Saudi Arabia-based ACWA Power on Saturday has signed a Power Purchase Agreement (PPA) with Egypt to develop, finance, construct and operate the Kom Ombo photovoltaic plant, which will yield a capacity of 200 MW. The signing took place under the patronage of the Egyptian Prime Minister Moustafa Madbouly, Osama Naqli, the Ambassador of Saudi Arabia to Egypt, and Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy. The PPA was signed by Rajit Nanda, Chief Investment Officer at ACWA Power, and Sabah Mashaly, chairman of the Egyptian Electricity Transmission Company, in the presence of senior executives from ACWA Power and delegates from the Egyptian Ministry of Electricity and Renewable Energy. Construction is expected to be completed during the first quarter of 2021. Once operational, the plant will cater to the power needs of 130 thousand households, in addition to offsetting 280 thousand tons of carbon dioxide per year. Mohamed Shaker, Minister of Electricity and Renewable Energy said that the signing of the project is a crucial building block that contributes to the Egyptian government's vision – which aims to upscale sustainable energy security by moulding a balanced energy mix. In reflection of HH Abdel Fattah al-Sisi, President of the Arab Republic of Egypt, 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". "The lowest tariff contracted to date for a solar energy in North Africa is not only a reflection of continuing improvement in technology and the entrepreneurship of the developer ACWA Power, but also of the attractiveness of Egypt as an investment destination and the trade and commercial environment of Egypt to enable facilities of this nature to be financed, constructed and operated efficiently", Shaker added. Paddy Padmanathan, Chief Executive Officer of ACWA Power said: “The Egyptian government has long recognised 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.” Padmanathan added: "ACWA Power works alongside its partners to deploy the most up-to-date technologies and leverage sound investment opportunities to continue reducing the cost of generating renewable energy, which is one of the key pillars in driving sustainable economic development of a country.” “As a Saudi company, we are particularly proud of this partnership with our brothers and neighbours that will accelerate the deployment of clean energy, and contribute to the social and economic development of the Arab Republic of Egypt. This investment will not only generate 200 megawatts of solar energy, but will also power the creation of jobs by propagating a green economy and nurturing a vibrant society," Padmanathan said. Rajit Nanda, Chief Investment Officer of ACWA Power: “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 finalise agreements for the 2250 MW Dairut CCGT, with an investment value of $2.3 billion.” Yesterday, 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 a rapid growth in renewable energy projects. The construction and development of new PV plants in Egypt bolsters the efforts of the Ministry of Electricity and Renewable Energy to increase the overall capacity of renewable energy to 20% by the year 2020. Source: ACWA Power
