Mohammed El Khayat

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Renewable Energy Strategy in Egypt

Mohamed Mostafa El-Khayat

New and Renewable Energy Authority, NREA

Egypt

[email protected]

www.energyandeconomy.com

Maghreb Renewable Energy Congress

Rabat, 21-22 May 2013


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- Introduction

- Wind Energy Projects

- Solar Energy Projects

- Available Technical Know-How

- Assessment for Renewable energy plan

CONTENTS


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Introduction


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Resource Assessment

Egypt Wind AtlasAverage Annual Direct Solar Radiation inEgypt


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Wind;12.0%

Solar andothers;

2.8%

Hydro;5.2%

In February 2008, the Supreme Council of Energy had

approved Egypts Renewable Energy Strategy, whichaims to satisfy 20% of the generated electricity fromrenewable energies by 2020, including:-

Renewable Energy Strategy

Share of Renewable Energy Sources by 2020

Total installed

capacities are

around

14 GW ofdifferent

technologies


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Install 3500 MW by year 2027

2800 MW CSP700 MW PV

Estimated Energy

5 TWH/Year (Starting from Year 2020)

14 TWH/Year (Starting from Year 2027)

Fuel Savings : 3.0 million TOE

CO2 abatement : 7.7 million

Solar Energy Targets until 2027

Solar Energy Plans


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(FiT)

NREA

(33%)

(BOO)

EETC: Egyptian Electricity Transmission Company

BOO: Build Own Operate

FiT: Feed-in-Tariff

NREA: New and Renewable Energy Authority

EETC

Introduction

Egypt Renewable Energy Strategy up to 2020, Possible Tracks


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- More than 7600 square kilometers of desert lands have been allocated for

implementing future projects.

- All permits for land allocation are already obtained by NREA.

- Signing land use agreement against 2% of annual produced energy.

- Exempting all renewable energy equipment and spare parts from the customsduties.

- Renewable energy fund has been established.

- Signing long term PPA ( 20-25) years.

- Central Bank of Egypt will guarantee all financial obligations of EETC underthe PPA.

- The project will benefit from carbon credit .

- The project company shall get license for power generation from EgyptianElectricity Regulatory Agency.

Renewable Energy Incentives


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Wind Energy Projects


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Danish WTStall regulatedTubular tower

100 KW

Danish WTStall regulatedLattice tower

300 KW

German WTPitch regulatedTubular tower

100 KW

The first wind farm (5 MW) was established at Hurghada in 1993,

it includes 42 WTs of different types and sizes.

Some components were locally manufactured (towers, blades,other mechanical and electrical components).

Demonstration Projects


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Since 2001, a series of large scale wind farms wereestablished with total capacity of 550 MW in cooperation

with Germany (KFW), Denmark (DANIDA), Spain and

Japan (JICA).

- Another 1000 MW of wind projects are under construction

and development.- In Dec. 2012 NREA launched an auction to install 600

MW (6 x 100MW) by private sector to feed their ownloads and/or sell electricity to their own consumers.

Large Scale Wind Farms


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Wind Farms

Distribution of Wind Turbines,

Zafarana Wind farm, Egypt


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Commercial applications : Telecommunications Remote roads lighting and billboards lighting Remote desert small loads A project to electrify 2 remote settlements with PV systems in

Matrouh Governorate had been implemented, in cooperation withthe Italian Ministry for Environment, Land & Sea. The projectoperated since end of 2010.

Current Renewable Energy Projects

Solar Energy- Photovoltaic (PV) Applications


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Domestic solar water heating systems are used in touristic places.There are some local companies are working in manufacturing andimporting solar water heating systems for competing in the Egyptian

market.

A project for disseminating solar water heaters in hotels andresorts on two governorates is currently under preparation, in

cooperation with the UNEP and Italian Ministry for Environment,Land & Sea.

Total no. of hotels: 17 Total erected area : 1700 m2

Targeted Area : 5000 m2


Solar Energy- Solar Thermal Energy Applications


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140 MW Solar thermal power plant including solar field of 20 MW.

The total investment is about $US 340 mio.GEF has approved $ 49.8 mio. grant for the solar Island.

