Norway’s independent power producer, Statec Solar, has signed 25-year power purchase agreements (PPAs) with the government of Egypt for the supply of 400 megawatts, though six new solar power plants, Kallanish Energy learns from the company.
The value of the PPAs was not disclosed, but Statec expects the solar photovoltaic projects to demand a total investment of $450 million. The company’s share of equity investment will be in the range of $50-70 million. It’s partnering with KLP Norfund Investments and local developers, and is also considering additional partners in the consortium.
The European Bank for Reconstruction and Development (EBRD) is leading a consortium of banks expected to provide up to $350 million in funding to support the six projects, Statec said.
The plants, which will be built in the Ben Ban area near the Egyptian city of Aswan, are part of the 2,000 MW solar feed-in-tariff (FiT) program launched by the government in 2015. Their power generation is expected to replace roughly 350,000 metric tonnes per year of carbon dioxide emissions, helping Egypt reach its emission reduction targets under the Paris agreement.