Mainstream’s JV Lekela Power signs MOUs for projects in Egypt

Lekela Power, a 60/40 joint venture between Actis and Mainstream Renewable Power with US$ 1.9 bn investments planned for Africa, announced today the signing of two Memorandums of Understanding (MOUs) with the New and Renewable Energy Authority (NREA) for one 50 MW solar power plant in Aswan and one 50 MW wind power plant in the West Gulf of Suez under the feed in tariff scheme.

Commenting on the MOUs, Chris Antonopoulos, Lekela Power’s CEO said: “We are pleased with the two MOUs, which mark an important step for Lekela Power and its partners. We have a long-term strategic plan to deliver renewable energy in Egypt; and a great ambition to continue to grow a significant presence in the market. Egypt’s abundance of natural resources set the perfect parameters for entering into renewable energy; and presents a strategic solution to the country’s pressing energy demands”.

Lekela has already taken possession of the project land in Aswan and is preparing for site works and studies and will shortly be taking possession of the wind site in the West Gulf of Suez. Lekela Power has additional projects in the pipeline in Egypt, mainly a 250MW wind power plant in Gabal Elzeit under the BOO program, for which Lekela has submitted the lowest overall tariff of 3.961 USD cents per kWh, 2.5% below the second lowest tariff of 4.068 USD cents per kWh submitted to the Egyptian Electricity Transmission Company for that project.

Barry Lynch, Managing Director of Onshore Procurement, Construction and Operations at Mainstream Renewable Power said: “These wind and solar projects meet three important criteria in terms of addressing Egypt’s growing electricity demand. They can be delivered at the scale and the speed required, as well as at a price which is cheaper than new thermal generation.”

Lekela Power’s projects will generate up to 1,000 MW of renewable energy in countries across Africa over the next five years, with 860MW at the development and construction stages and an ambitious plan to pursue further opportunities across Egypt and Africa.