Scatec Solar and partners have signed 25-year Power Purchase Agreements (PPA) for delivery of electricity from six solar plants totaling 400 MW with the government of Egypt.
All the plants are located in Benban and are expected to generate about 870 GWh of solar electricity per year.
These projects are part of the 2 GW solar FiT program launched by the Egyptian government in 2015.
“With this program the Government of Egypt is making important steps towards accessing clean and low cost electricity to drive development and economic prosperity. Scatec Solar and partners are making significant investments and long term commitment to Egypt,” said Raymond Carlsen, CEO of Scatec Solar.
Total investments for the 400 MW of solar plants is estimated at $450 million and are expected to generate annual revenues of about $60 million over the 25-year contract period.
Scatec Solar will build, own and operate all six projects and its share of equity investments will be in the range of $50-70 million.
Scatec Solar is partnering with local developers and with KLP Norfund Investments for equity investments in the projects and may add additional partners to an equity consortium before financial close.
European Bank for Reconstruction and Development (EBRD) is leading a consortium of banks that is expected to support the six projects with a total debt of up to $350 million.