Italian independent power producer Building Energy has signed a memorandum of understanding (MoU) with Egypt’s New & Renewable Energy Authority (NREA) for the development of two 50 MW solar photovoltaic (PV) plants in Benban, Egypt.
The plants, to be built at a collective cost of $200-million, would each generate around 143 GWh/y of electricity, reducing carbon dioxide emissions by over 100 000 t.
The plants would also be connected to the 220 kV high-voltage line linking Aswan to Cairo, providing electricity to 50 000 families, through a 25-year power purchase agreement.
More than 1 000 new jobs would be created during construction of the plants, as well as 70 to 80 long-term jobs during operation.
Construction would start in 2016 and be completed within a year.
“We are delighted to see substantial interest by reputable international developers in partnership with local companies investing in the Egyptian market for renewable energy under the [recently] announced legislation and [the first window of the] Feed-In Tariff (FIT) programme,” Egypt Electricity and Renewable Energy Minister Dr Mohamed Shaker El-Markabi said.
NREA chairperson Dr Mohamed El Sobky added that, with the allocation of public land under a fair and tightly managed scheme, the process of deploying 2 GW of solar energy under the country’s FIT programme exceeded expectations and had reached an important project development milestone.
“NREA foresees a considerable number of developers to reach financial close early in 2016 and start construction thereafter,” he noted.
Building Energy Middle East and North Africa (Mena) MD Cornelius Matthes said the company was delighted to have signed this MoU.
“The Benban project marks an important result for Building Energy because it is our first one in Egypt representing a key pillar of our expansion strategy in the Mena area.”
Building Energy teamed up with a local partner renewable-energy system integrator and project developer SolarShams to develop the plants.