January 10 (Renewables Now) - The World Bank’s Multilateral Investment Guarantee Agency (MIGA) said on Tuesday it is supporting the construction, operation and maintenance of six solar parks in Egypt totalling 250 MW.
MIGA is providing guarantees of up to USD 102.6 million (EUR 85.9m) against the risks of expropriation, transfer restriction and inconvertibility, breach of contract and war and civil disturbance. The agency said that about USD 5 million of the guarantees are being provided to cover investment by equity holder ib vogt GmbH for a period of up to 15 years, while some USD 97.6 million is being provided to the Industrial and Commercial Bank of China for up to 20 years.
The six solar projects, calling for an investment of USD 385.8 million, will operate under Egypt's feed-in tariff (FiT) programme. They have a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company and will sell their output at USD 0.084 per kWh.
Once fully operational, the photovoltaic (PV) plants will be able to generate enough power for about 349,912 local homes.
Three of the six projects are proposed by Saudi company ACWA Power. They will be financed through a combination of equity and non-recourse project debt from the European Bank for Reconstruction and Development (EBRD) and the Industrial and Commercial Bank of China (ICBC).
Under its FiT programme Egypt aims to add up to 4.3 GW of solar and wind capacity as part of an objective to have 20% of its electricity come from renewables by 2022. With an installed capacity of 35 GW, the country currently suffers frequent power deficits and blackouts due to rising demand and gas shortage, MIGA said.
(USD 1.0 = EUR 0.838)