Saudi-based power generation and desalinated water plant developer, investor and operator Acwa Power has finalised the project agreements for the 200 MW Kom Ombo solar photovoltaic (PV) plant, in Egypt.
Construction of the plant is expected to start in the third quarter of this year.
The signing of the 25-year power purchase agreement (PPA), network connection contract and usufruct agreement was conducted through a virtual ceremony held with senior government officials and representatives of the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA) and Acwa Power.
The agreements were signed by EETC chairperson Sabah Mashaly, NREA chairperson Dr Mohamed Al-Khayat, Acwa Power chief portfolio management officer and acting CIO Rajit Nanda and Acwa Power Egypt country development director Hassan Amin.
Financial closure of Kom Ombo PV is scheduled for the third quarter of this year, following the obtaining of $40-million in senior debt financing and a $14-million equity bridge loan from the European Bank for Reconstruction and Development.
This is in addition to a $27.2-million loan from the African Development Bank to finance the construction, development and design of the solar project.
The government guarantee for the project was signed in January between Acwa Power and Egyptian Finance Minister Mohamed Maait.
Kom Ombo PV is part of Acwa Power’s established energy portfolio and record in Egypt, which currently includes three solar PV projects located in the Aswan province (Benban 1, Benban 2 and Benban 3) with an aggregate capacity of 120 MW, as well as the 2 250 MW Dairut-Luxor combined-cycle gas turbine independent power producer in the Luxor governorate.
Egypt’s Electricity and Renewable Energy Minister, Dr Mohamed Shaker El Markabi, says the country is home to a wide range of untapped renewable resources, particularly wind and solar energy.