Solar developer ACWA Power has secured a total US$114 million from financial institutions to fund the construction of what it claims will be Egypt’s largest private solar plant.
Global financial institutions the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank have all put forward loans totalling US$114 million for ACWA’s 200MW Kom Ombo solar PV project.
It is the fourth Egyptian renewables project in ACWA’s portfolio, president and chief executive Paddy Padmanathan said, adding that the investment “demonstrates the confidence in the Egyptian government’s ambitious renewable energy plans, being implemented through private-sector participation.”
The Saudi Arabian developer had already secured a US$27.2 million loan from AfDB in March, before signing a 25-year power purchase agreement (PPA) and network connection contract for the project with government officials earlier this month. Construction is expected to begin later this year, however, the project’s total development cost was estimated to be around US$156.4 million last month.
Egypt’s government has set a target of generating 42% of the country’s power demand from renewable resources by 2035.
The Kom Ombo plant will be based 800km south of Cairo and less than 20km from ACWA’s existing 1.8GW Benban solar complex. The company is also involved in the development of a 2.3GW natural gas facility set to come online in 2023.