Arab Republic of Egypt Ministry of Electricity & Energy New & Renewable Energy Authority
(NREA)
Ehab Ismail Ameen
General Manager of Planning Dept.
ehab4768@gmail.com
Current and expected contribution of
RES-E in NA countries
ORGANIZATION CHART OF MINISTRY OF ELECTRICITY & ENERGY
Nuclear Materials Authority
Nuclear Power Plants Authority Atomic Energy
Authority
New & Renewable Energy Authority Hydro Power Projects
Execution Authority
Egyptian Electricity Holding Company
Institutional framework:
Establishing NREA (1986)
The national focal point to develop and
introduce renewable energy technologies to
Egypt on a commercial scale together with
implementation of related energy conservation
programs
- Since 2001, series of large scale wind farms were established with capacity of 550 MW in cooperation with Germany (KFW), Denmark (DANIDA), Spain and Japan (JICA) through soft loans.
The 1st CSP plant is 140 MW including solar field of 20 MWe based on parabolic trough technology and 120 MW combined Cycle. It has been operated since July 2011.
RE Current Situation
National Strategy up to 2020
•In February 2008, the Supreme Council of Energy approved an ambitious plan to:
Satisfy 20% of the generated electricity by renewable energies by 2020
12%
Wind
7200 MW
6%
Hydro
2800 MW
2%
Solar
1320 MW
in July 2012 an Egyptian Solar Plan has been approved by the Cabinet which targeting to install about 3500 MW by 2027 :-
(2800 MW CSP + 700 MW PV) ??????
Polices of Implementing RE Strategy
Five policies has been approved to foster the increasing of RE energy contribution as following:
Issuing tenders internationally requesting private sector to supply power from wind energy projects.
Investors are allowed to build & operate RE power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid
will be applied taking into consideration the prices achieved in phase 1.
In Jan. 2013, Egyptera Board approved to apply net metering system to encourage the implementation of PV Roof Top systems.
A heavy industries consumption will be obliged to use a
percentage of its electricity consumption from RE sources.
Support of Egyptian Government
1. Lands Availability:-
- 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.
- Environmental Impact Assessment (EIA) including Bird migration studies have been prepared by NREA in cooperation with international consultants.
- Signing land use agreement with the investor against payment equivalent to 2% of the annual energy generated from the project or its value.
2- Custom Duties:-
- Exempting all renewable energy equipment and spare parts from the customs duties.
3- Power Purchase Agreement :-
- Signing long term Power Purchase Agreement (PPA) ( 20-25) years .
- Central Bank of Egypt will guarantee all financial obligations of EETC under the PPA.
5- Renewable Energy Fund:-
- Establishing a renewable energy fund to cover the gap between cost of electricity from conventional and renewable energies
NREA works as a facilitator and a
supporting body for the private
EETC is committed to purchase all the generated electricity
Governmental Project (1340 MW) Wind
(100 MW) CSP (40 MW ) PV
Competitive Bids (750 MW Wind )
200 MW PV Power Plant (20X10)
Feed-in-tariff:
System will be applied taking into consideration the prices achieved in
Competitive Bids
The developers will sell the generated electricity directly to the consumers
IPP Project (720 MW)
The investor shall sell the electricity generated to his own consumers or
feed his own loads
F
INANCING MECHANISM FORRE
Future Projects for Wind Energy
200 MW, in Cooperation with Germany & EU& EIB
Wind Energy Projects under implementation by NREA
220 MW, in Cooperation with Japan (JICA)
120 MW, in cooperation with Spain.
Projects in the Pipeline (Tendering Phase)
200 MW, with MASDAR
200 MW,, in cooperation with Germany, AFD, EIB, EU.
200 MW, in Cooperation with Germany, AFD
200 MW, in Cooperation with Japan (on the Nile Western Bank).
Projects under preparation
Wind Energy Projects under implementation by the Private Sector
250 MW wind farm (private Sector) on a BOO basis in the Gulf of Suez:
• 10 developers were short listed in Dec., 2009.
• The measurements campaign has been completed and Dec. 1st is the dead line of submitting the offers.
• It is planned to operate the project in 2016.
500 MW wind farm (private Sector) on a BOO basis in the Gulf of Suez
The prequalification documents for the 2nd competitive bid for 500 MW wind farm, in 2 phases (2x250 MW), will be announced during the next few months.
Wind Energy Projects under implementation by the Private Sector
120 MW, in cooperation with Italian Company to supply electricity for its owned factories in Egypt and it is under implantation.
600 MW wind farm in the Gulf of Suez:
• NREA announced for availing 6 pieces of land each one 15 km2 in Suez Gulf for establishing 100 MW wind farm project for each piece of land based on auction system, to build & operate wind power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid.
• The land will be availed to the investor against at least 2% of the annual electricity generated or its value from the project.
A feasibility study for 100 MW CSP grid connected at Kom Ombo site has been conducted.
It is planned to operate the project in 2016.
2 grid connected PV governmental projects, 20 MW each, in Hurghada & Kom Omb are under preparation.
On 27/7/2013, the prequalification developers were invited to submit their prequalification for implementing solar PV power plants (20MWx10) based on BOO system and selling the generated electricity to the Egyptian Electricity Transmission Company
Future Solar Energy Projects
The Main Challenges
• Egypt is now struggling to meet its own energy needs because:-
Increasing the growth rate of the energy demand
The availability of Natural Gas for current and future power plants has turned into a real constraint.
• Securing the required huge finance for RE projects and the transmission lines by the public and private sector.
• Securing the sufficient financial resources for RE Fund.
• The average cost of kwh generated from RE projects still higher than the same kwh from conventional power plants due to Low Energy Tariff
• There is not electricity market.
The Main Challenges
Challenges to the adopted concept (continued)
• Quick evolution of the power demand in south Mediterranean over the period necessary for the development of necessary infrastructure, which will rely principally on conventional sources.
• Time needed to develop the required infrastructure as well as mobilizing necessary investments.
• Economical constraint regarding operating these transmission lines on renewable energy solely without considering mixing with conventional energies or expensive storage techniques.
• Substantial changes needed in the European markets which
include, limited number of injection points, new congestion
management protocols, market integration, opening the
internal electricity market to south Mediterranean counties.
When North Mediterranean Countries need to
Import Electricity from South Mediterranean?
What We Are Expecting from BETTER?
• There are many projects & studies conducted or under conducting and funded by EU.
• But we are looking forward and expecting from BETTER different results and recommendations.
• Supporting Egypt to implement its ambitious RE plans through conducting technical & economical study to submit innovative methods or recommendations to overcome the challenges faces RE dissemination via:-
– Integrating with the existing studies to reform the electricity subsidy – Supporting the Creation of Electricity Market
– Operating RE Funs on sustainable basis.
– ???????
Boundary
Needs Assessment
First Market
Second Market
• Development of markets
• Technical rules
• Legal rules
• Commercial rules
