In North Africa, Egypt has secured a future 400MW of solar power through a 25-year power purchase agreement with several partners.
The agreement was signed earlier this month with the Egyptian Minister of Electricity and Renewable Energy Dr. Mohamed Shaker El-Markabi and the Ambassador of Norway Mr. Sten Arne Rosnes and independent power producer (IPP) Scatec Solar.
The deal is for the delivery of electricity from six solar plants totalling 400MW (DC).
Solar power purchase agreements
The six plants are located in the Ben Ban area near Aswan in Upper Egypt and are set to produce an estimated 870GWh of solar electricity per annum.
These projects are part of the 2GW solar FiT programme launched by the Egyptian Government in 2015.
According to the IPP, the electricity produced from the 400MW is expected to replace about 350,000 tonnes of CO2 emissions per year, supporting Egypt’s emission reduction targets under the Paris Climate Agreement.
‘With this programme the Government of Egypt is making important steps towards accessing clean and low cost electricity to drive development and economic prosperity. Scatec Solar and partners are making significant investments and long term commitment to Egypt” said Raymond Carlsen, CEO of Scatec Solar.
Total investments for the 400MW of solar plants is estimated to $450 million and the plants are expected to generate annual revenues of about $60 million over the 25-year contract period.
Scatec Solar will build, own and operate all six projects and will secure partnerships with local developers; and with KLP Norfund Investments for equity investments in the projects.
According to a company statement they may add additional partners to an equity consortium before financial close.