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The EBRD has announced the mobilisation of $114m to develop the Kom Ombo solar power plant.
- Acwa will also invest $156.4m in the project.
- Acwa Power will sell the energy produced by the power plant to the Egyptian Electricity Transmission Company (EETC) at a tariff of $0.02752/kWh.
The European Bank for Reconstruction and Development (EBRD) has announced that it will, together with other financial institutions, provide $114 million to develop the Kom Ombo solar power plant project in Egypt. The project is being developed by Saudi independent power producer (IPP) Acwa Power. Acwa Power will sell the energy produced by the power plant to the Egyptian Electricity Transmission Company (EETC) under a 20-year power purchase agreement (PPA) at a tariff of $0.02752/kWh.
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Of the $114m, EBRD will provide $36m, the Opec Fund for International Development (Ofid) will provide $18m, $17.8m will come from the African Development Bank (AfDB). The Green Climate Fund (GCF) and Arab International Investment Bank (AII) will provide $23.8m and $18m, respectively. Arab Petroleum Investments Corporation (Apicorp) will provide $33.5m, while the EBRD will also provide a $14m bridge loan. Acwa will also invest $156.4m in the project. These funds will enable Acwa Power to complete the project financing.
The Egyptian government has already approved the necessary agreements for developing the project, which is set to be sited 20km from the Benban solar complex. This participation by an IPP in the Kom Ombo solar project is a positive indication of the success of the EBRD and the VCF technical assistance programme involving the Egyptian Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company (EETC). This programmer, which aims to help the EETC manage competitive tenders for clean energy production, ensures that IPPs are instrumental in Egypt’s solar industry development.