Agreement envisions up to 4GW of renewable and natural gas projects

Sharm El-Sheikh, Egypt, March 15, 2015 – Masdar, ACWA Power and the Egyptian Electricity Holding Company (EEHC) have concluded a Memorandum of Understanding (MoU) to explore developing up to 4 Gigawatts of renewable and natural gas power generation projects in Egypt.

Dr. Ahmad Belhoul, CEO of Masdar; Paddy Padmanathan, ACWA Power president and CEO; and Gaber Dessouky, chairman of EEHC, signed the MoU at a ceremony held today at the Egyptian Economic Cooperation Conference in Sharm El-Sheikh. The non-binding framework is aimed at increasing Egypt’s power generation to meet its growing electricity demands and support economic growth.

“Egypt is committed to meeting our rising energy needs and encouraging economic growth by developing new power generation in our country. We appreciate the partnership of companies, such as Masdar, ACWA Power and Egyptian Electricity Holding Company, which will explore the development of new renewable energy and natural gas facilities to provide electricity for Egyptian homes and businesses,” said Dr. Mohamed Shaker El-Markabi, Egypt’s minister of electricity and energy.

Masdar, Abu Dhabi’s multifaceted renewable energy company, would lead development of renewable energy projects. According to the MoU, the partners will evaluate 2 GW of renewable energy projects, including 1.5 GW of solar and 500 Megawatts of wind. The first project that would be considered is a 200 MW solar photovoltaic plant.

Masdar’s Dr. Belhoul said: “Egypt has one of the fastest growing populations in the Middle East and requires additional electricity to power its economic expansion. As a regional and global leader in delivering large-scale renewable energy projects, Masdar is eager to move forward with our partners to explore sustainable, economic options to improve Egypt’s energy security. The significant contribution from renewable energy envisioned in this agreement further confirms the increasing cost-competitiveness of these solutions.”

The framework agreement also calls for development of 2.2 GW of combined-cycle natural gas generation led by ACWA Power.

ACWA’s Paddy Padmanathan said: “Egypt is a very important market for us. The Egyptian government efforts in keeping pace with the increasing demand of power and energy to meet the expectations of its developing economy, is a key driver in looking into efficient energy solutions. Through this MoU, the partnership will look into potential opportunities of generating power more efficiently, utilizing a broader mix of fuel resources and renewable energy sources, hence providing cutting edge technologies and a more cost competitive approach. Producing 4 Gigawatts of energy will not only sustain economic development but will also position Egypt as one of the globally leading countries in the field of renewable energy.”

Egypt has made installing additional power generation capacity a priority, rolling out one of the Middle East and North African region's most ambitious renewable energy programs as it seeks to meet surging domestic energy demand while curbing reliance on fossil fuel imports.

“We are pleased to partner with ACWA Power and Masdar to examine the development of new power plants in Egypt, including renewable energy and natural gas. Every day we work to ensure that Egyptians have the electricity they need, and at the same time we are looking at new projects to help provide the power for Egypt’s future,” said EEHC’s Gaber Dessouky.

At the end of 2013, Egypt had 31 GW of total installed generating capacity, dominated by natural gas and oil. It had 552MW of wind and 20MW of solar generating capacity. The renewable component, including hydro, is projected to increase to 20% by 2020.

About ACWA Power

ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with operations in 10 countries in the Middle East and North Africa, Southern Africa and South East Asia regions.   ACWA Power’s portfolio, with an investment value in excess of USD 25 billion, can generate 16.1 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.

ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).

ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Diversity, Rigor, Ingenuity, Fairness and Integrity in operating its business.