On Monday, the African Development Bank (AfDB) Board of Directors approved three senior loans totalling $55 million to finance three solar photovoltaic (PV) projects in Egypt. The projects fall under the second round of the country’s Feed-in-Tariff (FiT) Programme.
In order to meet the increasing energy demand, Egypt has developed an overarching regulatory framework for the development of renewable energy capacity with the aim of securing 20% of its energy generation from renewable sources by 2022.
In September 2014, Egypt launched a FiT Programme for a total of 4,300MW including 2,300MW of solar PV.
Three solar PV projects
The three Independent Power Producers benefiting from the loans include; Alcazar Energy Egypt Solar 1 (Alcazar I), Delta for Renewable Energy (Delta) and Shapoorji Pallonji Energy Egypt (SP), for a tenor of 18 years.
The bank also stated that Alcazar I and Delta will be extended a loan of $18 million each.
Under the sponsorship of the New Deal on Energy, the AfDB Board approved the financing of three projects with a total installed capacity of 150MW being developed by two sponsors, Alcazar Energy Partners (2x50MW) and Shapoorji Pallonji (50MW).
All three projects are located at the same site, on unoccupied desert land in Benban, 40km north of Aswan.
Commenting on the project, vice president for power, energy, climate change and green growth complex, Amadou Hott, said: “The three projects will increase Egypt’s power generation capacity, diversify its energy mix, enable significant fuel savings and reduce carbon emissions to the tune of 4.8 million metric tonnes over the PPA’s 25-year term.
“Moreover, the generation capacity of the three new solar plants will be enough to serve about 100,000 households,” Hott added. Read more…
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