ACWA Power, a Saudi utility developer, has signed a $123 million financing agreement for the development of a 200 MW solar power plant in Aswan governorate, Egypt.
The financing package includes loans from the European Bank for Reconstruction and Development, the OPEC Fund for International Development, the African Development Bank, the Green Climate Fund, Arab Bank, and the AfDB’s Sustainable Energy Fund for Africa. The Kom Ombo plant will contribute to the Egyptian government’s target to generate 42% of the country’s electricity from renewable energy sources by 2035.
The plant is scheduled to be commercially operational in January 2024, when it will supply power to 130,000 households. The project is the first tendered utility-scale solar project in Egypt and is part of the Energy Pillar of the Nexus Water-Food-Energy initiative. Launched by Egypt's Minister of International Cooperation in July 2022, the initiative aims to mobilize climate finance and private investments from multiple international financing institutions to accelerate the national climate agenda and support the country's green transition.
The new financing package reflects major institutions' confidence in ACWA Power's proven track record of developing large-scale projects. It will enable the company to work collaboratively with its partners in the public and private sectors to ensure that the project delivers a strong and sustainable outcome for all involved. The Kom Ombo project is expected to deliver power to consumers at among the lowest prices in Africa.
Other projects in Aswan include the Benban Solar Park, which is Africa's largest solar park and consists of 32 solar power plants with a total capacity of 1.8 GW.