Is Hurghada finally getting its 20 MW solar power plant? A Japanese consortium was selected to set up a EUR 90 mn, 20 MW solar power plant in Hurghada, Al Mal reports, citing Electricity Ministry sources. The consortium may decide on a local partner to take on the design and construct of the project as well as operate and maintain it for two years.

The players: The consortium consists of two companies — Mitsubishi and another undisclosed firm — and it was the only participant in the tender, the sources said.

Years and years in the making: The project first came to light in 2016 before being put on hold for two years, until JICA agreed to provide the New and Renewable Energy Authority (NREA) with a USD 106 mn loan for the project. At the time, the power plant was set to kick off operations in mid-2019.

When can we expect the final agreement? The Madbouly government and the Japanese side are currently in negotiations regarding the financials and are expected to ink the final contract in 4Q 2024 for the plant to be up and running in 2026. NREA has obtained the necessary licenses for the project and an electrical connection was set up to link the station with electricity transformers.

A first for us: The Hurghada solar station will be Egypt’s first to be equipped with a battery to store energy.

Another step towards our ambitious renewables target: The project is the latest in a long list of renewable projects in the pipeline as the state works towards its goal to add 28 GW of renewable energy to the country’s energy mix over the next five to seven years.

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