The Egyptian New and Renewable Energy Authority (NREA) has signed an agreement with Spain’s TSK to establish a 26 MW photovoltaic solar park in Kom Ombo, Aswan, for around $23.35 million, Al Ahram reported.

“The plant will be built over an area of 500,000 square meters. It is expected to produce 53,000 MW annually,” said Mohamed El Khayat, head of the NREA.

The signing ceremony was attended by Egyptian Minister of Electricity Mohamed Shaker.

Agence Française de Développement (AFD) will part-finance the Kom Ombo solar park with a $46.7 million soft loan, part of which will be allocated to the park while the remaining part will fund other energy projects in Egypt.

Using electricity from solar resources will help prevent the emission of around 30,000 tons of carbon dioxide, El Khayat stated, adding that this ought to be finalized by mid-2019.

The agreement comes as a part of the ministry’s plan to diversify energy and to produce 20% of Egypt’s overall energy from renewable resources by 2022, before reaching 37% in 2035.