The Egyptian Ministry of Electricity and Renewable Energy has approved a proposal from Abu Dhabi Future Energy Company, known as Masdar, for a significant solar power investment worth over $900 million. This development will see the construction of solar power plants with a total capacity of approximately 1,000 megawatts in Upper Egypt, including the Aswan region.
According to an official source from Asharq Business, Masdar will handle both the financing and execution of the project using a build, own, operate (BOO) model. Under this arrangement, the Egyptian Electricity Transmission Company (EETC) has agreed to purchase all the energy generated from these plants for a period of around 25 years. The finalization of contracts and energy purchase price agreements is currently underway, with the expectation that these will be signed between the New and Renewable Energy Authority (NREA) and the EETC by October.
The project will proceed on land allocated by NREA based on the usufruct system, which grants Masdar rights to use the land in exchange for 2% of the energy produced. The source also mentioned that Masdar aims to complete the construction and connect the plants to Egypt’s national grid by the end of 2025, utilizing advanced photovoltaic cells and solar panels. It is anticipated that Masdar will partner with a local Egyptian company to manage the project’s civil works, further integrating local expertise into this green energy initiative.
This move reflects Egypt’s ongoing efforts to expand its renewable energy capabilities and reduce reliance on traditional energy sources, aligning with global trends towards sustainable energy solutions.
