Monday 22 October 2018

Acwa Power reaches financial close of Egypt solar projects

CAIRO, January 8, 2018

Acwa Power has reached the financial close of the three solar photovoltaic (PV) projects under Round 2 of Egypt Feed-in Tariff programme II, with an aggregate capacity of 165.5MWp. 
The total projects cost is $190 million, of which 75 per cent will be financed through a non-recourse project debt from EBRD (European Bank for Reconstruction and Development) and ICBC (Industrial and Commercial Bank of China) the latter tranche with Multilateral Investment Guarantee Agency cover and the balance 25 per cent of the projects cost financed with equity capital provided by the sponsors, said a statement.
The projects, which are located in the Aswan Province at Benban, will have a capacity to generate 67.5 MWp, 70 MWp and 28 MWp as individual projects. Construction of all the projects will commence in Q1 2018. Once the projects start operations in Q4 2018, the new installed capacity will power 80,000 houses and provide a saving of 156,000 tons of carbon dioxide a year, it said.
The Government of Egypt and the Ministry of Electricity and Renewable Energy (MoERE) have set a target of obtaining 20 per cent of country’s energy requirements from renewable sources by 2022. The feed-in tariff programme aims to secure an initial generation of 2,000 MW of solar capacity and 2,000 MW of wind capacity.
Commenting on the financial close of the projects, Paddy Padmanathan, president and CEO of Acwa Power, said: “We are very excited that our first projects in Egypt have not only achieved financial close but are also supporting the Egyptian Government in its pursuit of securing 20 per cent of renewable energy in the power generation mix by the year 2022.”
Acwa Power is partnering with the Chinese group Chint and Egyptian groups Tawakol and Hassan Allam Holding in this project.
Acwa Power is also pursuing a number of other opportunities to consolidate its presence and support the Egyptian market, notably the Dairut 2,250 MW CCGT project and a pipeline of more than 500 MW of wind projects, 1 GW of PV projects and 100 MW of CSP projects, the statement added. – TradeArabia News Service

Tags: Egypt | solar | Acwa |

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