Green Economy

Published on March 10th, 2015 | by Mridul Chadha

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Terra Sola Plans $3.5 Billion Solar Power Investment In Egypt

March 10th, 2015 by  

Leading solar power project developers are flocking to Egypt’s solar power market, which is set for a massive expansion.

Terra Sola has approached the Egyptian government with an intention to invest $3.5 billion to develop solar power projects. Terra Sola CEO David Heimhofer met with the Egyptian Prime Minister and shared his company’s plans.

The meeting took place only days after officials from SkyPower met the electricity minister and proposed to set up 3 GW of solar capacity in the country. With a proposed investment of $3.5 billion Terra Sola will, too, be able to install about 3 to 3.5 GW of solar photovoltaic capacity. According to reports, the company is planning to build an 800 MW solar PV park.

Terra Sola’s capacity addition plan is expected to generate an annual revenue of $760 million and provide employment to 20,000 people.

Project developers from around the world are interested in expanding in Egypt as it recently announced an ambitious renewable energy target to generate 20% of the electricity from renewable energy sources by 2020, and issued attractive feed-in tariff regulations. A recent auction of solar and wind energy projects organised by the Egyptian government received overwhelming response with prospective project developers willing to set up twice as much capacity offered by the government.

Fairly attractive feed-in tariffs have been offered by the government to solar power project developers. Solar PV projects between 500 kW and 20 MW in size will get 13.6¢/kWh, and projects between 20 MW and 50 MW will get 14.34¢/kW, with contracts for a 25-year term.

Terra Sola has concentrated its solar power investment in the Middle East & North Africa (MENA) region, and currently has over 1.7 GW of capacity in pipeline representing a value of $2.76 billion.


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About the Author

currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.



  • Wayne Williamson

    Sounds like good stuff, but 2 questions come to mind. The first is why are they offering 13-14 cents a kilowatt hour. (just seems a little high to me). And second is what are the 20k people going to be doing…..

    • omar

      They will be building the panels and electricians etc to fit them they also need some maintenance and security also people have to manage the current and overview the output to make sure all systems are working and people to route the power to areas which need them all of this on a very large scale so 20000 is a true value

  • JamesWimberley

    Are Egypt’s solar FITs unique? They increase with scale, rather than the usual decline. I see two possibilities.

    One is the nanny state, central planning mindset of many post-colonial governments – learnt from the LSE and Sciences Po more than Lenin. Bigger is better, even when it isn’t. The second is the peculiar geography of Egypt. In most countries low-value land is interspersed with the good stuff, and one shades into the other. In Egypt it’s a razor-sharp divide between the Nile valley, with every square inch cultivated or built, and the vast empty desert on either side. Any new solar plant in the desert has to be connected to a power line running along the valley. These connections are cheaper per watt for big farms than small ones, so the FITs reflect real system costs.

  • Will E

    that is 3,5 billion investing, and anual revenue is 760 million.
    payback time 5 year, production time 30 year, thats a revenue of 30 times 760 million.
    is 22800 million revenue on invested 3.5 billion.
    with no volatile fuel costs, just clean Solar money.
    or am I wrong on this.

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