ACWA Power and Masdar Group to seal 2GW Renewable Energy Deal with Egypt
A 2 GW renewable energy deal is expected to be officially sealed between the Saudi ACWA Power, the Abu Dhabi-based Masdar group and Egypt in the coming days.
The large-scale renewable energy project will consist of 1.5 GW solar power and 500 MW wind energy capacity.
ACWA Power and Masdar – that earlier this year signed an agreement with the Egyptian Electricity Holding Company – will develop at first a 200MW solar PV power plant, according to officials of both companies.
The project lives in the framework of a major renewable energy plan of the Egyptian government, aiming at generating 20% electricity from renewable sources by 2020.
In relation to this, Egypt has also launched a feed-in tariff scheme to boost investments in the solar power sector. According to the government's plan, solar PV projects between 500 kW and 20 MW in size will receive 13.6¢/kWh, and projects between 20 MW and 50 MW will receive 14.34¢/kW, with contracts for a 25-year term.
Numerous developers have shown their willingness to set up renewable energy projects in Egypt. Terra Sola – a Bahrain-headquartered investor and developer for integrated solar power projects – has announced a $3.5 billion investment to set up about 2 GW of solar power capacity over the next few years.
The 2020 goal set by Egypt’s New and Renewable Energy Authority consists of 12% from wind power and 8% from other clean technologies (both solar power and hydro power).