Three major loans worth $55 million have been approved by The African Development Bank (AFDB) in an attempt to provide financial aid for the development of solar energy sector which will help overall African businesses and economy. The project will help the Feed-in-Tariff (FiT), Egypt by assisting three solar photovoltaic projects.
The loan will assist three independent companies over the next 18 years. The companies include Shapoorji Pallonji Energy Egypt (SPEE), Alcazar Energy Solar 2 (Alcazar 1) and Delta for Renewable Energy (Delta).
According to Madou Hott (Vice President for Power, Energy, Climate Change and Green Growth Complex (PEVP)the projects will help the energy sector in Egypt via diversification of energy mix, fuel saving and reduction of carbon emission to 4.8 million metric tons during the 25-year term. The project will enable the system to provide solar energy to approximately 100,000 houses. All three projects will be concentrated on the desert land in Benban which is 40km North of Aswan. A single grid will be utilized complying with the Cost Sharing Agreement signed by the Egyptian Electricity Transmission Company (EETC).
A loan of $ 18 million each is allocated for Delta and Alcazar 1 and $ 19 million is allocated for SPEE. The Global Environment Fund (GEF) is also contributing $ 7 million to the project.
The GEF aims at promoting the technology used for renewable energy and is looking to contribute to the power supply in Africa. The funding was approved by GEF confirming to AFDB Public Private Partnership Program.
GEF6 works for the clean energy resources promotion to use innovative technology in an attempt to clean the climate. The project aims at reducing 61,000 tons of Carbon Dioxide every year.
Egypt’s weather features 9 to 11 hours of daily sunshine makes the country one of the best solar energy potential in the world. There is a regulatory framework working in Egypt which works for the development of clean renewable power generation with an anticipation of 20 % energy generation from clean renewable resources by the year 2022. The capacity of these three projects has been estimated to be 150 Mega Watt and the plants will be operational by the end of next year.