AfDB Approves $ 27 Million for Development of 200 MW Solar Project in Egypt
The African Development Bank (ADB) approved a loan of $ 27.2 million for the design, construction and operation of a 200 MW solar project at Kom Ombo in Egypt.
The project is expected to reduce the cost of electricity for businesses and the residential sector, as well as reduce greenhouse gas emissions by 7 million tonnes of CO2 equivalent over 25 years and create 800 jobs during its construction.
The project is estimated at $ 156.4 million. In addition to the ADB loan, the European Bank for Reconstruction and Development, the Green Climate Fund, the Arab Bank and the OPEC Fund for International Development will also contribute to the financing of the project.
The project, located 800 km south of Cairo, belongs to Saudi Arabia ACWA power supply, a leading developer, investor and operator of power generation and desalinated water projects around the world.
Kevin Kariuki, AfDB Vice President for Electricity, Energy, Climate and Green Growth, said: “We are delighted to support this project which will offer one of the lowest generation tariffs on the continent. . The project supports Egypt’s energy transition and contributes to the achievement by the country of its target share of 20% of renewable energies by 2022. ”
Egypt’s economy has continued to grow despite the COVID-19 pandemic, with demand for electricity increasing at an average annual rate of 7%.
The country’s network is connected to the networks of neighboring countries of Libya and Sudan. The project has the potential to greatly contribute to energy trade and access to electricity in the region.
The project is in line with the Egyptian national sustainable energy strategy and the bank’s “New Deal on Energy for Africa”, which aims to increase the share of renewable energies in Africa’s energy mix by financing the African energy sector.
Egypt is one of the founding members of the AfDB and, since its inception, the bank has financed more than 100 projects in Egypt in various sectors.
In December of last year, the Board of Directors of the AfDB approved a $ 20 million (~ 1.46 billion yen) concessional investment from the Sustainable Energy Fund for Africa (SEFA) to establish the COVID-19 off-grid recovery platform. SEFA is a special fund managed by the AfDB that provides catalytic finance for renewable energy. The $ 50 million (~ 3.65 billion yen) blended finance initiative will provide relief and recovery capital to energy access companies and support them during and beyond the pandemic.
Previously, ACWA Power had sign a power purchase agreement with the Egyptian government to finance, develop, construct and operate the 200 MW Kom Ombo solar power project. ACWA Power obtained this project through a call for tenders launched in August 2018.
Rakesh is a journalist at Mercom India. Prior to joining Mercom, he held numerous positions as Business Correspondent, Associate Editor, Senior Content Editor and Sub Editor at bcfocus.com, CIOReview / Silicon India, Verbinden Communication and Bangalore Bias. Rakesh holds a BA in English from Indira Gandhi National Open University (IGNOU). More articles by Rakesh Ranjan.