Acwa Power accelerates revival of Egypt’s solar advancement with three projects
Saudi Arabian energy company Acwa Power said yesterday that it will develop three solar power projects in Egypt at cost of US$190 million, with multi-lateral banks chipping in as the North African country continues to attract investments into its energy sector.
Acwa with its Egyptian partners Tawakol and Hassan Allam Holding will build the solar photovoltaic plants totalling 165.5 megawatts in the Benban area in Aswan as part of the government’s second round of the feed-in tariff programme.
Half of the $190m investment will come from the European Bank for Reconstruction and Development and the remainder from the International and Commercial Bank of China and the Multilateral Investment Guarantee Agency.
Financial close is expected by the end of next month with about 80,000 homes to be powered by solar energy next year.
Other developers that have signed in the second round include Dubai-based Access Power, Norway’s Scatec, Alfanar of Saudi Arabia, Sharpoorj Paloonji of India and France’s EDF. Others that are expected to sign include Dubai firms, Alcazar and Desert Technologies; Egyptian companies, El Sewedy and Infinity as well as Jordanian company, Enara, with Spanish partner Acciona.
This is the first investment from Acwa Power in Egypt, al though it has been present in the country since 2009.
“The first bid in Egypt was the Dairut power plant, but we have not signed the power purchase agreement though we look forward to taking it forward,” said the Acwa chief executive Paddy Padmanatha.
He said that Acwa Power is also keen on Egypt’s wind sector to build a “meaningful portfolio of power generation assets” in Egypt.
“We believe Egypt will end up procuring significant amounts of renewable energy in due course given the quality of the resources in the country and the price levels that are now being achieved in the industry.”
Financial close is expected by the end of next month with about 80,000 homes powered by solar next year