Egypt's Electricity Sector Strategy and Success Stories

ENERGYPT 2016 1
statement
......................................................................................
Minister of Electricity
& Renewable Energy
Insight
......................................................................................
Electricity Sector Strategy
A Message From The President
......................................................................................
Egypt’s Energy Future
Success Stories
......................................................................................
Egyptian Electrical Leap
Burullus Power Plant
New Capital Power Plant
Beni Suef Station
Attaqa Station
Mahmoudia Station
Mobile Station
El Ain El Sokhna Station
Assiut Station
Electricity Transmission
Siwa Solar Plant
Gabal El-Zeit Wind Farm
Business in Depth
......................................................................................
Clean Energy Revolution
Prepaid Smart Meters
Energy Efficiency
Nuclear Energy
Coal-Fired Usage
02
11
12
13
14
16
18
20
22
23
24
26
27
28
31
32
34
37
04
07
Contents
ENERGYPT Issue1 / 2016
Prepared By / EEHC
Editor in Cheif
Dr. Hassan Mahmoud
Managing Editor
Mona Ahmed
Editorial Team
Ahmed Fouad
Haitham Moselhi

“Together we shall move forward in building a democratic civil state based on justice.
Let us all build a new nation and we will succeed with the help of God”
It was definitely necessary to begin immediately in the construction of the infrastructure
needed to attract investments in the electricity sector and also to create new legislative
modifications encouraging more investments…
An unprecedented achievement in the history of Egypt was marked by the development
of the National Egyptian Electricity Grid in order to overcome the severe shortage in the
production of Electricity. In addition to this, we will establish the first nuclear station
in El-Dabaa. Huge efforts are exerted in the implementation of “Egypt’s Energy Sav-
ing Plan”. The plan met its target in summer 2015 despite the increasing loads and high
temperatures during the season. We recommend working with the same pace to maintain
high quality performance and even higher achievement levels during the coming summer.
I am also impressed by the cooperation of the hardworking team representing the Minis-
try of electricity. The team was very efficient in coordinating work between International
companies that took part in “Egypt’s Electricity Saving Plan”.
A MESSAGE FROM THE PRESIDENT…
ENERGYPT 2016 3

There is no doubt that Egypt is confidently and steadily ad-
vancing in its democratic and developmental path, under
the wise leadership of President El Sisi. The electricity file
carries great importance and enjoys utmost support. Elec-
tricity is crucial for development and growth in Egypt. It is
the cornerstone of development, progress and moderniza-
tion in our present world and the only way for our society
to prosperity. We are proud that the Ministry of Electricity
and Renewable Energy was depicted as the “black horse”
for 2015, playing a vital role in our nation’s progress.
The success of the economic conference
in Sharm El Sheikh was the start point...
• “Siemens” agreement for the construction of three power
plants, with a total capacity of 14,400 MW, and a total invest-
ment of about EUR 6 Billion.
• The plant for the new administrative capital and that for the
Burullus area during the month of January 2016. Most of the
main equipment is expected to arrive in early April 2016.
• Beni Suef power plant project.
• “General Electric - Orascom” agreement to implement the im-
mediate plan for West Assiut and West Damietta plants, with
a 750 MW capacity and investments amounting to US $650
million.
• Benchmark and Aqua projects.
• A 2300 MW power producing plant, operating in a combined
cycle system.
There was utmost attention in regards to energy production and
transmission.
Word by
Dr. Mohammad Shaker
Minister of Electricity and Renewable Energy
Success story (2015)
ENERGYPT 20164

