Scatec Solar and partners sign PPA for 400 MW in Egypt

Scatec Solar and partners have signed 25-year PPA for delivery of 400 MW (DC) electricity from six solar plants  with the Government of Egypt. The signing ceremony took place in Cairo on April 13 in the presence of Egyptian Minister of Electricity and Renewable Energy Dr. Mohamed Shaker El-Markabi and the Ambassador of Norway Mr. Sten Arne Rosnes.

The solar plants are located in Ben Ban area near Aswan. They are expected to generate about 870 GWh of solar electricity per year. These projects are part of the 2 GW solar FiT programme launched by the Egyptian Government in 2015.

Total investments for the 400 MW of solar plants is estimated to USD 450 million and the plants are expected to generate annual revenues of about USD 60 million over the 25-year contract period. Scatec Solar will build, own and operate all six projects and Scatec Solar’s share of equity investments will be in the range of USD 50-70 million. Scatec Solar is partnering with local developers and with KLP Norfund Investments for equity investments in the projects and may add additional partners to an equity consortium before financial close.European Bank for Reconstruction and Development (EBRD) expected to support the six projects with a total debt of up to USD 350 million.

Image Source: Scatec Solar