Norwegian company Scatec Solar has signed a 25-year power purchase deal with the Egyptian government for the supply of energy from six solar plants with a combined generation capacity of 400MW. The plants are expected to cost around $450m to build.
Scatec said it will contribute equity of between $50m and $70m with partners including local developers and KLP Norfund Investments also providing contributions. Additional equity partners could be added before financial close, it said.
The European Bank for Reconstruction and Development is leading a consortium of banks that is expected to offer debt funding of up to $350m.
'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 CEO Raymond Carlsen said.
Image: a signing ceremony for the Egyptian supply deal (Scatec)