20 July 2015

A Memorandum of Understanding was signed in Cairo between NREA, representing the Egyptian Ministry of Electricity and Renewable Energy and Building Energy, an Italian independent power producer from renewable sources, for the development of two 50 MW photovoltaic plants in Benban, Upper Egypt. The agreement was made official in the presence of Dr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy Minister, Dr. Mohamed El Sobky, Executive Chairman of the New & Renewable Energy Authority (NREA) and Cornelius Matthes, Building Energy’s Managing Director of the Middle East and North Africa.

The two solar PV plants, worth 200 million US Dollars, will each generate around 143 GWh per year, re-ducing CO2 emissions by over 100,000 tons. The plants will be connected to the 220 kV high voltage line linking Asswan to Cairo, providing energy to a total of 50,000 families, through a 25 year Power Purchase Agreement (PPA). More than 1,000 new jobs will be created during construction of the plants, while other 70-80 long-term jobs during operation. Construction works will begin in summer 2016 and will last for one year.

“We are delighted to see substantial interest by reputable international developers in partnership with local companies investing in the Egyptian market for renewable energy under the lately announced legislations and FIT Program - said Dr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy – Apart from helping to boost electricity generation, and economic development many new jobs will be cre-ated.”



“With the allocation of public land under a fair and tightly managed scheme, the process of deploying 2 GW of solar energy under the FIT program, first regulatory period 2015-17, exceeded expectations so far and has reached an important project development milestone – said Dr. Mohamed El Sobky, Executive Chairman NREA - NREA foresees a considerable number of developers to reach financial close early 2016 and start construction thereafter.”

“We’re delighted to have signed this MoU; the Benban project marks an important result for Building Energy because it is our first one in Egypt representing a key pillar of our expansion strategy in the MENA area.” - said Cornelius Matthes, Building Energy’s Managing Director of the Middle East and North Africa – “We are grateful to the Egyptian Ministry of Electricity and Renewable Energy for their trust in our company and we look forward to working on this project helping the development of renewable energy and creating new jobs.

BUILDING ENERGY

Building Energy is an independent producer of energy from renewable sources with a large portfolio of renewable plants in operation, construction and development, with a total pipeline in excess of 2,000 megawatts in Europe, Africa, Central and North America and recently in the Middle East and North Africa region and Asia. In South Africa, Building Energy won the contract for the biggest photovoltaic project on the African continent - 81 megawatts in Kathu - in the first round of the REIPP, the South African government's incentive program for the production of renewable energy. The PV plant has been operating since August 2014.