Masdar, ACWA Power Ink Deal For Renewable Energy Projects In Egypt

Abu Dhabi energy company Masdar and Saudi-based company ACWA Power have signed a memorandum of understanding with Egyptian Electricity Holding Company to develop renewable energy projects in Egypt.

The non-binding framework is aimed at increasing Egypt’s power generation to meet the country’s growing electricity demands.

As per the agreement, the three partners will evaluate renewable energy projects having a capacity of 2GW, state news agency WAM reported. They include 1.5GW solar projects and a 500MW wind farm.

The first project to be considered will be a 200MW solar photovoltaic plant.

“Egypt has one of the fastest growing populations in the Middle East and requires additional electricity to power its economic expansion,” said Ahmad Belhoul, CEO of Masdar.

“Masdar is eager to move forward with our partners to explore sustainable, economic options to improve Egypt’s energy security.”

The framework agreement is also expected to lead to a 2.2 GW development of combined-cycle natural gas generation by ACWA Power, a statement said.

“Egypt is a very important market for us,” said Paddy Padmanathan, ACWA Power president and CEO.

“The Egyptian government’s efforts in keeping pace with the increasing demand of power and energy, to meet the expectations of its developing economy, is a key driver in looking into efficient energy solutions.

“Through this MoU, the partnership will look into potential opportunities of generating power more efficiently, utilising a broader mix of fuel resources and renewable energy sources, hence providing cutting edge technologies and a more cost competitive approach.”

In an effort to meet surging economic demand and curtail fossil fuel consumption, Egypt has already deployed a number of renewable energy projects.

As of 2013, Egypt had 31GW of total installed generating capacity, most of them from natural gas and oil. The country also had 552MW of wind and 20MW of solar generating capacity.

Power generated through renewable energy in Egypt is expected to increase 20 per cent by 2020.