE) have set a target of 20% of its energy generation from renewable sources by 2022. The feed-in tariff programme aims to secure an initial generation of 2,000 MW of solar capacity and 2,000 MW of wind capacity.
“Today the Egyptian government has taken another step toward sustainable and enduring energy security through working towards a balanced energy mix. Under the leadership of H.E. President Abd El-Fattah Elsisy, the country has set ambitious renewable targets through the FiT Program that not only reflect our needs at present but also safeguard us for the future,” said Dr. Mohamed Shaker, Egypt’s minister of electricity and renewable energy
He said that since energy projects are long-term by nature, and the selection of ACWA Power was a wise one as it opens doors for future partnerships with a developer 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,” said Shaker.
The Egyptian government is pursuing an ambitious goal to ensure reliable lowest cost electricity generation capacity to increase quality of life to the people of Egypt and support continuous industrial expansion of the country.
“We are proud to partner with the government in pursuing their goals and helping it in its commitment to protect the planet by reducing carbon emission through deployment of increasing levels of renewable energy in the generation portfolio mix,” said Paddy Padmanathan, President & CEO of ACWA Power.
ACWA Power is partnering with Tawakol and Hassan Allam Holding, two of the most reputable local companies in Egypt on the project, highlighting the company’s commitment and belief in the Egyptian Market.