ACWA Power, a leading Saudi developer, investor, and operator of power generation and desalinated water plants has announced that the construction of the Kom Ombo Solar power plant will officially begin in the third quarter of the year 2021.
The announcement was made after the finalization of the virtual signing of a 25-year Power Purchase Agreement (PPA), Network Connection Contract, and Usufruct Agreement with senior Egyptian government officials and representatives from the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and ACWA Power.
According to ACWA, the financial closure of the project is scheduled for the third quarter of 2021, following the obtainment of a US$ 40M senior debt financing and a US$ 14M equity bridge loan from the European Bank of Reconstruction and Development (EBRD), in addition to a US$ 27.2M loan from the African Development Bank (AfDB) to finance the construction, development, and design of the 200 MW solar PV project.
Aim to produce 42% of Egypt’s electricity using renewable sources by 2035
Speaking after the agreements signing ceremony, Dr. Mohamed Shaker El Markabi, Egypt’s Minister of Electricity and Renewable Energy explained that the North African country is home to a wide range of untapped renewable resources particularly, wind and solar energy adding that the electrical capacities that can be generated from renewable sources can reach up to nearly 90 GW.
“Our aim, in line with this country’s Integrated Sustainable Energy Strategy, is to produce 42% of electricity using renewable sources by 2035. As I speak the necessary studies are being conducted to increase this percentage, stressing on maximizing the utilization of renewable energy in many areas, including water desalination and green hydrogen production.”