A large number of renewable energy projects will be announced by the end of 2020, Minister of Electricity and Renewable Energy Mohamed Shaker has told Daily News Egypt.
The expected announcement comes as part of the government’s plan to expand projects and diversify sources of production. It includes solar energy projects that are being worked on with one of the institutions on auctions scheme.
The minister added that Egypt’s new and renewable energy sector is very attractive to investors compared to other countries, especially if the conditions of financing, taxes, land availability, and regulatory controls are considered. He noted that his ministry has already received offers to buy energy produced from solar power plants at 2.45 piasters and 3 piasters from wind farms.
Shaker explained that the Ministry of Electricity and Renewable Energy is completing its plan and projects to provide the best quality of electricity to all subscribers. There are still many projects for the development of transmission and distribution networks being implemented, he added.
He noted that his ministry is about to complete the regulations for the electric vehicle system, and grant licences to companies wishing to launch automotive charging units.
Shaker confirmed that a price has been set for selling KW hours for electric cars, saying that the price is attractive and beneficial to all those involved, including electric car owners.
The minister stressed that intensive meetings have been held with the Ministries of Military Production, Industry and Trade, and the Public Enterprises, among others, to reach the best decision and implementation formula.
This is particularly important since the Ministry of Electricity and Renewable Energy’s role is limited to delivering the necessary electricity to charging units and implementing the infrastructure for that. It will also be responsible for determining the tariff value.
Shaker noted that the ministry has signed the contracts, with Danish company Vestas, for the construction of wind power plant in the Gulf of Suez that will have a capacity of 250 MW.
He also said that this project is one of the largest wind energy projects in Egypt, which will be constructed on land along the western coast of the Gulf of Suez in the Red Sea Governorate. This area is characterised by high wind speeds.
The minister added that the project’s investment amounts to about €250m, which will be financed through an agreement between Egypt and its European partners, including the French Development Agency (AFD), the European Union (EU), the European Investment Bank (EIB), and the German Development Bank (KfW).
It is expected that the project will be completed, with operations starting and its connection to the electricity grid in 35 months. The project’s annual electricity production is expected to reach 840 GW/H, to contribute in saving the equivalent of about 175,000 tonnes of oil annually. The plant will also reduce carbon dioxide emissions by 475,000 tonnes annually. This comes in addition to providing 4,000 temporary job opportunities during the implementation phase, and 100 permanent job opportunities throughout the project’s lifespan.