EGYPT – Africa-focused renewable energy independent power producer Globeleq, has completed the acquisition of the ARC for Renewable Energy S.A.E (ARC) 66 MWp solar PV plant located at the Benban Solar Park near Aswan, Egypt.
The ARC plant was developed by the SECI Energia, Enerray and Desert Technologies consortium as part of the second round of the Egyptian government’s feed-in-tariff program and achieved commercial operation on 4 November 2019 and provides clean electricity to the Egyptian Electricity and Transmission Company (EETC) under a 25-year power purchase agreement.
The project was financed by the International Finance Corporation (IFC), Globeleq’s shareholder, CDC Group (CDC), the Asian Infrastructure Investment Bank, Europe Arab Bank and Finance in Motion.
Globeleq will also provide ARC with asset management services and oversee the operation and maintenance contractor, GILA Al Tawakol.
During the acquisition process, Globeleq supported the original developers and lenders to achieve the final take-over certificate under the EPC contracts and ensure the project performs optimally. ARC will be connected to Globeleq’s remote monitoring center in Cape Town, South Africa, and will benefit from the extensive experience of its African-based operations team and complemented by a talented team based in Cairo and Aswan.
The local team will be led by Ghada Darwish as Country Manager.
“This transaction is an excellent opportunity to acquire an operational asset with an established team. The Egyptian government has set ambitious renewable energy targets and, as one of the largest investors in renewable power in Africa, we are pleased to support Egypt to deploy more renewable energy projects,” said Mike Scholey, the CEO of Globeleq.
Globeleq tapping into Egypt’s RE market
Egypt is one of the largest markets for renewable energy projects in Africa and aims to have 42% of renewable generation by 2035.
The country is a key target market for investors like Globeleq, and this acquisition provides a platform to support further investments in the country, including in solar PV, wind, battery energy storage, and, in the longer term, water desalination and green hydrogen projects.
Bertrand de La Borde, Global Head Energy & Mining at IFC commented: “As a long-term strategic investor with excellent operational performance in renewable energy, we are fully supportive of Globeleq’s acquisition. The company continues to create sustainable energy businesses, which support the UN’s Sustainable Development Goals, through investment in affordable, renewable generation.”
Globeleq has invested in the African renewable energy sector since 2002, and since 2014, has operated some of the very first large-scale solar and wind plants in South Africa.
The company currently majority owns and operates nine solar PV and wind projects across the continent.
It is nearing completion of its 52MWp Malindi solar plant in Kenya and recently broke ground on a 19MWp solar plus 2MW (7MWh) battery energy storage project in Mozambique, where it also prequalified for a solar tender and is developing two new wind projects.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
