UAE developer signs contracts for 700MW of renewables capacity in Egypt

UAE-based AMEA Power has signed power purchase agreements (PPAs) with the Egypt Electricity Transmission Company (EETC) for 700MW of renewable energy capacity in the North African country

UAE-based AMEA Power has signed power purchase agreements (PPAs) with the Egypt Electricity Transmission Company (EETC) for 700MW of renewable energy capacity in the North African country.

AMEA Power will develop a 200MW photovoltaic (PV) solar and a 500MW wind power project, both under the independent power producer (IPP) model. The developer signed the PPAs on 10 December at a ceremony in the presence of Egypt’s prime minister, Mostafa Madbouly, the Minister of Electricity & Renewable Energy Mohamed Shaker.

The developer signed a 25-year PPA for the solar project, which will be located in the Kom Ombo area of Aswan, and a 20-year PPA for the wind project, which will be located in the Ras Ghareb area of the Egypt. The solar plant is due to be commissioned in the last quarter of 2021, while Ras Ghareb is due for completion in the third quarter of 2023.

The solar IPP is one of a number of major PV solar projects that are being developed in the Kom Ombo area. In April this year, Saudi Arabia’s Acwa Power was selected as preferred bidder for a 200MW PV project at Kom Ombo.

The Saudi developer submitted the lowest proposals of 2.752$c/kWh and 2.7499$c/kWh. The second-lowest proposal of 2.79117$c/kWh was submitted by Spain’s FRV, a fully owned subsidiary of Saudi Arabia’s Abdul Latif Jameel.

Egypt has set targets for renewable energy to contribute 20 per cent and 35 per cent of total energy produced by 2022 and 2035 respectively.