An international consortium of large solar power and engineering industries firms announced Friday the start of building Egyptian solar plants to generate 2 GW of power with the cost of US$3.5 billion.
The Terra Sola consortium comprises Bahrain-based Terra Sola Ventures (Terra Sola), Swiss wealth management company Terra Nex, RWE New Energy, Hareon Solar Technologies, and a number of German tech companies including LTi ReEnergy.
Terra Sola plans constructing a 200 MW PV module manufacturing facility and an inverter fab to be used for the consortium’s own solar plants as well as exporting.
In 2015, Terra sola has signed a memorandum of understanding (MoU) with state-run Egyptian Electricity Holding Company (EEHC) to develop a large-scale solar power project.
The MoU was signed by Terra Sola chairman David Heimhofer and EEHC chairman Ahmed Moustafa Emam in the presence of dignitaries from the Egyptian government and senior management from Terra Sola and Terra Nex.
Switzerland-based Terra Nex is managing a fund comprising German investors to finance the planned projects, while Hareon will supply solar modules, and RWE will help operate the plants.
During the visit of German deputy Chancellor last week, a delegation of the German firms participating in the consortium met with Egyptian high-profile officials to showcase plans to carry out the project.
The consortium established an office in Egypt to coordinate with the Egyptian government to start conducting studies and implementation phases.
Members of Terra Sola’s Board of Directors visited Luxor and Aswan governorates to review locations where three solar power plants are set to be established.
About the project, Terra Sola’s chairman Heimhofer stated that it is a perfect one for flourish engineering through which the Egyptian economy would achieve balance between getting revenues for investors and enhancing social and economic development for Egypt.
Member of the Board of Terra Sola Peter Göpfrich said that Egypt is one of the most active and growing markets in Middle East and North Africa which is considered attractive for German projects. Thus, Terra Sola and its partners are considering the project as main and important step in their strategies to upgrade firm’s global projects.
Göpfrich added that the project will benefit Egypt directly and indirectly as the project will bring $3.5 billion direct investments to Egypt , creating more than 50,000 job opportunities.
Meanwhile, the manufacturng facility is set to provide more than 1,500 job opportunities in construction phase besides 1,000 permanent job opportunities during operational phase, the official clarified.