On November 30, Japan International Cooperation Agency (JICA) signed a project finance loan agreement with Abydos Solar Power Company SAE of the Arab Republic of Egypt for the Kom Ombo solar power project. The project will be co-financed with the International Finance Corporation (IFC).
Egypt has been aggressively increasing its power generation capacity, mainly thermal power generation, to meet the growing demand for electricity against the backdrop of economic growth. Currently, thermal power generation accounts for 90% of Egypt’s power supply, and hydropower and renewable energy sources each account for only 5%, leaving the country dependent on fossil fuels. Under these circumstances, the Egyptian government has set a policy to significantly increase the share of renewable energy in the future in order to reduce the environmental burden, take advantage of Egypt’s abundant solar radiation, and expand the country’s energy sustainability, making the diversification of power sources, especially renewable energy, an urgent issue for Egypt.
This project aims to increase electricity supply from renewable energy sources by constructing and operating a 500 MW solar power plant in Kom Ombo, Aswan Governorate, Southern Egypt, thereby contributing to the fight against climate change by reducing CO2 emissions in Egypt, and contributing to SDG Goal 7 (Energy for All and Clean), Goal 13 (Tangible Action on Climate Change), and Goal 17 (Let’s Achieve the Goal through Partnership). and clean energy for all), Goal 13 (take concrete measures against climate change), and Goal 17 (achieve the goals through partnerships).
Egypt hosted the 27th Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change in November 2022. At the conference, against the backdrop of serious damage caused by extreme weather events in various parts of the world, each country called for the need for measures to reduce greenhouse gas emissions, and some developed countries expressed their support. This project is JICA’s first contribution to the reduction of greenhouse gas emissions as a result of the outcome of the conference in Egypt, the host country, and demonstrates JICA’s strong commitment to climate change measures in Egypt. The project is also a major component of the Energy Program of the Nexus of Water, Food and Energy (NWFE), an initiative of the Egyptian government at COP27 to promote climate change action in the country.
JICA has been supporting the Egyptian power sector in various aspects through yen loans and technical cooperation projects, including the development and management of power supply, transmission, and distribution networks covering the Upper Egypt region, and support for improving the rehabilitation of the power sector, strengthening financial sustainability, and promoting governance reform. Building on this support, this project will support the Egyptian power sector by boosting renewable energy projects financed by the private sector.
© Source JICA
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