Egyptian Electricity Holding Company (EEHC) has selected Terra Sola Consortium to boost solar power sector in the country with up to 2GW of new capacity.
A memorandum of understanding (MOU) has been signed with Terra Sola Consortium, which comprises Terra Sola Ventures (Terra Sola) and Swiss wealth management firm Terra Nex Financial Engineering (Terra Nex).
Under the terms of the contract, the consortium is expected to invest $3.5bn for an integrated project in Egypt, which has been planned to be developed in multiple phases on a build-own-operate-transfer (BOOT) basis.
The project will include construction of several solar photovoltaic (PV) facilities, which will have a combined generation capacity of 2,000MW.
Terra Sola Consortium will also be responsible for developing a 200MW solar PV module manufacturing factory and an inverter factory, which will deliver the equipment for the company’s planned power facilities in the country.
The consortium will also take up initiatives to educate Egyptian nationals about the solar sector through a human capital fevelopment (HCD) programme and establish a small and medium enterprise (SME) entrepreneurship fund to support the emergence of more than 1,250 SMEs.
The $3.5bn project has been planned to meet the future power demands in the country through integration of European expertise, Swiss financial strength, and German solar technical skills.
Terra Solar chairman David Heimhofer said: "This MOU is a solid step forward in the government of Egypt’s efforts to develop the country’s solar energy capabilities and meet its future demand for power."