Scatec Solar and partners sign power purchase agreements for solar plants in Egypt

ScatecThe signing ceremony took place in Cairo in presence of Egypt’s minister of electricity and renewable energy Mohamed Shaker El-Markabi (right) and the Ambassador of Norway Sten Arne Rosnes. (Image source: Scatec Solar)Scatec Solar and partners have signed 25-year power purchase agreements for delivery of electricity from six solar plants totalling 400MW with Egypt

All the plants located in Ben Ban area near Aswan in Upper Egypt are expected to generate about 870 GWh of solar electricity per year. These projects are part of the two gigawatts solar FiT programme launched by the Egyptian government in 2015. The electricity produced from the 400MW is expected to replace about 350,000 tonnes of CO2 emissions per year, supporting Egypt’s emission reduction targets under the Paris Climate Agreement.

“With this programme, Egypt is making important steps towards accessing clean and low cost electricity to drive development and economic prosperity. Scatec Solar and partners are making significant investments and long term commitment to Egypt,”' said Raymond Carlsen, CEO of Scatec Solar.

The total investment for the 400MW of solar plants is estimated at US$450mn and the plants are expected to generate annual revenues of about US$60mn over the 25-year contract period. Scatec Solar will build, own and operate all six projects and Scatec Solar’s share of equity investments will be in the range of US$50-70mn. Scatec Solar is partnering with local developers and with KLP Norfund Investments for equity investments in the projects and may add additional partners to an equity consortium before financial close.

European Bank for Reconstruction and Development (EBRD) is leading a consortium of banks that is expected to support the six projects with a total debt of up to US$350mn.

Scatec Solar is one of the leading developers and owners of large-scale solar plants in Africa, Europe, Middle East and Americas. With the latest addition, Scatec Solar’s project backlog consists of 1,131MW.

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