-
The African Development Bank (AfDB) has approved $27.2 million for constructing the Kom Ombo solar project.
- The facility is being developed under a PPP by Saudi Arabia’s Independent Power Producer (IPP), Acwa Power and the Egyptian government.
- The AfDB believes that this project and other renewable energy projects will reduce greenhouse gas emissions by more than 7 million tonnes of CO2 over the next two and a half decades.
The African Development Bank (AfDB) has approved a loan of $27.2 million for the construction of the Kom Ombo solar project. The AfDB has provided this support as part of its’s New Deal on Energy for Africa initiative. This initiative aims to achieve universal energy access on the continent by 2025 through public-private partnerships (PPPs).
The 200MWp solar PV station is set to be constructed 40km from the city of Aswan. The facility is being developed under a PPP by Saudi Arabia’s Independent Power Producer (IPP), Acwa Power and the Egyptian government.
The power produced by the power plant will be sold to the Egyptian Electricity Transmission Company (EETC) under a 20-year power purchase agreement (PPA) at a tariff of $0.02752/kWh.
Read also: Kom Ombo Solar Power Plant in Egypt to be Upgraded by 300MW
The AfDB believes that increasing Egypt’s generation capacity via renewable energy sources will reduce greenhouse gas emissions by more than 7 million tonnes of CO2 over the next quarter-century. The bank also expects the project to reduce the cost of power for Egyptian businesses and households over the next few years.
The developer, Acwa Power, will invest $156.4 million via loans from several international financial institutions such as the European Bank for Reconstruction and Development (EBRD), the Arab Bank of Jordan, the Green Climate Fund (GCF) and the Opec Fund for International Development (OFID).