Scatec Solar ASA (SSO) and its partners have closed financial deals for six solar photovoltaic (PV) power plants with an aggregate capacity of 400 MW in Egypt. The projects are set to be developed in the Benban Solar Park.
A consortium of international development finance institutions has agreed to provide $335 million in non-recourse project financing, accounting for 75 percent of the total planned capital expenditure budget, according to a Scatec Solar release.
The funding consortium consists of the European Bank for Reconstruction and Development (EBRD), the United Nations’ Green Climate Fund, the Dutch development bank FMO, the Islamic Development Bank (IsDB), and the Islamic Corporation for the Development of the Private Sector (ICD). The six deals represent the consortium’s first joint project in Egypt’s renewable energy sector.
A 25 percent equity stake in the project be held by project sponsors Scatec Solar, Norfund, Africa50, and the Infrastructure Fund for Africa.
“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 its partners are making significant investments and a long-term commitment to Egypt,” said Raymond Carlsen, chief executive officer of Scatec Solar.
“We are delighted to support the largest solar portfolio in Egypt’s Feed-in-Tariff scheme and to work again with Scatec Solar,” said EBRD’s Head of Power and Energy Utilities Harry Boyd-Carpenter.
The Green Climate Fund will be contributing $48 million in project funding, the highest amount it has ever disbursed to a single recipient and the first funding dispersed under its April 2017 cooperation agreement with EBRD. “This is a big step forward. It shows the potential for public and private climate finance to drive the low emissions energy transition in support of Egypt’s climate goals,” said Ayaan Adam, private sector facility director at the Green Climate Fund.
Scatec Solar and its partners have signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company. Project construction is scheduled to commence in early 2018, assuming that customary governmental conditions are met under the renewables program. Scatec Solar will be the turnkey engineering, procurement, and construction services provider for the projects. It will also be responsible for operations, maintenance, and asset management.
Image credit: Scatec Solar
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