Saudi Arabia’s ACWA Power is looking to raise debt financing to fund various wind and solar power projects in Egypt.
ACWA Power’s country manager for Egypt recently announced that the company is looking to raise $150 million in debt to fund large-scale renewable energy projects. Hassan Amin stated that the company is looking to enter into loan agreements preferably with Egyptian banks, as the feed-in tariffs would be in Egyptian Pounds.
Amin stated that the company is currently in the process of acquiring land for a wind energy project in the Suez Canal region which will have an installed capacity of 100 MW, while the solar power project would be developed in the Aswan region.
The Egyptian government is expected to issue the power purchase agreements for the projects over the next two weeks, following which the company will start the process of raising debt from the banks.
In March this year, during an economic summit, ACWA Power, in partnership with Masdar, signed an agreement with the Egyptian Electricity Holding Company to develop 2 GW of renewable energy capacity, including 1.5 GW solar power and 500 MW wind energy capacity. During the summit various project developers pledged to set up at least 6.5 GW of solar power capacity over the next few years.
Egypt plans to aggressively expand its renewable energy installed capacity as it targets a goal to generate 20% electricity from renewable sources by 2020. The government has also launched an attractive feed-in tariff scheme to boost investments in the solar power sector. 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.
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