ACWA Power signed a Power Purchase Agreement (PPA) with the Government of 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 His Excellency Dr. Mostafa Madbouly, Prime Minister of Egypt; His Excellency Osama Naqli, the Ambassador of the Kingdom of Saudi Arabia at Egypt; and Dr. Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy.
The PPA was signed by Rajit Nanda, Chief Investment Officer at ACWA Power, and Eng. 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.
Commenting on the occasion, Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy in Egypt, 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 moulding a balanced energy mix".
“In reflection of HH Abdel Fattah El-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", Dr. Shaker added.
Paddy Padmanathan, President and CEO 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.”