An offer proposed by the Abu Dhabi Future Energy Company (Masdar) has been approved by the Egyptian government, agreeing to develop over $900m worth of solar energy farms.
A comment from an anonymous Egyptian official explained that the sites in the proposal would account for 1,000MW total production capacity. Additionally, they will be located in Upper Egypt.
They went on to explain that project development will utilise the build, operate, and own method (BOO), with Masdar taking ownership of its implementation and financing. Egypt’s state-owned Electricity Transmission Company (EETC) will purchase 25 years of the sites’ production – their expected lifecycle.
CEO for Infinity Power, Mohamed Mansour, explains that the project will begin generating electricity in 2032 and will cost $10bn to build. He adds:
“The final contracts for the projects and the energy purchase price are being reviewed in preparation for signing the agreements by next October between the New and Renewable Energy Authority.
“Which will allocate the land for the project based on the usufruct system in exchange for 2% of the energy produced by the project, and the EETC, which will purchase the energy produced, and the UAE company as the other party.”
The projects will be completed and connected to the national grid by the end of 2025, with Masdar recently signing another contract with the Egyptian government to build a 200MW solar project in Southern Egypt.
The country aims to increase its renewable energy production to 42% of its total capacity by 2035.
