ACWA signs Power Purchase Agreement for 200 MW photovoltaic plant in Egypt
ACWA Power, a leading international developer and operator of power generation and water desalination facilities from Saudi Arabia has signed a Power Purchase Agreement (PPA) with the Government of Egypt to develop, finance, construct and operate the Kom Ombo photovoltaic plant, which will yield a capacity of 200 MW.
The signing took place under the patronage of His Excellency. Mostafa Madbouly, Prime Minister of Egypt; His Excellency Osama Naqli, the Ambassador of the Kingdom of Saudi Arabia at Egypt; and Dr. Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy.
The PPA was signed by Rajit Nanda, Chief Investment Officer at ACWA Power, and Eng. Sabah Mashaly, Chairman of the Egyptian Electricity Transmission Company, in the presence of senior executives from ACWA Power and delegates from the Egyptian Ministry of Electricity and Renewable Energy.
Construction is expected to be completed during the first quarter of 2021. Once operational, the plant will cater for the power needs of 130,000 households, in addition to offsetting 280,000 tons or carbon dioxide per year.
'' The signing of today's project is a crucial building block that contributes to the Egyptian government's vision - which aims at upscale sustainable energy security by molding a balanced energy mix. In reflection of HH Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, and the overall government's ambitious vision, we are able to leverage renewable energy sources through transparent competitive procurement, which will cater to the country's current clean energy needs while simultaneously safeguarding our future, "says Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, Egypt.
“The lowest tariff contracted for a solar energy in North Africa is not only a reflection of continuing improvement in technology and the entrepreneurship of the developer ACWA Power, but also of the attractiveness of Egypt as an investment destination and the trade and commercial environment or Egypt to enable facilities or this nature to be financed, constructed and operated efficiently, "Dr. Shaker added.
'' The Egyptian government has long recognized renewable energy as a safe and secure source or power to reliably provide electricity to its citizens while advancing their efforts in reducing carbon emissions. The Kom Ombo project that we are embarking upon today is a very strong testament to ACWA Power's commitment to contribute to this mission, "said Paddy Padmanathan, Chief Executive Officer of ACWA Power.
Padmanathan added: “ACWA Power works alongside its partners to deploy the most up-to-date technologies and leverage sound investment opportunities to continuously reduce the cost of generating renewable energy, which is one of the key pillars in driving sustainable economic development of a country . As a Saudi company, we are particularly proud of this partnership with our brothers and neighbors that will accelerate the deployment of clean energy, and contribute to the social and economic development of the Arab Republic of Egypt. This investment will not only generate 200 megawatts of solar energy, but will also power the creation of jobs by propagating a green economy and nurturing a vibrant society. ”
'' We commenced our operations in Egypt through the launch of the Benban PV IPP project, and we are currently in discussions with the Egyptian Ministry of Electricity to finalize agreements for the 2250 MW Dairut CCGT, with an investment value of 2.3 billion US dollars. Today, through the deployment of the Kom Ombo Plant, we are further branching our commendable trail in Egypt. Moreover, this clean energy project embodies the extension of our investments in the renewable sector in the continent, particularly in the North African region, which is witnessing a rapid growth in renewable energy projects, ”Rajit Nanda, Chief Investment Officer or ACWA Power.
The construction and development of new PV plants in Egypt bolsters the efforts of the Ministry of Electricity and Renewable Energy to increase the overall capacity of renewable energy to 20% by the year 2020.