Scatec Solar ASA, KLP Norfund and partners have achieved financial close for six solar PV power plants in Egypt totaling 400 MW.
The six projects are located in the Benban solar park in Aswan in Upper Egypt. The annual 870 GWh of electricity produced from the 400 MW solar plants will avoid about 350,000 tons of CO2 emissions per year, supporting Egypt’s emission reduction targets under the Paris Climate Agreement.
With this programme, the government of Egypt is making important steps towards accessing clean and low-cost electricity to drive development and economic prosperity.
(Raymond Carlsen, CEO of Scatec Solar)
Scatec Solar, KLP Norfund Investments AS and Africa50 (the Infrastructure Fund of the African Development Bank) will together provide 25% equity to the projects. Last April, a 25-year Power Purchase Agreement (PPA) was signed with the Egyptian Electricity Transmission Company and the required condition precedents for the PPA to become effective were delivered now in October.
Construction is scheduled to commence in early 2018 upon customary governmental conditions under the renewables program being met.
Investing in clean energy is of high priority for Norfund as increased access to energy is crucial for development and poverty reduction. Norfund's strategy is to invest with the most professional and experienced industrial partners, and we really appreciate this partnership with Scatec Solar.
(Kjell Roland, CEO of Norfund)