By: Mridul Chadha
Leading solar power project developers are flocking to Egypt’s solar power market, which is set for a massive expansion.
Terra Sola has approached the Egyptian government with an intention to invest $3.5 billion to develop solar power projects. Terra Sola CEO David Heimhofer met with the Egyptian Prime Minister and shared his company’s plans.
The meeting took place only days after officials from SkyPower met the electricity minister and proposed to set up 3 GW of solar capacity in the country. With a proposed investment of $3.5 billion Terra Sola will, too, be able to install about 3 to 3.5 GW of solar photovoltaic capacity. According to reports, the company is planning to build an 800 MW solar PV park.
Terra Sola’s capacity addition plan is expected to generate an annual revenue of $760 million and provide employment to 20,000 people.
Project developers from around the world are interested in expanding in Egypt as it recently announced an ambitious renewable energy target to generate 20% of the electricity from renewable energy sources by 2020, and issued attractive feed-in tariff regulations. A recent auction of solar and wind energy projects organised by the Egyptian government received overwhelming response with prospective project developers willing to set up twice as much capacity offered by the government.
Fairly attractive feed-in tariffs have been offered by the government to solar power project developers. Solar PV projects between 500 kW and 20 MW in size will get 13.6¢/kWh, and projects between 20 MW and 50 MW will get 14.34¢/kW, with contracts for a 25-year term.
Terra Sola has concentrated its solar power investment in the Middle East & North Africa (MENA) region, and currently has over 1.7 GW of capacity in pipeline representing a value of $2.76 billion.