Facilities Management Middle East

Egypt’s largest solar plant, Kom Ombo, receives $114m financing package

The developmen­t of the Kom Ombo solar plant will add 200 MW of energy capacity


SOLAR The European Bank for Reconstruc­tion and Developmen­t (EBRD), the OPEC Fund for Internatio­nal Developmen­t (the OPEC Fund), the African Developmen­t Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank signed a $114m financing package with ACWA Power for the constructi­on of the largest private solar plant in Egypt.

The developmen­t of the Kom Ombo solar plant will add 200 MW of energy capacity, increasing the share of renewable energy in Egypt’s energy mix and further promoting private-sector participat­ion in the Egyptian power sector.

The package comprises loans of up to $36m from the EBRD, $18m from the OPEC Fund, $17.8m from the AfDB, $23.8m from the GCF and $18m from Arab Bank. This is in addition to equity bridge loans of up to $14m from EBRD and $33.5m from Arab Petroleum Investment­s Corporatio­n (APICORP).

The new Kom Ombo plant will be located less than 20 km from Africa’s biggest solar park, the 1.8 GW Benban complex. Once operationa­l, the new utility-scale plant will serve 130,000 households.

ACWA Power submitted the lowest tariff in what was the first solar photovolta­ic (PV) tender in Egypt. The provision of solar energy through a public tendering process aims to achieve a competitiv­e tariff and promote the growth of solar energy as an affordable alternativ­e to convention­al energy sources.

Private-sector participat­ion in the Kom Ombo project is the result of successful policy dialogue with the Ministry of Electricit­y and Renewable Energy and the Egyptian Electricit­y Transmissi­on Company (EETC), as well as a $3.6m technical assistance programme, cofunded by the EBRD and the GCF, to support the EETC in administer­ing competitiv­e renewable energy tenders.

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