Japanese Bank for International Co-operation offered the financeof the combined cycle island & consultancy services with about

(19.5 Billion Yen)Project is in operation since June 2011.


Solar Energy- Solar Thermal Electricity Generation


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20 MW at Hurghada in co-operation with JICA/Japan.

20 MW at Kom Ombo in co-operation with Afd/France.

Electrifying fence of Kuraymat Integrated Solar Thermal powerStation ( 8 km) in co-operation with China.

Electrifying three villages at Matrouh Governorate in co-operationwith India.

Electrifying two villages at El-Wadi El-Gedeed Governorate in co-operation with Finland.

On going Photovoltaic Projects

Solar Energy Plans


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100 MW in co-operation with world Bank & African DevelopmentBank.

World Bank allocated a loan of US$ 100 million through CleanTechnology Fund (CTF) to finance this project .

The world Bank & African Development Bank agreed, in principle,to support the Government of Egypt in financing this project by

allocating loans of US$ 170 million each.

On going CSP Projects

Solar Energy Plans


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Available Technical

Know-how


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BLADESBlades represent around 25% of the wind turbine components,

moreover it needs a high technology manufacturing level.

During the demonstration phase of wind farm, fiber glass blades

for 100 kW and 300 kW were manufactured locally in

collaboration with Danish MAT Co. The cost of the locally manufactured unit at that time was

estimated at 73% of the imported turbine cost.

Fiber glass blade manufacturing can be achieved in the

workshops of the Arab Organization of Industrialization (AOI),Suez shipbuilders and fiber glass boat manufacturers

Currently a blade factory is under construction by an Egyptian

company.

Available Technical Know-how


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TOWER

Egyptian manufacturing of wind turbine

towers enjoys a cost advantage, due to

availability of the know-how locally, and

high costs of overseas sea transport and

insurance.Wind turbine suppliers prefer manufacture

towers in the domestic factories.

Many companies in Egypt have the

potential in local manufacturing of towers.Samples of Egyptian manufacturers are;

Orascom Group, Ferrometalco, and the

Egyptian Iron and Steel Co.



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ELECTRICAL COMPONENTS Some of the electrical components such as cables and

transformers are currently manufactured by companies

such as Schneider, ABB, Al-Sweedi Cables and Almaco.

MECHANICAL PARTS

Mechanical components such as shafts can be

manufactured in the workshops of Military factories, AOI

and Ferrometalco as examples.



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An Assessment for RenewableEnergy Plan


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- High potential resources either solar or wind; Potential direct solar

radiation ranging between 2000 3200 kWh/m2/year from North to

South.

- Clear National Targets; 20 % by 2020 and for solar Install 3500 MW

by 2027.

- Total area required for the targeted projects is desert land.

- Part of potential sites are located at Red Sea coast, North Seacoast, .. etc; close to touristic areas, which could include potential

customers.

- Human resources are available.

- Governmental Incentives.

An Assessment for Renewable Energy Plan

Strength Weakness Opportunities Threats


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- Grid: Most of potential sites are far from loads; which seeks extendingtransmission lines to evacuate the generated electricity into thenational grid.

- Incentives:- More dynamic mechanisms still absent; i.e. Feed-in-tariffs and

renewable portfolio standards.- No privilege incentives have been assigned for renewable energy

consumers.

- Subsidy allocated for fossil fuel.- High cost of CSP technology compared with other renewable energy

technologies.- Absence of national obligations for using solar water heaters in

designated sectors (i.e. residential, touristic, etc).

-Weakness of local financin schemes.




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- Continue decreasing of wind and PV prices, this has been reflected in

the new additional capacities each year.

- Use PV systems to power streets, advertising, and remote areas.- For Short term; Focus on low technology of solar energy applications

in promoting local manufacturing market.

- For long term; Focus on R&D applications and link it with the market

needs.- Allocate local loans with soft conditions (low interest rate and long

repayment period).

- Existing of international initiatives such as (MSP and DII).




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- Decreasing of development growth rate due to shortage of energy

availability.

- Low share of local financing schemes will lead to full dependency on

International loans, which need lengthy procedures.

- Unavailability of establishing local market for solar applications.

- Dispersion of R&D efforts




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