The Ministry of Electricity studies adding bids of private companies to establish renewable energy plants to its 2035 Strategy which aims to produce about 47% of Egypt’s total energy from renewable resources.
Ministry of Electricity has formed several committees including the Egyptian Electricity Holding Company (EEHC), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) to study offers by investors to establish energy projects with a total capacity of 5GW, Minister Mohamed Shaker told Daily News Egypt.
He stressed that the Ministry will not sign any energy contracts or agreements beginning from this year before it ensures their suitability to the 2035 Strategy.
“Every year, we will announce our plans and target projects, upon which companies can apply to launch power plants and the Ministry will choose the best technical and financial offers,” Shaker said.
The global challenges in the energy sector require the development of production and consumption of electricity. These challenges are fossil fuel depletion, climate change, global warming, and the 17 sustainable development goals set in 2015 by the United Nations.
“The most important of these challenges are: the shift from traditional to smart networks, from regional to global electrical interconnection, from traditional to electric cars, and from fossil-fuel to renewable energy plants,” Shaker added.
Electrical interconnection projects have many benefits in technical, economic, environmental, social, political, and legal aspects. Such projects strengthen security and stability of neighbouring countries as they create an atmosphere of cooperation and dialogue and common economic interests during the construction and operation period.