Solar trio nears fin close on 150 MW solar projects in Egypt - report

Three solar projects in Egypt of 150 MW in total are nearing financial close, to be followed by the signing of power purchase agreements (PPAs) with the government, Daily News Egypt said Thursday.

The companies behind the projects, estimated to require a combined investment of about USD 300 million (EUR 272.7m), are Al Fanar, Infinity Solar and Summit Egypt. The solar power trio will aim to secure the funds for their projects before October 26, when feed-in-tariffs (FiTs) in Egypt will be reduced after entering into the second round of the programme.

In phase I of the country’s PV incentive scheme, large-scale facilities are eligible for a USD-0.143 FiT per kWh. Arbitration in case of a dispute takes place in Egypt. To get these terms companies have to secure 85% of the financing from foreign banks.

According to the report, Summit Egypt and Infinity Solar will soon sign deals with German financial institutions, while Saudi peer Al Fanar will use a combination of internal resources and an Egyptian-pound-denominated loan from the Qatar National Bank (QNB).

Offtake contracts will be offered by Egyptian Electricity Transmission Co (EETC) once the projects reach financial close. The PV parks will be located in the Banban area of Aswan.

(USD 1.0 = EUR 0.909)

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