Shahid Law Firm’s energy and renewables team assisted the leading Norwegian independent solar energy provider Scatec Solar with respect to the execution of the Power Purchase Agreement (PPA) for six solar projects with the Egyptian Electricity Transmission Company (EETC) mid-April 2017.
The 25-year PPA concerns the delivery of 400 MW of electricity from six solar plants developed by Scatec Solar and located in Benban, Aswan, South of Egypt.
As part of Round 2 of the 2GW Egyptian Feed in Tariff (FiT) program, the energy produced by the six projects is planned to replace around 350,000 tons of CO2 emissions per year, supporting the efforts exerted by the government of Egypt to reduce emissions in compliance with the Paris Climate Agreement.
The total investment in the six plants, which will be built, owned and operated by Scatec Solar, is estimated at USD 450 million. Scatec Solar’s share of equity investments in the projects will be in the range of USD 50-70 million, and the remaining financing will be procured by other equity partners, and a consortium of lenders led by the European Bank for Reconstruction and Development (EBRD) supporting the projects with a total debt of up to USD 350 million. The plants are expected to generate revenues of about USD 60 million per year over the 25-year agreement period.
Shahid Law Firm has been advising Scatec Solar on all its activities in Egypt since 2015.
For more information about Shahid Law Firm’s capabilities in energy and power projects, please visit the Energy and Renewables practice page.
*Original announcement published on Scatec Solar’s website.