ACWA Power signed the Power Purchase Agreement with the Government of Egypt for three solar photovoltaic power plants in Benban
under Round 2 of the Feed-in-Tariff (FiT) program in the presence of H.E. Prime Minister of Egypt, H.E. Ambassador of Saudi Arabia, the Minister of Electricity and Renewable Energy. ACWA Power will to develop, finance, build, own and operate the three projects with an aggregate capacity of 165.5 MWp and total investment value of c. US$ 190 million Power demand in Egypt grew by 28% in recent years with the Benban photovoltaic facility a key part of the government’s efforts to meet the country’s increasing energy needs.
Eng, Gamal Abd-Al Rehem, Chairman of the Egyptian Electricity Transmission Company (EETC) and Mr. Mohammad Abunayyan, Chairman of ACWA Power, attended the signing of the Power Purchase Agreement with the Government of Egypt for three solar photovoltaic power plants in Benban under Round 2 of the Feed-in-Tariff (FiT) program in the presence of H.E. Prime Minister of Egypt, Dr. Sherif Ismail the H.E. Ambassador of Saudi Arabia, Mr. Ahmed Al Qattan and the Minister of Electricity and Renewable Energy, Dr. Mohamed Shaker and other Ministry leaders.
The projects, which are located in the Aswan Province in Benban, will have capacity to generate 67.5 MWp, 70 MWp and 28 MWp individually, and have an investment value of c. US$ 190 million. The projects are expected to achieve financial close and commence construction by Q4 2017. Once the projects start operations in 2018, they will power 80,000 houses while saving around 156,000 tons of CO2 a year.
The Government of Egypt and the Ministry of Electricity and Renewable Energy (MoERE) have set a target of 20% of its energy generation 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.
Speaking at the ceremony, Dr. Mohamed Shaker said: “Today the Egyptian government has taken another step toward sustainable and enduring energy security through working towards a balanced energy mix. Under the leadership of H.E. President Abd El-Fattah Elsisy, the country has set ambitious renewable targets through the FiT Program that not only reflect our needs at present but also safeguard us for the future.”
Dr. Shaker added, “Energy projects are long-term by nature, and by selecting ACWA Power, we have partnered with a developer who is keen to invest in several energy infrastructure projects in Egypt. With the Benban projects, ACWA Power is coming on board as an investor, as well as a developer, and that commitment reflects its continued confidence in Egypt’s political stability and economic viability.”
Commenting on the signing, Paddy Padmanathan, President & CEO of ACWA Power said, “We are proud to partner with the Egyptian Government as the Government pursues an ambitious goal to ensure reliable lowest cost electricity generation capacity to increase quality of life to the people of Egypt and support continuous industrial expansion of the country, without compromising on its commitment to protect the planet by reducing carbon emission through deployment of increasing levels of renewable energy in the generation portfolio mix.”
Rajit Nanda, Chief Investment Officer of ACWA Power added: “Egypt has always been a strategic interest country for ACWA Power. ACWA Power has been in the Egyptian market since 2009, when the company submitted a bid for Dairut power plant and established ACWA Power Egypt in 2015, coinciding with the Egypt Economic Development Conference in Sharm El Sheikh. The Benban projects are a significant for being ACWA Power’s first investment in the country and we are confident that we will have many more opportunities to partner with the Ministry of Electricity in its pursuit of energy security and other strategic goals.”
ACWA Power is partnering with Tawakol and Hassan Allam Holding, two of the most reputable local companies in Egypt on the project, highlighting the company’s commitment and belief in the Egyptian Market.