HomeIndustry SectorsBusiness and marketsGlobeleq acquires 66MWp Benban solar PV plant in Egypt

Globeleq acquires 66MWp Benban solar PV plant in Egypt

An independent power company in Africa, Globeleq, recently acquired a 66MWp solar PV plant located at the Benban Solar Park near Aswan, Egypt.

The ARC for Renewable Energy S.A.E (ARC) plant was developed by the SECI Energia, Enerray and Desert Technologies consortium as part of the second round of the Egyptian government’s feed-in-tariff programme.

It achieved commercial operation on 4 November 2019 and provides clean electricity to the Egyptian Electricity and Transmission Company (EETC) under a 25-year power purchase agreement.

The project was financed by the International Finance Corporation, Globeleq’s shareholder, CDC Group, the Asian Infrastructure Investment Bank, Europe Arab Bank and Finance in Motion.

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Globeleq will also provide ARC with asset management services and oversee the operation and maintenance contractor, GILA Al Tawakol.

Egypt is one of the largest markets for renewable energy projects in Africa and aims to have 42% of renewable generation by 2035. The country is a key target market for Globeleq and this acquisition provides a platform to support further investments in the country, including in solar PV, wind, battery energy storage and, in the longer term, water desalination and green hydrogen projects.

Mike Scholey, CEO of Globeleq indicated: “This transaction is an excellent opportunity to acquire an operational asset with an established team. The Egyptian government has set ambitious renewable energy targets and, as one of the largest investors in renewable power in Africa, we are pleased to support Egypt to deploy more renewable energy projects.”

The British Ambassador to Egypt, Gareth Bayley, said: “I am pleased to see Globeleq’s commitment to the Egyptian renewable energy market. As the UK prepares to host, in just two weeks, the landmark COP26 Climate Change Conference, investments like this shine a light on clean growth, at the heart of the UK’s trade agenda. We will continue our support for Egypt’s ambitious sustainable energy strategy.”

He added: “Congratulations to Globeleq on this important milestone, and I look forward to seeing many more high-value and high-profile UK investments in Egypt’s renewable energy sector in future.”

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Bertrand de La Borde, Global Head Energy & Mining at IFC, commented: “As a long-term strategic investor with excellent operational performance in renewable energy, we are fully supportive of Globeleq’s acquisition. The company continues to create sustainable energy businesses, which support the UN’s Sustainable Development Goals, through investment in affordable, renewable generation.”

Holger Rothenbusch, Managing Director and Head Infrastructure and Climate, CDC Group, said: “The acquisition of ARC ensured the plant reached completion, achieved optimal performance and benefits from the presence of a long-term strategic investor with an extensive track record in Africa.”

Nomvuyo Tena
Nomvuyo Tena is a Content Producer at Clarion Events Africa and is as passionate about the energy transition in Africa as she is about music and Beyonce.