ACWA Power, a prominent Saudi-listed enterprise renowned as the world’s largest privately-owned water desalination firm and a pioneer in green hydrogen, as well as a frontrunner in driving energy transition, has officially declared the successful financial closure for the 200MW Kom Ombo project. This initiative encompasses a utility-scale solar power plant situated in Egypt.
Encompassing a total investment outlay of $182 million, the Kom Ombo facility is poised for commercial operations by January 2024.
Key financial backers for this project comprise esteemed institutions such as the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development, the African Development Bank (AfDB), AfDB’s Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund (GCF), Arab Petroleum Investments Corporation (APICORP), and the Arab Bank.
Back in April 2023, an announced financial arrangement of $123 million was established for the project. This comprehensive package consisted of loans, including $35.6 million from the EBRD, $14.4 million from the OPEC Fund, $14.4 million from the AfDB, $34.1 million from the GCF, $14.4 million from Arab Bank, and $10 million from SEFA, all facilitated through the COVID-19 IPP relief initiative. Additionally, the project already secured equity bridge loans, amounting to $14 million from the EBRD and $45 million from APICORP.
Marco Arcelli, CEO of ACWA Power said,”We are thrilled to announce the successful financial close of the monumental Kom Ombo solar project in Egypt. Our commitment to renewable energy solutions has brought us to this momentous juncture.”
“We are poised to turn our vision into reality. I am thankful for the great support from all the financing institutions involved. Together, we demonstrate our dedication to driving positive environmental impact and reinforce our joint contribution to Egypt’s energy independence goals,” he added.
Upon achieving full operational status, the upcoming utility-scale plant will provide power to approximately 130,000 households. This endeavor aligns with the Egyptian government’s objective of sourcing 42 percent of the nation’s electricity from renewable energy outlets by 2035. Additionally, the project will establish one of the most competitive generation tariffs in Africa.