The Egyptian government, represented by the Egyptian Ministry of Electricity and Energy, approved the offer submitted by Abu Dhabi Future Energy Company “Masdar” to establish stations to generate electricity from solar energy with investments exceeding $900 million, according to a government official who spoke with Al-Sharq on condition of anonymity.
The government official who spoke to Al-Sharq revealed that the offer includes the inauguration of stations with a total production capacity of about 1,000 megawatts, and that these projects will be established in Upper Egypt, including Aswan Governorate.
He added that the projects will be implemented under the “BOO” system – build, operate and own – where “Masdar” will implement, finance and own the project, provided that the Egyptian Electricity Transmission Company, affiliated with the Ministry of Electricity, will commit to purchasing the entire production from the projects over the life of the station, which reaches about 25 years.
He pointed out that the final contracts for the projects and the energy purchase price are being reviewed in preparation for signing the relevant agreements by next October between the New and Renewable Energy Authority – which will allocate the land for the project with a usufruct system in exchange for 2% of the energy produced from the project – and the Egyptian Electricity Transmission Company, which It will buy the produced energy, and the Emirati company on the other hand.
The government official explained that, according to the ongoing negotiations, “Masdar” will complete these projects and connect them to the national electricity grid before the end of 2025, and will implement them with a photovoltaic cell system and include generating electrical energy using solar panels. It is expected that the Emirati “Masdar” will choose an Egyptian partner in the projects to carry out the civil works. During the project implementation period.
It is noteworthy that the Egyptian government signed a few days ago another contract with the Emirati company Masdar to implement a solar energy project with a capacity of 200 megawatts in southern Egypt, as part of Egypt’s plan to reach its production of new and renewable energy to 42% of its total electrical capacity by 2035.
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