Elsewedy Electric plans to build two 500 MW wind farms in cooperation with Marubeni Corporation of Japan, with investments of up to €500m.
Sources at the company told Daily News Egypt that there are negotiations underway with the New and Renewable Energy Authority (NREA) to allocate land for the two power plants. The company is choosing between a plot in the Gulf of Suez and another west of the Nile.
Elsewedy Electric had signed a memorandum of understanding with Marubeni to establish two 500 MW wind farms on a build, own, operate (BOO) scheme in March, during President Abdel Fattah Sisi’s visit to Tokyo.
The sources added that the price of energy produced from the two wind stations will not exceed 3.8 cents per kW, which is the value contracted by the Egyptian Electricity Holding Company in alliance with Toyota, Orascom, and GD France.
The sources explained that Elsewedy and Marubeni will start negotiations with banks to finance the two projects after obtaining the land, and agreed in principle with Japanese banks to participate in financing the two stations.
The sources revealed the cessation of negotiations with the Ministry of Electricity to allocate six plots of land to inaugurate six plants to produce electricity from wind power in the Red Sea governorate, meant to have a capacity of 100 MW per station.
The sources pointed out that Elsewedy Electric has stopped all plans for the six wind stations and will not implement them, especially as the contract includes the sale of energy produced directly to consumers and this is what the company is rejecting.
Elsewedy had embarked on intensive negotiations with the Ministry of Electricity and the NREA in 2014 to establish the six wind farms with a capacity of 600 MW.
The company also disagreed with the Ministry of Electricity about the value of land allocated for projects.