Saudi Arabia’s ACWA Power signs final agreements for Egypt 200 MW solar project
Saudi Arabian utility developer ACWA Power announced on Wednesday that it has signed final agreements related to its 200-MW Kom Ombo solar photovoltaic (PV) project in Egypt.
During a virtual ceremony, ACWA Power said in a statement that it signed a 25-year power purchase agreement (PPA), a network connection contract, and a usufruct deal with the Egyptian government officials and representatives from the state-run Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA).
ACWA is set to receive a $40 million (€33.7 million) senior debt financing and a $14 million equity bridge loan from the European Bank for Reconstruction and Development (EBRD), and a $27.2 million loan from the African Development Bank (AfDB) to finance the project.
The company said it expects to reach financial close and start construction in the third quarter of 2021.
The Kom Ombo site is located in the Upper Egyptian city of Aswan, some 800 kilometres (497.1 miles) south of Cairo.
Moreover, ACWA Power said it expects commercial operations to begin in the third quarter of 2022.
“Egypt is home to a wide range of untapped renewable resources particularly, wind and solar energy. The electrical capacities that can be generated from renewable sources can reach up to nearly 90 GW,” Egypt’s Minister of Electricity Mohamed Shaker said.
Egypt has set a target to produce 42 percent of its electricity from renewable sources by 2035, but Minister Shaker said the country is currently conducting studies to increase this percentage.