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A new purchase power agreement will deliver 400 MW of electricity to Egypt, replacing about 350,000 tons of carbon emissions
The 25-year agreement, signed by Scatec Solar and its partners in the presence of Egypt's minister for electricity and renewable energy, Dr Mohamed Shaker El-Markabi and the ambassador of Norway. Mr Sten Arne Rosnes.
Lovated in the Ben Ban area near Aswan in Upper Egypy, the six solar plants will each produce 870 GWh of solar electricity per year. These plants are part of the 2 GW solar FiT programme, which was launched by the Egyptian government in 2015. The electricity produced from the plants is expected to replace about 350,000 tons of carbon emissions, which will assist with meeting Egypt's emissions targets under the historic Paris Climate Agreement.
Total investment in the plants is estimated at US$450mn and the plants are expected to generate annual revenues in the region of US$60mn over the 25-year contract period. Scatec Solar will build, own and operate the plants and has partnered with local developers and KLP Norfund Investments for equity in the projects. Additional partners may be added to an equity consortium before financial close.