Saudi Arabia's energy giant ACWA Power has signed a power purchase agreement (PPA) with the government of Egypt to develop, finance, construct, and operate the 200MW Kom Ombo Photovoltaic Plant.
The PV plant will cater to the power needs of 130k households and offset 280k tonnes of CO2 per year, once operational, with construction expected to be completed during Q1 2021.
Egyptian Minister of Electricity and Renewable Energy Dr. Mohamed Shaker said, “The signing of today’s project is a crucial building block that contributes to the Egyptian government’s vision – which aims to upscale sustainable energy security by molding a balanced energy mix.
In reflection of Egyptian President Abdel Fattah el-Sisi and the overall government’s ambitious vision, we are keen 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.”
Sharing his thoughts on the deal, Chief Executive Officer at Acwa Power Paddy Padmanathan, said, “The Egyptian government has long recognized renewable energy as a safe and secure source of 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.”
He added, “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 Egypt. This investment will not only generate 200MW of solar energy but will also power the creation of jobs by propagating a green economy and nurturing a vibrant society.”
Acwa Power Chief Investment Officer Rajit Nanda said, “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 USD2.3 billion.
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 rapid growth in renewable energy projects.”
The construction and development of PV plants in Egypt bolster the efforts of the Ministry of Electricity and Renewable Energy to increase the overall capacity of renewable energy to 20 percent by 2020.