ACWA Power has signed a power purchase agreement (PPA) with Egyptian Electricity Transmission Company to develop, finance, build, own and operate three solar photovoltaic (PV) power plants with an aggregate capacity of 165.5 MW with an investment of $190m.
The three solar farms will have a capacity of 67.5 MW, 70 MW and 28 MW individually and will be located in the Aswan Province in Benban.
Financial closure and project commencement is expected to start in the fourth quarter of this year. Commissioning of the solar farms is expected to take place in 2018.
The solar farms will generate enough electricity to be supplied to 80,000 homes while offsetting 156,000 tons of CO2 per year from entering the atmosphere.
The project is expected to support Egyptian government and the Ministry of Electricity and Renewable Energy in reaching their target of producing at least 20% of the total energy needs of the country from renewable sources by 2022.
ACWA Power president and CEO Paddy Padmanathan said: “We are proud to partner with the Egyptian Government as the Government pursues an ambitious goal to ensure reliable lowest cost electricity generation capacity to increase quality of life to the people of Egypt and support continuous industrial expansion of the country, without compromising on its commitment to protect the planet by reducing carbon emission through deployment of increasing levels of renewable energy in the generation portfolio mix.”
Egypt’s Minister of Electricity and Renewable Energy Dr. Mohamed Shaker said: “Today the Egyptian government has taken another step toward sustainable and enduring energy security through working towards a balanced energy mix.
“Under the leadership of H.E. President Abd El-Fattah Elsisy, the country has set ambitious renewable targets through the FiT Program that not only reflect our needs at present but also safeguard us for the future.”