Norwegian firm Scatec Solar (SSO) and partners have reached financial close on six solar PV power plants in Egypt.
The projects, built as part of the 1.8GW Benban Solar Park, will have a combined capacity of 400MW. Together, the projects will cost $450m and will generate 870GWh of electricity per year. The power generated by the projects is expected to lower carbon footprint by about 350,000 tonnes annually.
The projects will receive $335m in funding from the European Bank for Reconstruction and Development (EBRD), the UN Green Climate Fund (GCF), Dutch development bank FMO, the Islamic Development Bank and the Islamic Corporation for the Development of the Private Sector.
GCF offered $48m for the projects, which is its highest to a single recipient till date and the first under its co-operation agreement with the EBRD.
GCF private sector facility director Ayaan Adam said: "This is a big step forward. It shows the potential for public and private climate finance to drive the low emission energy transition in support of Egypt's climate goals."
Scatec Solar will serve as EPC provider, and will also deliver operation, maintenance and asset management services for the projects. Construction work is slated to begin in early 2018.
Scatec Solar CEO Raymond Carlsen said: "With this programme, the government of Egypt is making important steps towards accessing clean and low-cost electricity to drive development and economic prosperity. Scatec Solar and partners are making significant investments and a long-term commitment to Egypt.”