DFIs to support approved 50MWp Zaafarana solar power plant

German company Belectric has received approval from the Egyptian authorities to build its 50MWp solar power plant in Zaafarana, a town located on the Red Sea. The project will require an investment of €38 million ($45.1 million).

German development bank KfW has agreed to provide financing in the form of a soft loan, while Norfund, Africa50, the African Development Bank, and the European Bank for Reconstruction and Development will also support the project.

Belectric will sell the electricity produced by the plant to the Egyptian Electricity Transmission Company’s under a 25-year power purchase agreement. The plant will be commissioned in 2022. The Zaafarana solar photovoltaic project was initiated by the New and Renewable Energy Authority. The government agency is developing the project in partnership with Scatec, a Norwegian independent power producer.