EGP consortium wins preferred bidder status for windpower projects in Morocco

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31 March 2016, Nuclear, Solar, Wind

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The consortium has been pre-awarded the right to develop, design, finance, construct, operate and maintain five wind projects in Morocco with a total capacity of 850 MW, to be confirmed following the signing of the purchase agreements for the energy generated by the plants. Out of the five projects, Midelt (150 MW), Tanger (100 MW) and Jbel Lahdid (200 MW) are located in northern Morocco while Tiskrad (300 MW) and Boujdour (100 MW) are located in the country's south.

"This accomplishment demonstrates that our strategy to expand our footprint in Africa is paying off" said Francesco Venturini CEO of EGP. "We are leveraging on our knowledge and expertise, in collaboration with our partners, to contribute to Morocco's ambitious energy plan that has renewables at its core. The country is an example in North Africa of reliability and transparency in supporting the development of renewable technologies."

EGP and Nareva will establish and own five special purpose vehicles (SPV) holding the projects. Siemens Wind Power will provide the wind turbines, with several components manufactured locally.

The construction of the five plants will require a total investment of approximately 1 billion Euros. EGP will fund the cost of the project corresponding to its 50% shareholding by a mix of equity and debt, the latter through project finance facilities provided by international financial institutions. EGP's investment is in line with the growth targets set out in the company's current strategic plan (2016-2019).

The wind farms are expected to be completed and enter operation between 2017 and 2020. In line with the tender rules, the energy generated by the five wind farms will be sold to ONEE under 20 year-power purchase agreements.

Once completed, the five facilities will contribute to meeting Morocco's growing energy demand and the country's objective to increase power produced from renewable sources. Renewables currently account for about 32% of the Kingdom of Morocco's generation mix and the country aims to increase this share to 42% by 2020 and 52% by 2030.

Source: MarketLine

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