Energy generation and desalination company Acwa Power has secured a $114-million financing package for the construction of the largest private solar power plant in Egypt.
The 200 MW Kom Ombo plant will contribute to the Egyptian government’s target to generate 42% of the country’s electricity from renewable energy sources by 2035, while delivering one of the lowest generation tariffs on the continent.
The European Bank for Reconstruction and Development (EBRD) provided $36-million of the financing, while the Organisation of the Petroleum Exporting Countries Fund for International Development (the OPEC Fund) provided $18-million, the African Development Bank (AfDB) $17.8-million, the Green Climate Fund (GCF) $23.8-million and Arab Bank $18-million.
This is in addition to equity bridge loans of up to $14-million provided by EBRD and $33.5-million by Arab Petroleum Investments Corporation.
"Kom Ombo PV is the fourth project in Acwa Power’s Egyptian portfolio and the conclusion of this financing demonstrates the confidence in the Egyptian government’s ambitious renewable energy plans, being implemented through private-sector participation," says Acwa Power president and CEO Paddy Padmanathan.
Private-sector participation in the Kom Ombo project is the result of successful policy dialogue with the Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company (EETC), as well as a $3.6-million technical assistance programme co-funded by the EBRD, to support the EETC in administering competitive renewable energy tenders.
In addition, the project has also benefited from broader energy sector reforms supported by the AfDB in recent years to scale up the involvement of the private sector.
“We are very happy to team up again with Acwa Power, after our successful partnership in Benban, to promote renewable energy in Egypt. Increasing the production of clean energy is an important step to reducing carbon emissions and addressing climate change. This is in line with the EBRD’s strategy to become a majority green bank by 2025,” says EBRD president Odile Renaud Basso.