Saudi Arabian electric utility ACWA Power has been awarded three Egyptian solar PV projects under Round 2 of the country’s Feed-in Tariff program, amounting to a total of 165.5 megawatts worth of new solar capacity.
ACWA Power signed the Power Purchase Agreements (PPA) with the Government of Egypt on Tuesday for three solar PV power plants in Benban, in the Aswan Province, under Round 2 of Egypt’s Feed-in Tariff (FiT) program. ACWA Power will develop, finance, build, own, and operate the three projects which together will have a capacity of 165.5 MW (megawatts) and require a total investment of $190 million.
The PPA signing was attended by the Prime Minister of Egypt, Dr. Sherif Ismail, the Ambassador of Saudi Arabia, Mr. Ahmed Al Qattan, and the Egyptian Minister of Electricity and Renewable Energy, Dr. Mohamed Shaker, and other Ministry leaders.
The three solar projects will have a capacity each of 67.5 MW, 70 MW, and 28 MW, and are expected to reach financial close and begin construction by the end of this year, and upon completion will end up generating enough electricity for the equivalent of 80,000 homes, while simultaneously avoiding 156,000 tonnes of CO2 a year. These will contribute toward Egypt’s plans to secure 20% of its energy generation from renewable energy sources by 2022, thanks to the FiT program which aims to secure 2 GW worth of solar capacity and 2 GW worth of wind capacity.
“Today the Egyptian government has taken another step toward sustainable and enduring energy security through working towards a balanced energy mix,” said Dr. Mohamed Shaker.
“Energy projects are long-term by nature, and by selecting ACWA Power, we have partnered with a developer who is 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.”
“Egypt has always been a strategic interest country for ACWA Power,” added Rajit Nanda, Chief Investment Officer of ACWA Power.
“ACWA Power has been in the Egyptian market since 2009, when the company submitted a bid for Dairut power plant and established ACWA Power Egypt in 2015, coinciding with the Egypt Economic Development Conference in Sharm El Sheikh. The Benban projects are a significant for being ACWA Power’s first investment in the country and we are confident that we will have many more opportunities to partner with the Ministry of Electricity in its pursuit of energy security and other strategic goals.”
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