Enerray S.p.A. has invested to develop three ground-mounted photovoltaic projects in Egypt. The PV plants will become a part of the 1.8 GW Benban Solar Park, the largest private-sector financed PV Park in the Middle East and North Africa.
One project of 25 MWp has been developed by Winnergy for Renewable Energy Projects S.A.E. a special purpose vehicle owned by a JV between Al Tawakol Electrical S.A.E., Enerray S.p.A., Desert Technologies Industries Co. Ltd. The second project of 25 MWp has been developed by Arinna Solar Power S.A.E., a special purpose vehicle owned by a JV between Al Bilal Group for General Contracts Limited, Enerray S.p.A., Desert Technologies Co. Ltd and Tech Project Development Group Incorporated . Lastly, the largest project of 66 MWp has been developed by ARC for Renewable Energy S.A.E., a special purpose vehicle owned by a JV between SECI Energia S.p.A., Enerray S.p.A. and Desert Technologies Industries Co. Ltd.
The projects are co-financed by the International Finance Corporation and other lenders under the IFC’s Nubian Suns renewable energy financing programme including the Asian Infrastructures Investment Bank, CDC, European Arab Bank, Green for Growth Fund, while Citibank is acting as Security Agent and Accounts Bank.
The financing, approved under the second round of Egypt’s solar feed-in tariff program, will be supported by a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company at an effective feed in tariff of $71/MWh. The PPA will be backed by a sovereign guarantee from Egyptian Ministry of Finance.
The objectives of the Project are to increase Egypt’s generation capacity by exploiting its vast RE potential and help the country to meet its power demand and reduce the dependence on gas and fuel for electricity generation, moving to a more balanced and environmentally sustainable energy mix.
Egypt has among the best solar resources in the world. The Government of Egypt has demonstrated a strong commitment to the development of renewable energy, both at the policy and strategic level and at the detailed implementation level, through the development of a detailed contractual and regulatory framework. The GoE’s Sustainable Energy Strategy 2035 confirmed the country’s target of reaching 20% of electricity generation from renewable sources by 2022.
Jobs will be created during the construction of the Benban projects alongside long-term employment opportunitiesand in the operation and maintenance of the three solar plants, thus providing additional benefits to local communities.
In the planning and component selection for the projects, Enerray has planned appropriate arrangements to meet the particular climatic conditions of the desert area in which the PV systems will be installed: design for temperatures exceeding 50°C, components with mechanical protection against dust and working shifts in the cooler hours of the day.