Egypt’s solar PV project, developed under the feed-in-tariff (FiT) renewable energy programme, has received international backing.
The Islamic Corporation for the Development of the Private Sector (ICD) and Alfa Solar Co have signed facility agreements for a US $28.5m Shariah-compliant senior financier to part-fund the development, construction and operation of the Benban solar complex.
Additionally, the pair is partnering with the European Bank for Reconstruction and Development. It is providing the project with a matching conventional loan facility.
The project will be in Aswan province. It is going to be one of the largest solar energy parks in the world, according to a press release.
Benban solar complex
The project is expected to abate up to 100,000 tonnes of CO2-equivalent per annum, supporting Egypt’s emission reduction targets under the Paris Climate Agreement, as well as promoting sustainable energy development and private sector participation in the country’s energy landscape.
Alfa Solar concluded a power purchase agreement with the Egyptian Electricity Transmission Co. (EETC) in May 2017 and is also working with ICD and EBRD to achieve financial close by October 2017.
Khaled Mohammed Al-Aboodi, the CEO of ICD, expressed his appreciation for the effort invested to reach this milestone by all the parties. He also thanked the Egyptian government and its various agencies for their commitment and support for the programme.
Effects of climate change
The Chairman of Alfa Solar Sabah Mohammed Al Mutlaq, said that globally, countries are experiencing the effects of climate change. Renewable energy investors and financier’s role is vital to cultivate more investment in the region for green energy. It will also scale down the effects of global warming.
“This partnership will assist the socio-economic development in Benban by providing local population with infrastructure, job creation and skills training.”
Mutlaq further said that the region has tremendous potential when generating power from the natural resources, and Alfanar will continue to actively consider venturing with ICD for additional renewable technology projects in solar, wind as well as energy from waste.”