Japan to finance construction of solar power plant in Egypt
The Egyptian government is now set to construct one of the largest solar power plants in Africa after receiving $89m loan from Japan. The 20MW solar power plant with a 30-MW storage capacity will be constructed close to the Egyptian city of Hurghada.
The project will comprise a 20-MW solar PV plant and a 30-MW storage facility, which will utilise several different types of battery technology, including lithium-ion and sodium-sulphur batteries.
The Egyptian government will hold a public tender for the project exclusively for Japanese companies that have demonstrable battery technologies ready to go.
Sumitomo Electric Industries and NGK insulators are companies expected to vie for contracts, thus encouraging for more Japanese investment in the growing MENA region.
Construction costs are expected to reach $92 million. However the two governments have established a low interest payback rate for the loan. Japan’s government has been eager to encourage its domestic companies to explore business opportunities in new and emerging markets.