African Development Bank issues $27.2 million loan for a 200 MW solar park in Egypt, which is expected to meet the increasing demand of electricity in Egypt. (Photo Credit: ACWA Power)
- African Development Bank lends $ 27.2 million for the design, construction and operation of a 200 MW solar PV plant at Kom Ombo, in southern Egypt
- This project is worth $156.4 million and is being developed by leading Saudi Arabian developer ACWA Power
- The project is expected to meet Egypt’s rising electricity demands
- European Bank for Reconstruction and Development, the Green Climate Fund, the Arab Bank and the OPEC Fund for International Development will also fund the project
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The African Development Bank (AfDB) issued an announcement saying that it has lent $ 27.2 million, structured in the form of a senior loan, for the design, construction and operation of a 200 MW solar photovoltaic plant at Kom Ombo, in southern Egypt. This project, which is worth $156.4 million, is being developed by leading Saudi Arabian developer ACWA Power.
Excited over the development, AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki 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 achieving its ambition of 20% renewable energy by 2022,” he added.
Despite COVID-19 pandemic, Egypt’s economy has continued to grow and its electricity demand have been increasing at an average annual rate of 7%. By increasing Egypt’s installed power generation capacity from renewable sources, the plant looks to reduce greenhouse gas emissions of more than 7 million tCO2e equivalent over a 25-year period.
Apart from AfDB, the project will also receive funding from the European Bank for Reconstruction and Development, the Green Climate Fund, the Arab Bank and the OPEC Fund for International Development. This project is expected to create about 800 jobs.
In 2019 too, ACWA Power had signed a power purchase agreement (PPA) with the Government of Egypt for the 200 MW Kom Ombo PV Plant, which the Saudi Arabian energy company said it will develop, finance, construct and operate (see ACWA Power Secures PPA For 200 MW Egypt PV Plant)