European solar power developer Scatec Solar has achieved a major milestone in its efforts to expand its footprint in the Egyptian solar market.
Scatec Solar recently announced that it signed power purchase agreements for solar power projects of cumulative capacity of 400 megawatts. The company will be set up under the first phase of feed-in tariff scheme announced by the Egyptian government.
The company had signed agreements with the Egyptian government in 2015 for 250 megawatts. It is not clear if the latest agreements for 400 megawatts are in addition to the old agreements.
The 400 megawatts capacity will be spread across six projects located in Ben Ban region. The projects are expected to require a total investment of $450 million with $50-70 million equity investment coming from Scatec Solar; balance debt finance will likely come from the European Bank for Reconstruction and Development.
Norfund is also expected to partner with Scatec Solar to set up the projects. In 2014, the two signed an agreement to form a joint venture to invest in solar power projects in developing and least developed countries.
The projects are expected to offset around 350,000 tonnes of carbon dioxide emissions every year and contribute significantly to Egypt’s target to generate 870 GWh from renewable energy sources.