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Egypt - Alcazar II Solar PV Project - Summary ESMP - 06 2016
Egypt has one of the best solar resources in the world, with daily sunshine averaging 9-11 hours, low humidity, and global horizontal irradiation of around 2230-2330 kilowatt hour (“kWh”)/m2 per year. Despite strong solar and wind resources in the region, installed wind and solar capacity is limited to the 687MW under public ownership. In order to meet the increasing energy demand, diversify the national energy mix, and improve the environmental and climate footprint of the power sector, Egypt has developed an overarching regulatory framework for the development of renewable energy capacity with the aim of securing 20% of its energy generation from renewable sources by 2022. Within this framework, the GoE, in September 2014, launched a Feed-in-Tariff (FiT) Program for a total of 4,300MW including 300MW of roof top Solar photovoltaic (“PV”) systems. The Bank is considering the financing of the Alcazar II Solar project which entails 2.1. The Project entails the design, construction, operation, and maintenance of a turnkey solar PV project with a nominal capacity of 50 MW. The Project is Alcazar’s second Project under the Egypt FiT Program . It will be executed by Delta for Renewable Energy (“Delta”), an SPV incorporated in Egypt. 75% of Delta is currently being acquired by Alcazar from another developer, Delta Consortium, which was one of the Bank’s shortlisted developers under Round 1. The supporting documents prepared for Delta which is equivalent to Alcazar II.