Global energy firm ACWA Power has secured $123 million in funding for the development of the 200 MW Kom Ombo solar power facility in Egypt.
The funding will be provided in the form of loans by the European Bank for Reconstruction and Development (EBRD); the Organization of Petroleum Exporting Countries Fund for International Development (the OPEC Fund); the African Development Bank (AfDB); the AfDB’s Sustainable Energy Fund for Africa (SEFA); Green Climate Fund (GCF); Arab Petroleum Investments Corporation (APICORP); and Arab Bank.
The EBRD will provide $36 million in loans for the project while $14.6 million will come from the OPEC Fund; $14.4 million from the AfDB; $34.5 million from the GCF; $14.8 million from Arab Bank; and $10 million from the SEFA. The new financial package will be combined with an existing $14 million loan from the EBRD and a $45 million loan from the Arab Petroleum Investments Corporation.
As a large-scale utility-scale solar power facility, Kom Ombo will contribute towards helping Egypt meet its target of generating 42% of total electricity from renewables by 2035 while ensuring energy affordability for consumers through low tariffs. With the financing secured, the project is on track to become operational by January 2024. The facility is expected to power 130,000 households.
Nandita Parshad, Managing Director – Sustainable Finance Group, EBRD, said the project is “one of the first to be delivered under the Energy Pillar of the Nexus Water-Food-Energy initiative, whereby the Egyptian authorities are committed to developing 10 GW of new renewable energy projects and decommissioning 5 GW of thermal capacity.”
According to Marco Arcelli, CEO of ACWA Power, the milestone demonstrates increased private sector interest and participation in driving Egypt’s energy transition following the country implementing energy sector reforms with the aid of the AfDB and launching a successful renewable energy tender leveraging a $3.6 million technical assistance program supported by the EBRD and GCF.
He added that, “This accomplishment highlights the shared vision and purpose of various global financing institutions in achieving the Republic’s targets, which would not be possible without the trust and support of the government, the Egyptian people and communities.”