ACWA Power has signed the final project agreements for the 200MW Kom Ombo PV plant with Egyptian government.
The signing of the 25-year Power Purchase Agreement (PPA), Network Connection Contract and Usufruct Agreement was conducted via a virtual ceremony held with senior government officials and representatives from the Egyptian Electricity Transmission Company (EETC); The New and Renewable Energy Authority (NREA), and ACWA Power.
“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. In line with Egypt’s Integrated Sustainable Energy Strategy, we aim to produce 42% of Egypt’s electricity using renewable sources by 2035. Currently, necessary studies are being conducted to increase this percentage, stressing maximizing the utilization of renewable energy in many areas, including water desalination and green hydrogen production’ said H.E. Dr. Mohamed Shaker El Markabi, Egypt’s Minister of Electricity and Renewable Energy
“The signing of the final project agreements for Kom Ombo PV reflects our longstanding relationship with the Egyptian Electricity Transmission Company (EETC) and The New and Renewable Energy Authority (NREA), as well as our shared commitment to advancing the country’s renewable energy landscape and decarbonization efforts. Playing a key role in accelerating the energy transition globally, ACWA Power is proud to be a trusted partner in supporting Egypt’s sustainability ambitions through environmental stewardship, social responsibility and good governance”, said Paddy Padmanathan, President & CEO of ACWA Power
The agreements were signed by Sabah Mashaly, Chairman of EETC; Mohamed Al-KHayat, Chairman of NREA; Rajit Nanda, Chief Portfolio Management Officer and acting CIO of ACWA Power; and Hassan Amin, Country Development Director- Egypt, ACWA Power.
The financial closure of Kom Ombo PV is scheduled for the third quarter of 2021, following the obtainment of a USD 40 million senior debt financing and a USD 14 million equity bridge loan from the European Bank of Reconstruction and Development (EBRD), in addition to a USD 27.2 million loan from the African Development Bank (AfDB) to finance the construction, development and design of the 200 MW solar PV project.
Construction of the plant is expected to begin in the third quarter of 2021 and upon completion, Kom Ombo PV will cater to the power needs of 130,000 households and offset 336,000 tons of carbon dioxide per year.