Bahrain-based energy investment firm Terra Sola Ventures has inked a deal with Egyptian Electricity Holding Company to build a new photovoltaic(PV) plant in Egypt, the company said in a statement.
Valued at $3.5 billion, the project will provide 2,000 megawatts (MW) of solar energy in the country, the statement added.
As per the deal, Terra Sola will help fund the implementation of a European-technology driven solar power project that is specifically developed for Egypt.
The project also includes the establishment of two advanced European-technology manufacturing units for the production of PV modules and inverters, a human capital development programme to educate more than 10,000 students and a Small and Medium Enterprise (SME) Entrepreneurship Fund to support the emergence of over 1,250 SMEs.
Launched in 2010, the company is a consortium consisting of Swiss-based Terra Nex and a number of venture capital firms and technology partners from Europe.
The firm’s new project in Egypt has also attracted strong interest from local and international investors, according to Terra Sola’s Chairman David Heimhofer.
As a result the company, which increased its capital by 35 per cent to $18.5 million, is planning a further increase of 50 per cent in 2015, Heimhofer said.
A booming population and a surging economy are luring many international power developers and energy investors to Egypt’s clean energy market.
Last week, Abu Dhabi-based firm Masdar announced plans to establish renewable energy projects with a capacity of 2GW in Egypt.
The projects being evaluated, including 1.5GW of solar plants and a 500MW wind farm, will be carried out in partnership with Saudi-based firm ACWA Power and Egyptian Electricity Holding Company.
Canada-based energy firm SkyPower has also reportedly announced plans to install 3,000MW of renewable energy capacity in Egypt over the next five years.
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