Saudi Arabia-based multinational energy company ACWA Power has finalised deals enabling the development and operation of a new 200MW solar PV plant in Egypt.
The Kom Ombo solar PV project will be one of the largest privately developed utility-scale solar plants in Egypt.
Once completed, the project will produce enough energy to power 130,000 households and offset 336,000 tons of carbon dioxide per year. The development of the solar PV project is expected to start in the third quarter of 2021.
The plant will expand Egypt’s portfolio of renewables and help the country move towards its target of generating 22% of the country’s power from renewables by 2022 and 42% by 2035.
The European Bank of Reconstruction and Development (EBRD) will provide a $14 million equity bridge loan and $40 million senior debt financing. A financial package has also been signed with the African Development Bank for a $27.2 million loan.
Despite the signed deals for the development of the plant, financial closure for the construction of the project is set to be finalised in the third quarter of 2021.
ACWA Power has signed a 25-year Power Purchase Agreement (PPA), Network Connection Contract and Usufruct Agreement with the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA).
In January 2021, ACWA and the Egyptian Ministry of Finance signed a government guarantee for the project.
In Egypt, ACWA Power has three solar PV projects located in the Aswan province (Benban 1, Benban 2 and Benban 3) with an aggregate capacity of 120MW and the 2250MW Dairut-Luxor CCGT IPP in the Luxor Governorate.