Scatec Solar to build $600m solar projects in Egypt
CAIRO, November 19, 2015
Scatec Solar, a leading solar energy provider, is planning to invest $600 million on solar projects over two years in Egypt.
As the sun is very stable from morning to evening, plenty of solar power can be generated in Egypt, said a statement.
These investments will create employment, with the provider in discussions with Egyptian companies in regards to training local workers and teaching them the skills during the construction of solar plants, it said.
Terje Osmundsen, Scatec Solar senior vice president for Business Development, who took part in the recently concluded Solar Projects Egypt conference, said that if Egypt moves according to its ambitious timeline, it can emerge as a leader in solar energy.
The conference showed that there is an emerging cluster of Egyptian companies that is preparing to play an active role in developing the solar market in Egypt.
India, South Africa and China are large countries and play an important role, but in the Mena region, Egypt can become the leading hub on solar development, and gradually even manufacturing, said Osmundsen.
Egypt is potentially a very attractive market because for every KW per hour of solar energy that can be produced. Importing fuel is expensive and a drain of precious foreign exchange reserves. Solar energy can replace imported oil, fuel and diesel to produce electricity.
From a global perspective, the Benban area is a huge area because it is linked to the infrastructure of the Aswan Dam – so it can combine hydro, wind and solar power. So this area is very suitable for building solar power farms, he said.
The company has started recruiting people to work on the three projects in Benban and two in Zaafarana and has also been co-ordinating with local companies.
The Benban projects are set to be launched in the first half of the next year, said Osmundsen.
Meanwhile, the Egyptian Electricity Transmission Company (EETC) is ready to sign the contract of sub-stations and want to start next year, he said.
About 25 to 30 per cent equity amounts to $112 million to $146 million, and 70 to 75 per cent debt will represent $420 million to $450 million in loans from the banks. The firm is discussing with Norwegian and international funders, he added. - TradeArabia News Service
