Wind Power in Egypt

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Sectoral overview of wind power in Egypt as of September 2013

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Wind Power in Egypt

  1. 1. Wind Power in Egypt Sector Overview September 2013 1 El Yemen St. Apt. 18, 7th Floor Dokki, Giza 12311, Egypt Tel: +2 0100 56 555 35 info@caravelfinancial.com www.caravelfinancial.com
  2. 2. Egypt’s Energy Mix • Total installed capacity of 27,000 MW as of June 2012 • Largest wind generation capacity installed in Africa and the Middle East with a total of 547MW 2 Thermal 87% Hydro 10% Wind 2% Solar 1% Source: Egyptian Electricity Holding Company Annual Report 2011/2012
  3. 3. Steady Expansion in Wind Farms Since 2000 0 MW 100 MW 200 MW 300 MW 400 MW 500 MW 600 MW 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3 Source: Egyptian Electricity Holding Company Annual Report 2011/2012 “Wind Energy in Egypt”, Mohamed Salah El Sobki
  4. 4. National Wind Plan Target to build additional generation capacity of 7,200 MW by 2020 making up 12% of national power capacity 4 NREA* 2,200 MW 31%Private Sector 5,000 MW 69% TARGET CAPACITIES TO BE INSTALLED *New & Renewable Energy Authority
  5. 5. Under development by New & Renewable Energy Authority: – Gulf of Al Zayt 200MW under construction financed by KfW EIB EU – Gabal Al Zayt 220MW by JBIC – Gulf of Suez 120MW by Spain – Gulf of Suez 200MW by JICA – Gulf of Suez 180MW by Spain – Western Nile Bank 200MW Projects in Pipeline – Public Sector 5
  6. 6. • Independent Power Producers: – Italgen 120MW (under construction) • Build Own Operate: – Gulf of Suez 250MW (bidding stage) – Gulf of Suez 500MW • Auction System: – 6 lots at 100MW each (bidding stage) Projects in Pipeline – Private Sector 6
  7. 7. 7Source: http://bit.ly/1azzx06
  8. 8. Gulf of Suez 250MW Build Own Operate Concession • Design, finance, build, own, & operate 250MW wind farm for 25 years in addition to a 220kv-MV transformer station • Off-taker is Egyptian Electricity Transmission Co. (EETC) • Joint wind measurement campaign financed by shortlisted bidders • Total plot area of 37 km2 • Altitude between 100m and 250m above see level • Backed by a financing agreement from JICA 8
  9. 9. Gulf of Suez 250MW BOO continued… 9 2009 • May: request for pre-qualifications issued • Nov: 10 bidders shortlisted 2011 • Jan: Site Measurement Framework Agreement signed between bidders 2012 • Nov: end of wind, topographical, geotechnical studies • Dec: sovereign guarantee secured 2013 • May: request for proposals issued Source: “Status of the Wind Power Market in Egypt”, Dr. Walid El-Khattam
  10. 10. Italgen’s IPP (subsidiary of Italcementi) • Developing 120MW farm to power cement factory (Suez Cement) • Total investment budgeted at about €140 million • Land use agreement signed with NREA in 2012 • located at Gabal-Al-Zeit • Commissioning expected in 2014 • Expandable to 400MW • Contract signed with Egyptian Electricity Transmission Company for connection to the national grid • Currently raising finance Source: http://bit.ly/12dbL7X 10
  11. 11. The 6 x 100MW Auction Lots • Six 15 km2 land plots to host 100MW each in Gulf of Suez under 25 year concessions • IPP system where each developer signs off-take agreements directly with end clients (client list to be submitted with bid) • Government mandated high consumption factories to use renewable energy to meet 50% of consumption starting from 2015 as pre-requisite to obtain licenses • Land allocation agreements on usufruct basis • A minimum of 2% of power output (or monetary equivalent) to be allocated to government • Transmission fees to be paid to EETC • RFPQ launched in Dec 2012, submittal deadline Sep 30 2013 11 Source: http://bit.ly/1bkkiwE
  12. 12. Key Players - Suppliers • Gamessa (Spain): – Installed 406MW capacity in Egypt since 2003 – Awarded contract in 2011 for a further 200MW • Vestas (Denmark): installed 77MW in Zaafarana • Nordex (Germany): installed 63MW in Zaafarana in 2001 • El Sewedy for Wind Energy Generation (SWEG) – Manufactures wind turbines, towers, and rotor blades – Goal to develop, operate and maintain wind farms 12
  13. 13. Key Players – Potential Developers International Firms Italgen (Italy) Toyota (Japan) Mitsui (Japan) Alstom (France) Siemens (Germany) Terna (Greece) Mitsubishi (Japan) AES Corporation (US) Mainstream Renewable Power Iberdrola (Spain) Korea Electric Power Corporation EDF (France) Renewable Energy Services (UK) Enel (Italy) Kharafi National (Kuwait) General Electric (US) Daewoo (Korea) Siemens (Germany) 13 Local Firms El Sewedy Wind Energy Generation PICO Energy Orascom Construction Industries Hassan Allam Holding EK Holding AAW Consulting Engineers
  14. 14. Regulatory Environment • Sector regulated by the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EEUCPRA) also known as EgyptERA • Law 102-1986 forming NREA • Law 100-1996 authorizing private generation • Law 89-1998 setting out general tendering rules for public bidding • Proposed new electricity law liberalizing market (competitive bidding, feed-in tariffs, take or pay contracts) awaiting ratification by parliament • 7,600 km2 allocated for wind farms by presidential decree • Private sector plots allocated under usufruct agreements • Imported components exempted from custom duties • Government mandates high consumption factories to use renewable energy to meet 50% of consumption starting from 2015 14

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