ACWA Power plans three solar projects in Egypt
The total project cost is estimated at $190 million. Of this, 75 per cent is funded through a project debt from European Bank for Reconstruction and Development and Industrial and Commercial Bank of China.
MUSCAT: ACWA Power has reached financial close of the three solar PV projects under the second round of Egypt Feed-in-Tariff programme II, with an aggregate capacity of 165.5MW.
The total projects cost is estimatd at $190 million. Of this, 75 per cent is financed through a nonrecourse project debt from European Bank for Reconstruction and Development and Industrial and Commercial Bank of China. The latter tranche will with Multilateral Investment Guarantee Agency cover and the balance 25 per cent of the projects cost financed with equity capital provided by the sponsors.
The projects, which are located in the Aswan Province at Benban, will have a respective capacity to generate 67.5MW, 70MW and 28MW as individual project. The construction of the all projects will commence in the first quarter of 2018. Once the projects start operations in the fourth quarter of 2018, the new installed capacity will power 80,000 houses and provides a saving of 156,000 tonnes of CO2 a year.
The Government of Egypt and the Ministry of Electricity and Renewable Energy have set a target of obtaining 20 per cent of its energy requirements from renewable sources by 2022. The feed-in tariff programme aims to secure an initial generation of 2,000MW of solar capacity and 2,000MW of wind capacity. “We are very excited that our first projects in Egypt have not only achieved financial close but are three photovoltaic power plants supporting the Egyptian Government in its pursuit of securing 20 per cent of renewable energy in the power generation mix by year 2022,” said Paddy Padmanathan, President and CEO of ACWA Power.
“Achieving financial close for these projects is a significant milestone – not just for these projects, but as our first projects they establish the foundation for many more opportunities that ACWA Power is pursuing with the Ministry of Electricity. ACWA Power identified Egypt as an investment destination in 2009 and subsequently established a local company ACWA Power Egypt in 2015. The successful financial close of these projects is a harbinger of change in the deployment of power generation capacity, and reinforces our belief in the potential that exists in the country,” added R. Nanda, CIO of ACWA Power.