The Egyptian state-owned electricity transmission company accepted ACWA Power’s request to postpone the solar plant project in Kom Ombo (southern Egypt) due to the high cost of transport and the prices of solar cells.
Informed sources have reported to the media Egyptians that Saudi company officials held a meeting with the head of the Egyptian electricity transmission company and informed him of the high prices of solar cells and charging equipment at the moment, which could cause significant financial burden for the company, who bargained at a value that will not change to sell the kilowatt hours produced by the project.
The sources added that the Egyptian electricity transmission company has decided to agree to postpone the project for a period of 9 months until freight and cell prices stabilize.
A state of equilibrium is expected in the solar energy market in light of the recovery from the repercussions of the Corona virus epidemic in the next period.
Sterling & Wilson, the general contractor on the project, left the project site until officially informed by Saudi company, ACWA Power, of the new date, according to sources Economy Plus spoke to.
ACWA Power had already managed to complete the financial close of the project, and the project is co-funded by international entities, with a total implementation cost of $ 200 million.
Under the agreement with the Egyptian Electricity Transmission Company, it will sell the product in kilowatt hours of the project at about 2.48 cents over the life of the project, which is the lowest price contracted by the Egyptian Electricity Transmission Company since the announcement of the renewable energy resources development plan, which began in 2014.
The contract for the construction and development of solar photovoltaic plants is part of the government’s plan to produce 20% of the total energy produced on the electricity grid from renewable sources by 2022.
The sources stated that the agreement for the construction of the station provides for the use of the “double-faced” technology through which the solar cells are produced, which allow to absorb light on both sides, to obtain greater efficiency and improve the cell performance in winter, with the commitment to purchase the same amount of energy from the technology presented in the offer, essentially using single-face.
The plant helps provide the electricity needed to meet the needs of 130,000 housing units and reduce carbon emissions by approximately 280,000 tons per year.
It is worth noting that ACWA Power has completed the operation of 3 solar power plants under the solar energy tariff program in Benban, Aswan Governorate, and is competing for a series of tenders to establish solar power plants. .
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