UAE-based AMEA Power has signed an agreement with the Egyptian government to build a solar park and a wind farm with a total capacity of over 1GW for $1.1bn investment.
Under this agreement, AMEA will construct a 560MW solar plant in southern Egypt and a 505MW wind farm on the Red Sea coast.
This project is backed by debt and equity financing from the International Finance Corporation (IFC) and several development and commercial banks.
Power produced by the solar park and the wind farm will be priced at two US cents per kilowatt hour and three US cents per kilowatt hour, respectively.
These are claimed to be the lowest rates in Africa and also considered among the lowest globally.
Construction of the two projects is slated to commence in December 2022.
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The completion of the Abydos solar plant is expected following 18 months of the commencement of construction. The Amunet wind farm will be completed after 30 months.
The deal boosts renewable power development in Egypt, which hosted the COP27 United Nations climate summit recently.
AMEA Power chairman Hussain Al Nowais said: “These landmark projects reflect the long-term commitment, ambition and growth of AMEA Power.
“The company is leading the development of renewable energy across Africa, which through its global and regional partnerships, will deliver clean energy to millions of people around the continent.
“We are proud to reach this significant milestone and to be supporting Egypt in its energy transition journey and drive to accelerate sustainable development. This achievement would not have been possible without the hard work of AMEA power’s world class team, the support of our project partners, lenders, advisors, and the cooperation of the Egyptian government.”
Image: AMEA will construct a 560MW solar plant in southern Egypt and a 505MW wind farm on the Red Sea Coast. Credit: Maria Maltseva from Pixabay.