- Press Releases
April 7 (Renewables Now) - Saudi renewables developer ACWA Power on Wednesday announced that it has signed final agreements related to its 200-MW Kom Ombo solar photovoltaic (PV) project in Egypt.
Via a virtual ceremony, ACWA Power signed signed a 25-year power purchase agreement (PPA), a network connection contract and an usufruct agreement with the Egyptian government officials and representatives from the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA).
The Saudi company is due to obtain a USD-40-million (EUR 33.7m) senior debt financing and a USD-14-million equity bridge loan from the European Bank for Reconstruction and Development (EBRD), and a USD-27.2-million loan from the African Development Bank (AfDB) to finance the project.
It said it expects to reach financial close and start construction in the third quarter of 2021.
The Kom Ombo site is located in Aswan Governorate, Upper Egypt, some 800 kilometres (497.1 miles) south of Cairo.
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,” said Mohamed Shaker El Markabi, the minister of electricity and renewable energy in the government of Egypt.
Egypt has set a target to produce 42% of its electricity from renewable sources by 2035. The minister said that the country is currently conducting studies to increase this percentage.
(USD 1.0 = EUR 0.842)