Egypt in talks with Masdar on solar power plan

The Egyptian government is in talks with Abu Dhabi state-owned clean energy firm Masdar to help fund a solar power plant along the eastern Red Sea coast, an official has revealed.

The North African state is courting Masdar and three unnamed European companies in a bid to secure funding and technical expertise for the $1bn plant, the Egyptian minister of investment told Arabian Business.

“We have been in discussions with Masdar and three potential companies to provide know-how from Europe. Masdar would be providing some of the funding and technical collaboration,” said minister Mahmoud Mohieldin, on the sidelines of the third Comesa Investment Forum in Sharm El Sheikh.

The state plans to contribute a portion of the funding and will also tap local banks for capital, he said.

“We will be contributing as well to the project, through some of the local financial institutions, including some long-term finance houses. It will be a joint venture,” he said.

He did not specify the planned capacity of the plant.

Neighbouring Morocco has revealed plans for a giant $9bn solar energy project, spread across five power sites. Bidding to construct the first 500MW plant began in February.

“Hopefully the project will be very similar to the project already finalised in Morocco. In the solar atlas, that area close to the Red Sea… is one of the best spots in the world for that,” said Mohieldin.

In February, Masdar inked a deal with Egypt to build a 200MW wind farm near Suez, as part of Egypt’s plan to generate 20 percent of its energy needs from renewable sources by 2020.

It already has two wind farms operating in the eastern part of the country, in the towns of Zafarana and Hurghada.Abu Dhabi’s Masdar has pledged to invest $15bn in clean energy projects.

In 2008, the fund unveiled plans to ringfence $2bn for investment in solar technology.