Scatec Solar has signed 25-year Power Purchase Agreements (PPAs) for delivery of electricity from six solar plants in Egypt.
Scatec Solar expects the solar plants, located in the Ben Ban area near Aswan in Upper Egypt with a total capacity of 400 MW, to generate about 870 GWh of solar electricity per year. The projects are part of the 2 GW solar FiT programme launched by the Egyptian Government in 2015. The electricity produced from the 400 MW is expected to replace about 350,000 tons of CO2 emissions per year, supporting Egypt's emission reduction targets under the Paris Climate Agreement.
“With this programme the Government of Egypt is making important steps towards accessing clean and low cost electricity to drive development and economic prosperity” said Raymond Carlsen, CEO of Scatec Solar. “Scatec Solar and partners are making significant investments and long term commitment to Egypt”. '
The solar plants represent a total estimated investment of $450 million and are expected to generate annual revenues of around $60 million over the 25-year contract period. Scatec Solar will build, own and operate all six projects
The signing ceremony took place in Cairo on April 13th in the presence of Egyptian Minister of Electricity and Renewable Energy Dr. Mohamed Shaker El-Markabi and the Ambassador of Norway Mr. Sten Arne Rosnes.
A consortium of banks led by the European Bank for Reconstruction and Development (EBRD) is expected to support the six projects with a total debt of up to $350 million.
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. The company is a leading developer and owner of large-scale solar plants in Africa, Europe, Middle East and Americas. This latest project raises Scatec Solar’s project backlog to 1,131 MW.