At the World Future Energy Summit held in Abu Dhabi, Saudi Arabia's ACWA Power and China's Chint Group signed a significant contract involving renewable energy projects in Egypt. This collaboration not only marks a closer partnership between China and Saudi Arabia in the renewable energy sector but also highlights Egypt's substantial potential in this field.
Contract Details and Project Information
According to the contract, Chint Group will be responsible for the design, procurement, and construction of three solar photovoltaic power plants in southern Egypt. The total installed capacity of these plants will be 165.5 MW, with a total investment of $190 million. These projects will commence in the first quarter of 2018 and are expected to be operational by the fourth quarter of the same year. Once completed, these facilities will provide electricity to approximately 80,000 households and are expected to reduce CO2 emissions by 156,000 tons annually, contributing positively to environmental protection.
ACWA Power's Investment in Egypt
This is ACWA Power's first investment in Egypt. Paddy Padmanathan, President and CEO of ACWA Power, stated that this deal will not only help the company achieve financial balance in Egypt but also assist the Egyptian government in reaching its goal of 20% renewable energy usage by 2022.
Chint Group's Outlook on the Egyptian Market
Lu Chuan, CEO of Chint Solar, is optimistic about the prospects of the Egyptian market, believing that Egypt is a growing market undergoing significant changes in the renewable energy sector. This cooperation is not only a recognition of Egypt's renewable energy potential but also signifies deeper collaboration between China and Saudi Arabia in the green energy field.
Chint Group's Expansion in the Middle East and North Africa
Chint Group has been deeply involved in the Middle East and North Africa markets for many years. In November 2022, Chint signed an agreement with Saudi Arabia's Ajlan Brothers Holding Group to establish a joint venture in Saudi Arabia, focusing on the production of low, medium, and high voltage electrical equipment and power solutions. This move marks a significant step in Chint's localization strategy in the Saudi market.
On March 18, 2024, representatives from Masdar, Dubai Electricity and Water Authority, and India's largest EPC company L&T visited Chint's manufacturing base in Haining to discuss the cooperation details for Dubai's 1,800 MW solar power project. This project is one of the largest solar projects in the UAE and a key project in the global solar power sector.
Strengthening China-Egypt Cooperation in Renewable Energy
China's cooperation with Egypt in the renewable energy sector is continuously strengthening. In September of the previous year, the China-based Asian Infrastructure Investment Bank announced a debt financing of up to $210 million for Egypt to further explore the country's renewable energy potential. These initiatives demonstrate China's long-term commitment and investment in Egypt's renewable energy market.