The Egyptian Minister of Electricity and Energy announced that the state intends to build 10 solar power plants by 2017, as well as other wind projects and the creation of combined cycle plants of gas and solar energy. The agencies responsible for the implementation of these plants received 35 offers from private companies at the recent Egypt/GCC Investment Forum.
The government has established rules to regulate the relationship with the private sector in the field of electricity production. It also has standard contracts to purchase electricity from the producing companies for a period of 25 years. The state offers companies the opportunity to have the land under usufruct status or to buy them in exchange for 2% of the value of the electricity that will later be injected into the national distribution grid. The private sector’s participation over the next 5 years will be 35 % in public plans of wind power and 65 % in other renewable energy projects.
The country is developing a local industry in this area. Manufacturing components represent almost 50 % of the equipment of solar power plants and it is planned that they will represent between 30 -70 % in solar energy parks.
The Ministry of Energy has finished a new atlas of solar and wind energy which will be a guide for investors.
Egypt is considering an electricity project which links with Ethiopia and Sudan and electrical projects linked with Saudi Arabia and North Africa are on track.
On 9 December, the electricity minister inaugurated a solar power plant that will generate 40KW with a construction cost of a million pounds.
Source: Al-Wafd, Al-Masrya al-Youm, 10/12/2013
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