Egypt seals PPA for long-term renewable energy projects
The signing ceremony in Egypt between H.E. Prime Minister of Egypt, Dr. Sherif Ismail and H.E. Ambassador of Saudi Arabia, Mr. Ahmed Al Qattan.
On Tuesday, ACWA Power signed a power purchase agreement (PPA) with the government of Egypt for long-term renewable energy projects to be executed under Round 2 of the Feed-in-Tariff (FiT) programme.
Under the agreement, the Saudi Arabian energy company will develop, finance, build, own and operate three solar photovoltaic (PV) power plants in Benban with collective capacity of 165.5MWp.
Present at the signing ceremony was the President & CEO of ACWA Power, Paddy Padmanathan, the Minister of Electricity and Renewable Energy, Dr. Mohamed Shaker, H.E. Prime Minister of Egypt, Dr. Sherif Ismail, H.E. Ambassador of Saudi Arabia, Mr. Ahmed Al Qattan.
The renewable energy projects are expected to achieve financial close and commence construction by Q4 2017. Once the projects start operations in 2018, they are forecast to power 80,000 houses while saving around 156,000 tonnes of CO2 a year.
Speaking at the ceremony, Dr. Shaker said: “Today the Egyptian government has taken another step toward sustainable and enduring energy security through working towards a balanced energy mix. Under the leadership of H.E. President Abd El-Fattah Elsisy, the country has set ambitious renewable targets through the FiT Programme that not only reflect our needs at present but also safeguard us for the future.”
Dr. Shaker added: “Energy projects are long-term by nature, and by selecting ACWA Power, we have partnered with a developer who is keen to invest in several energy infrastructure projects in Egypt.
“With the Benban projects, ACWA Power is coming on board as an investor, as well as a developer, and that commitment reflects its continued confidence in Egypt’s political stability and economic viability.”
Paddy Padmanathan, President & CEO of ACWA Power also commented: “We are proud to partner with the Egyptian government as the government pursues an ambitious goal to ensure reliable lowest cost electricity generation capacity to increase quality of life to the people of Egypt and support continuous industrial expansion of the country, without compromising on its commitment to protect the planet by reducing carbon emission through deployment of increasing levels of renewable energy in the generation portfolio mix.”
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