A consortium led by ACWA Power has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a gas-fired combined cycle plant that will generate 2,300 MW.
The project, which is located in Luxor, will have an investment value of about $2.3 billion U.S. dollars, according to ACWA. The project is expected to start the first phase operation in summer 2022 and the full commercial operation in summer 2023.
The PPA is under a Build-Own-Operate framework with a term of 25 years. The project will be vital in meeting Egypt’s increasing demand for electricity over the next years, particularly in the upper Egypt region, according to the release.
“Signing the PPA today represents a significant step in the development of the project, more importantly it demonstrates the commitment of the Egyptian government to encourage the participation of the private investors in infrastructure projects,” Paddy Padmanathan, President & CEO of ACWA Power, said in a statement. “We look forward to completing the financing arrangements and commence construction of the power plant to enable us to contribute to the development of the Egyptian power sector by delivering reliable, safe and cost-effective
ACWA Power is partnering with Egyptian group Hassan Allam on the project. It is one of several deals ACWA is working on within the Egyptian market, including several solar photovoltaic projects totaling more than 700 MW in capacity.