The UAE’s AlNowais Investments Company will increase the capacity of the planned solar energy stations in Kom Ombo, Aswan to 500MW instead of 200MW.
Informed sources told Daily News Egypt that the company submitted a request to Minister of Electricity Mohamed Shaker to increase the project’s capacity.
The Cabinet later approved AlNowais’ request and an agreement was signed to this end. Under the agreement, the Egyptian Electricity Transmission Company (EETC) will purchase the produced energy.
The sources indicated that the New and Renewable Energy Authority signed a contract with AlNowais to obtain additional land in the Kom Ombo area to accommodate the production capacity increase. The land to be handed over to the Emirate company within days.
The sources stated that the EETC was negotiating with the Emirati company to reduce the purchasing tariff of its production, however, the two sides agreed to keep it at 2.48 cents per kilowatt. The tariff includes the right to usufruct the land.
The sources pointed out that the government’s approval to increase the capabilities of the Emirati company’s projects came after the latter expressed its desire to increase its investments in Egypt and cooperate with the government in plans to diversify energy resources.
“The company allocated EGP 3bn to launch a coal-fired power station, but the project was canceled as Egypt wanted to shift to renewable energy,” the sources added.
The company will also inaugurate a 500MW wind farm in Ras Ghareb’s Jabal al-Zayt region. Egypt will purchase the energy production of the plant at 3.1 cents per kilowatt.
The sources indicated that the project will be implemented over several stages, and the tariff will be fixed throughout the phases.