ACWA Power Looks To Seal 2 GW Renewable Energy Deal With Egypt
Saudi Arabia-based project developer ACWA Power and Abu Dhabi-based Masdar Group are looking to officially seal a deal with the Egyptian government to set up large-scale renewable energy projects.
Officials of ACWA Power and Masdar will soon meet representatives of the Egyptian government to officially propose setting up 1.5 GW of solar power and 500 MW of wind energy capacity.
Earlier this year, ACWA Power and Masdar signed an agreement with the Egyptian Electricity Holding Company to develop 2 GW of renewable energy capacity, including 1.5 GW of solar power and 500 MW of wind energy capacity. The companies are expected to start the capacity development with a 200 MW solar PV power plant.
Egypt plans to aggressively expand its renewable energy installed capacity as it aims 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 receive 13.6¢/kWh, and projects between 20 MW and 50 MW will receive 14.34¢/kW, with contracts for a 25-year term.
A number of developers have announced grand plans to set up renewable energy projects in Egypt. Terra Sola has announced a $3.5 billion investment to set up about 2 GW of solar power capacity over the next few years, with initial plans to set up a 800 MW solar power park, while SkyPower Global and International Gulf Development have jointly signed agreement to install up to 3 GW of solar power capacity over the next 4 years.
The 2020 target set by Egypt’s New & Renewable Energy Authority includes 12% from wind power and 8% from other technologies like solar power and hydro power. The expected capacity addition is skewed towards wind energy, as solar power is still costly in Egypt, while hydro power potential has been largely utilized.
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