Alfanar Energy has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for constructing a 50MW solar plant in Egypt, media reports in Egypt have revealed.
The 50MW project recently reached financial closure giving way for the PPA deal to be signed. The plant, which will be under the country’s feed-in tariff (FiT), will be located at the proposed 1.8GW Benban solar complex in the Aswan province.
Egypt’s first utility-scale solar plants is by being financed by the European Bank for Reconstruction and Development (EBRD) and the Islamic Development Bank (IDB), to a tune of $100mn.
Alfanar’s renewable energy projects director in Egypt, Mohamed Abdel Karim was quoted in a Daily News Egypt report saying that the Saudi firm paid the third instalment of the cost-sharing agreement after an increase of its value by about 35%.
$200mn has reportedly been allocated by Al Fanar Energy towards two new renewable energy projects in Egypt, with a total capacity of 100MW through the second phase of the FiT.