EGYPT – Saudi Arabia based energy company, Acwa Power has secured a senior debt loan of US$54 million from the European Bank of Reconstruction and Development (EBRD) for the development of a solar power plant in Egypt.
The funds according to a report by Africa Energy Portal will be used to specifically support the construction of the Kom Ombo solar photovoltaic power plant that is being developed by Acwa Power in Upper Egypt.
Upon completion, the EBRD funding solar photovoltaic power plant is expected to generate about 200 MWp of power.
It will be composed of two-sided solar panels that are capable of capturing the sun’s rays on both sides of the module.
Acwa Power revealed that construction of the solar power plant is expected to be completed in the first quarter of 2021.
EBRD explained that the the funding will be provided in the form of a “senior debt” of up to $40 million, co-financed with other banks, and a “bridge loan” of up to $14 million.
According to cost estimates from Acwa Power, the construction of the Kom Ombo solar photovoltaic power plant will require an investment of $155.4 million.
“Once operational, the plant will meet the electricity needs of 130,000 households and offset 280,000 tonnes of carbon dioxide per year,” said Acwa Power when signing the contract to build the solar power plant.
The Kom Ombo solar power plant has a power purchase agreement (PPA), which will run for 25 years.
The PPA was signed by Rajit Nanda, Acwa Power’s chief investment officer, and Sabah Mashaly, the president of the Egyptian Electricity Transmission Company (EETC), the company that provides Egypt’s electricity utility.
According to a report by Africa Energy Portal EETC will purchase the kWh of electricity at $0.027 52.
“This is the lowest tariff contracted to date for solar energy in North Africa,” said Mohamed Shaker, the Egyptian Minister of Electricity and Renewable Energy.
Apart from European Bank of Reconstruction and Development, the Kom Ombo solar project is also supported by the French Development Agency (AFD) and the Japan International Cooperation Agency (JICA).
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