Egypt - Renewable EnergyEgypt - Renewable Energy
OverviewEgypt possesses an abundance of land, sunny weather and high wind speeds, making it a prime location for renewable energy sources. The renewable equipment market is potentially worth billions of dollars. Egypt intends to supply 20 percent of generated electricity from renewable sources by 2022, with wind providing 12 percent, Hydro power 5.8 percent, and Solar 2.2 percent. The solar energy plan aims to install 3.5 GW by 2027; including 2.8 GW of PV (photovoltaic) and 700 MW of CSP (concentrated solar power). The strategy also plans to generate 7.2 GW (12 percent of generated electricity) from wind by 2022. The plan envisions significant private sector involvement, noting that the private sector will take the lead on 67 percent of the plan. Over the next three to five years, the Ministry of Electricity and Renewable Energy plans to add 51.3 GW to current installed capacity.
The New & Renewable Energy Authority (NREA) plays a strategic role in the government’s renewable energy plans. It currently has about 500 MW of wind power plants in operation and 1340 MW under implementation and development, and is expected to contribute substantially to the rapid expansion of wind power capacity. There are also three privately owned independent power producers (IPPs) with total generation capacity of about 2.5 GW, which started operations in 2002-2003 under 20-year long power purchase agreements with EEHC. The Egyptian government renewable energy plans for 2015-2023 include 3.2 GW of government projects; 1.25 GW under BOO mechanisms, and 920 MW as IPPs. In January 2017, Egypt selected 67 companies to take part in developing 4.3 GW of renewable energy projects; currently, pre-qualified companies are in the land-allocation process.
Egypt enjoys excellent wind along the Suez Gulf with an average wind speed of 10.5 m/sec, and Egypt is just one of 38 countries in the world with a published National Wind Atlas. The Government of Egypt is planning to provide 12 percent of generated electricity (6.8 GW) through generated wind energy by 2022.
Since 2001, a series of large-scale wind farms have been established, with total capacity of 550 MW, in cooperation with Germany (KFW), Denmark (DANIDA), Spain, and Japan (JICA). Implementation of the Spanish project in Jebel El Ziet took place in 2013 which clarifies the huge increase in Egypt imports for renewables that year, which were mainly wind generators imported from Spain.
In 2014 the implementation of a JICA wind project started with expectations to raise imports by USD 200 million. Another 540 MW project is under construction at Gulf of Suez, a 580 MW project is in financing also at the Gulf of Suez and a feasibility study is under way for a 200 MW project at West Nile. Additionally, more projects are under preparation in cooperation with Germany, AFD, EIB and EU (200 MW), MASDAR (200 MW), Germany and AFD (200 MW), and Japan (200 MW).
Recently, the GOE allocated an area of about 7,845 square kilometers in the Gulf of Suez region and the Nile Banks for NREA to implement additional wind energy projects.
Egypt’s Solar Atlas states that Egypt is considered a “sun belt” country with 2,000 to 3,000 kWh/m2/year of direct solar radiation. The sun shines 9-11 hours a day from North to South in Egypt, with few cloudy days.
The first Solar Thermal Power Plant at Kuraymat was built in 2011. It has a total installed capacity of 140 MW, with solar share of 20 MW based on parabolic-trough technology integrated with a combined-cycle power plant using natural gas. The power plant is financed from the Global Environmental Facility (GEF) and the Japan Bank for International Development. A 10 MW power plant has been operating in Siwa since March 2015, and the remaining plants are expected to be implemented and operated consequentially in 2016.
- Wind turbines
- Wind towers
- Photovoltaic panels and related technologies
- Concentrated solar power equipment and technologies
OpportunitiesIn 2012, GOE approved the Egyptian Solar Plan, which includes adding 3.5 GW (2.8 GW CSP and 700 MW PV) of solar energy by 2027. The Ministry of Electricity and Renewable Energy signed seven memoranda of understanding worth USD 500 million for solar and wind projects in Egypt. GOE announced an interim target for the first regulatory period (2015-2017) to contract 4,300 MW of both solar and wind energy, and a feed-in tariff (FIT) which will allow Egypt to procure 4.3 GW of solar and wind power production by 2017. Its breakdown is as follows: 300 MW for small solar systems, 2,000 MW of medium- and large-size solar plants, 2,000 MW of medium- and large-size wind plants.
Egypt is also considering financing options to conduct feasibility studies for the following projects:
- Solar-thermal power plant using CSP technology for both electricity generation and water desalination. Solar-thermal power plant for industrial purposes.
- Designing a technical-financial mechanism to promote the use of solar water heaters in Egypt’s residential sector. Local manufacturing of renewable energy equipment.
Web ResourcesU.S. Commercial Service in Egypt
Ministry of Electricity and Energy
New and Renewable Energy Authority
Egyptian Electricity Holding Co.
Egyptian Electricity Transmission Co.
Ministry of Investment
General Authority for Investment and Free Zones
Egypt State Information Service
American Chamber of Commerce in Egypt
Egyptian Government Web Portal
Contact for the Commercial Specialist in charge of the Renewable Energy Sector: Mai Abdelhalim, Mai.Abdelhalim@trade.gov
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