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 (Gila) 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 (World Bank Group) and other lenders under the IFC’s Nubian Suns renewable energy financing programme including the Asian Infrastructures Investment Bank (AIIB), CDC, European Arab Bank (EAB), 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 (PPA) with the Egyptian Electricity Transmission Company (EETC) 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 opportunities and 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.
“The Egyptian Solar Project won the most coveted award in the industry: Project Finance International’s Global Multilateral Deal of the Year. Enerray is proud for contributing to achieve this award by acting as developer, sponsor, EPC and O&M Contractor for 116 MWp in Benban. We thank IFC, the other lenders and the project sponsors for believing and supporting this Project. In this way sustainable growth will be guaranteed for the whole Region, an area in which we see great potential and we are investing significantly” says Andrea Venezia, Enerray’s CEO.
“Enerray has been a great client to work with in this historic programme. IFC is proud to have been able to create its Nubian Suns Renewable Energy Financing Programme to both support its clients and help get low cost, clean renewable energy on such a large scale to the people of Egypt” says Christopher Cantelmi, Principal at IFC.
