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The country is a huge desert with an extremely small usable area, concentrated in the Nile Valley.
The climate here is sunny and dry all year round, and the government is taking advantage of this opportunity. In 2019 alone, Egypt added 1.7 GW of installed PV capacity.
The construction of solar power plants in Egypt under the EPC contract has gained particular importance in recent years, especially with the start of development of the giant Benban Solar Park near Aswan.
To develop the photovoltaic sector, Egypt entered into an agreement with the Chinese GCL Group to open its own production of solar panels.
On October 30, 2017, the government signed a $ 653 million financing agreement with the International Finance Corporation (IFC), a subsidiary of the World Bank, for the construction of 13 solar power plants with a total capacity of 590 MW.
Egypt previously received funding for 6 photovoltaic plants of 50 MW each, for which the EBRD has allocated $ 355 million.
The Benban solar complex with an installed capacity of 1.8 GW will contribute to the Egyptian government's target of 20% renewable energy by 2020 and 42% by 2035. As of 2017, 90% of Egypt's electricity came from fossil fuels, with only 1% solar energy.
Development of solar energy sector by countries (2019):
| Country | Installed capacity, MW | Capacity (W) per capita |
| Egypt | 1647 | 17 |
| Israel | 1190 | 134 |
| Jordan | 998 | 100 |
| Turkey | 5995 | 73 |
| UAE | 1783 | 185 |
| Algeria | 423 | 10 |
| Morocco | 206 | 6 |
Our team offers financing and construction of energy facilities.
Our company is present in many countries around the world.
The largest solar park in Egypt
Alcazar Energy is developing a Benban Solar Park, with an installed capacity of up to 2 GW when completed, in line with a fossil fuel phase-out policy.This complex should consist of 32 projects.
Each phase of the project marks a historic milestone for the Egyptian solar industry.
In 2019, the construction of several phases of the solar park (Aten, Delta, Horus, Aess1, Aeso and Abeso) with a total capacity of 384.6 MW. These power plants are capable of generating 962 GWh of energy annually, reducing CO2 emissions by hundreds of thousands of tons.
High-efficiency polycrystalline photovoltaic modules are equipped with trackers that track the movement of the sun throughout the day to increase electricity production.
The power plants represent an innovative approach to large-scale construction of energy facilities in the remote desert regions of Africa.
If you are interested in financing and construction of photovoltaic plants in Egypt under an EPC contract or are looking for a reliable project management partner, contact our specialists at any time.
Construction of solar power plants in Egypt under the EPC contract: general contracting
Large investment projects in the energy sector of Egypt are often implemented through EPC and EPCM contracts.Under this model of contractual relations, the Egyptian client company signs an agreement with the general contractor, shifting a significant share of the responsibility to the selected engineering company. In this case, the basis for the construction of a solar power plant is an EPC (M) contract. Traditionally, this includes engineering design, procurement and supply of materials, inverters and solar panels, construction and installation work.
Continuing globalization and advancing digital technologies, coupled with increasing competition, require Egyptian energy companies to use advanced and cost-effective solutions.
At the same time, new requirements are being imposed on the implementation of large-scale investment projects in the field of renewable energy sources, especially in engineering and project management. EPC contracting opens the door for large-scale cooperation of local customers with major international engineering companies from Spain, Germany, Japan and other countries. It is a powerful tool for attracting modern technology and improving the efficiency of local companies.
The most interesting for Egyptian customers is the experience of Western engineering companies in the construction of large-scale solar power plants.
Large EPC contractors can concentrate engineering design, supply of materials and equipment, construction and project management in one hands.
This model of contractual relations is the most demanded by customers and investors.
It should be noted that the basis for the success of a large-scale project is well-functioning business processes between all its participants: investors, customers, technology companies, design bureaus, subcontractors, suppliers. The effective interaction of the project participants determines not only its timely completion, but also its financial performance during the period of further operation.
EPC (Engineering, procurement and construction) is an abbreviation that is increasingly used in the energy sector in the Middle East.
EPC contracts are most in demand in large-scale projects that require significant technical, material, financial and human resources, including by attracting subcontractors.
The EPC contract forms a single center of responsibility for the engineering design of a solar power plant, the purchase of PV panels and other equipment, the supply of building materials, construction and installation.
The functions of the general general contractor for the construction of a solar power plant will be as follows:
• Project cost calculation and reporting.
• Search for subcontractors for certain types of work, for example, the construction of substation.
• Purchase of the necessary materials and electrical equipment.
• Control of construction and installation work at the construction site.
• Quality control of the work performed.
• Commissioning.
The EPC contract model assumes the following:
• There is a certain price that the customer can count on (with the exception of force majeure or changes to the project at the initiative of the customer).
• The client performs the minimum amount of project management work, leaving work with small subcontractors to the general contractor.
• All stages of the construction of a solar power plant (from drawings to putting the facility into operation) are carried out by one company, which is responsible for quality, budget and schedule.
EPC allows Egyptian investors and customers to predict the time and financial costs of an investment project.
Choosing general solar contractor in Egypt
When looking for a general contractor in Egypt, it should be borne in mind that each country has features that affect the implementation of projects.These differences include:
• Interpretation of terminology in the principles of building design and engineering activities.
• Differences in the regulatory framework, in the existing legal practice.
• Differences in market conditions.
Therefore, when negotiating an EPC contract with a foreign company, it is necessary to make sure that a complete understanding of the terminology, essential conditions, acceptable options for the execution of the agreement, liability of the parties and other aspects has been achieved.
The main interest and purpose of the parties in the application of EPC contracts is to obtain bank financing.
To ensure funding for the project, the partners must reach conditions that would be approved by the financial institution. Among the most important aspects are the distribution of risks, collateral, deadline for completion of works, forfeit for non-fulfillment of obligations, etc.
Choosing the right general solar contractor is the foundation for a successful energy project. Success is built on the stage of preparing a tender proposal.
Experts recommend observing the following:
• Clearly state the terms of the contract and the responsibility of the contractor.
• Inviting as many participants as possible to participate in the tender.
• Detailed analysis of the experience, resources and capabilities of companies.
• Additional negotiations with each participant.
• Unbiased attitude towards the tenderers.
• Adequate contract terms.
In order to select a reliable company for the construction of a solar power plant, customers must be extremely clear about the requirements, scope of work and the boundaries of the responsibility.
Also, the contract price must correspond to real market conditions, otherwise the majority of experienced engineering companies will refuse to apply for a tender.
Our services: financing, construction and project management in Egypt
Thanks to advanced technologies, years of experience and a strong financial base, we are ready to offer your business the best solutions for every situation.Engineering services include:
• Selection of a suitable site.
• Study of the conditions for the development of the project.
• Obtaining all necessary licenses and permits.
• Preparation of technical documentation.
• Procurement of electrical equipment and materials.
• Selection of competent subcontractors.
• Construction of a solar power plant from A to Z.
• Control of quality, budget and timing at every stage.
• Carrying out tests and putting into operation.
• Experimental operation and tuning.
• Training of the customer's personnel.
• Maintenance and repair.
We accompany Egyptian customers at every stage of a solar project, from feasibility study to commissioning.
By entrusting the construction of a photovoltaic station to LBFL with partners, you can be sure of 100% success of your business.
Contact us at any time.
