Saudi Arabia-based energy company ACWA Power has signed a deal with multiple international investors for the provision of funds to implement what is claimed to be the largest private-sector solar energy project in Egypt.
As a result of the signed financing package, ACWA Power will receive $114 million from the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank.
The EBRD will provide ACWA Power with a $36 million loan whilst OPEC will provide $18 million, the AfDB $18.8 million, the GCF $23.8 million and the Arab Bank $18 million. This is in addition to equity bridge loans of up to $14 million from EBRD and $33.5 million from Arab Petroleum Investments Corporation.
The project will add 200 MW of renewables capacity to the Egyptian grid. The financing deal highlights the importance of the private sector in accelerating Egypt’s energy transition.
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Private-sector participation in the Kom Ombo project is the result of successful policy dialogue with the Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company (EETC), as well as a $3.6 million technical assistance programme, co-funded by the EBRD and the GCF, to support the EETC in administering competitive renewable energy tenders. In addition, the project has also benefitted from broader energy-sector reforms supported by the AfDB in recent years to scale up the involvement of the private sector.
Once complete, the new Kom Ombo plant will serve approximately 130,000 households. The project will be located less than 20 km from Africa’s biggest solar park, the 1.8GW Benban complex.
ACWA Power submitted the lowest tariff in what was the