BE2C2 Report — Saudi EPC company Alfanar Group will sign a power purchase agreement with the Egyptian Electricity Transmission Company next week for producing solar electricity and selling in bulk to the utility company.
Mohamed Abdel Karim, director of Alfanar’s renewable energy projects in Egypt, said the company has achieved financial closure of a 50MW solar power plant on public-private basis with investment of up to US$5.56 million, reported Daily News Egypt.
The project will be financed by the European Bank for Reconstruction and Development (EBRD) and the Islamic Development Bank (IDB).
The agreement requires companies secure 70% of finance from foreign banks and 30% from local banks.
The Riyadh-headquartered company said it has allocated US$200m for the establishment of two renewable energy projects in Egypt, with a total capacity of 100MW.
The solar power projects of capacities ranging from 500 kW to less than 20MW will be sold at 44 cents per kWh, while the projects of capacities ranging from 20MW to 50MW will be sold at 47 cents per kWh.
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These plants are part of the 2 GW solar FiT program launched by the Egyptian government in 2015. The electricity produced from renewable plants like Alfanar’s will assist with meeting Egypt’s emissions targets under the historic Paris Climate Agreement.
The government has set up a plan to produce 4,300MW from new and renewable sources, according to the feed-in tariff scheme, with investments of up to $7bn.
A Norwegian group recently inked power purchase agreements with Egypt for six solar projects which will deliver 400 MW of electricity, replacing about 350,000 tons of carbon emissions.
In a related note, Alfanar recently participated in two tenders for the development of 750 megawatts solar installations in the western state of Rajasthan, India.
The tenders were for the development of a 500-megawatt and a 250-megawatt block at the Bhadla solar power park.
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