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Riyadh-based ACWA Power has signed three power purchase agreements with the Government of Egypt for three solar photovoltaic power plants in Benban.
Under the deal, which is part of the Feed-in-Tariff (FiT) program, ACWA Power will develop, finance, build, and own three photovoltaic (PV) projects in Northern Aswan with an aggregate capacity of 165.5 megawatt peak and total investment of SAR 712.5 million ($190 million), the company said in a statement on Tuesday.
Once the projects start operations in 2018, they will power 80,000 houses. Financial closing and launching construction are expected by the fourth quarter this year.
ACWA Power is partnering with Tawakol and Hassan Allam Holding, two local companies on the project.
The Egyptian government and the ministry of electricity and renewable energy have set a target of 20 percent of its energy generation from renewable sources by 2022. The feed-in tariff program aims to secure an initial generation of 2,000 MW of solar capacity and 2,000 MW of wind capacity.
Power demand in Egypt has grown 28 percent in recent years and the Benban PV facility is a key part of the government’s efforts to meet the rising needs.
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