Producing electricity from coal:
• Oyun Musa project. A 2,640 MW power plant.
• Offers from “Dong Fang” Company and “Shanghai Electric” to
set up two power plants (EPS system + Finance) operated by
coal technology at Hamrawein Land on the Red Sea coast,
with the ability to produce 2,640 MW.
• Another project for generating and storing of electricity with the
capacity of 2,100 MW at Attaqa with investments estimated at
around $ 2.3 billion.
• Regarding the project of smart meters, the Ministry has signed
a memorandum with Huawei (China) to install 10 million meters.
• Adding more power generation projects with the production of
6,882 MW in service with a total investment of 38.5 billion pounds.
• Other projects done by The Renewable Energy Authority, such
as a Wind Generation project executed to produce 200 MW.
This project was done on November 2015 with cooperation of
the “German Development Bank”.
• Proposals submitted by the Chinese “Dong Fang” and “Shang-
hai Electric” companies with contracting systems: EPC + Fi-
nance. It operates coal technology at Hamrawein land located
on the Red Sea coast with 2,640 MW.
• Project pumping and storage capacity of 2,100 MW mountain of
Attaqa, with investments estimated around $ 2.3 billion.
• A Smart Metering project memorandum was signed with
China’s Huawei to implement 10 million meters EPC + Finance
• Additional production capabilities of 6,882 MW, with a total
investment of 38.5 billion EGP.
• Projects held through “New and Renewable Energy Authority”,
as a Wind project was implemented with the power of 200 MW
in cooperation with the “German Development Bank”, and the
launch of the project was in the 29th
of November 2015.
• Feed-in tariff programs.
• Competitive tender programs.
• Water Plant projects.
The electricity sector strategy
functions on a number of axes:
1. Ensuring electricity sources.
2. Sustainability.
3. Institutional development and governance of electricity compa-
nies.
4. Creating and regulating a competitive market for electricity.
5. Controlling emissions and taking weather changes into con-
sideration.
6. Supporting a unified grid for the transmission of electricity in
2015, at a cost of 7 Billion EGP.
7. Rationalizing energy consumption and improving the efficiency
of its utilization was a point of great importance.
8. Improving energy efficiency in relation to production.
9. Improving energy efficiency in relation to consumption.
10. Improving service provided to subscribers.
11. Developing call center performance.
12. Developing customer service centers.
13. Updating regional and local control centers.
We are proud that the Ministry of
Electricity and Renewable Energy
was depicted as the “black horse”
for 2015, playing a vital role in
our nation’s progress.”
ENERGYPT 2016 5

Overcoming power cuts and
a summer with no blackouts
Average power cut periods in summer 2014-2015
In June 2014, 1,871 MW
In July 2014, 1,988 MW
In August 2014, 3,398 MW
In June 2014, 0 MW
In July 2014, 0 MW
In August 2014, 0 MW
There is a great interest in building a proper legislative structure:
2014 legislations
The creation of the New and Renewable Energy Authority.
Electricity feed-in tariff law.
Law 203 stimulating investment in the Renewable Energy Sector.
2015 legislations
The 9/7/2015 electricity law and its Executive Code.
Egypt’s 50-year dream... The Dabaa Project
In the presence of President Abdel Fatah El Sisi, an agreement
was signed on 19/11/2015 between the governments of Egypt
and Russia for the construction of a nuclear powered electric-
ity plant at El Dabaa and Matrouh Governorate, as Dr. Sergey
Kirienko, the Chief Executive Officer of the Russian ROSATOM
company signed on behalf of the Russian side.
Other agreements were also signed:
1. Financial agreement, related to the loan was signed by the
financial ministers of Egypt and Russia.
2. A memorandum of understanding regarding the cooperation
between Egypt’s “National Center for Nuclear Safety and Ra-
diation Control” and the “Federal Environmental, Industrial and
Nuclear Supervision Service” of the Russian Federation.
Participation in international
and regional conferences
1. The events of the Global Conference on the energy of the
future. (UAE)
2. The Conference stressed on enhancing the partnership and
cooperation in the field of energy sustained development.
(Morocco)
3. Bilateral meetings with the Russian side, and visiting a number
of Russian power plants and nuclear sites.
4. The 23rd
International Conference & Exhibition on Electric-
ity Distribution (CIRED), held in Lyon, France, in 2015.
5. Calls for investments for Renewable Energy projects in Egypt.
(Italy)
6. The Third Conference on Energy and Nuclear Power in Africa.
(Kenya)
7. Technically supporting African countries by providing training in
various electricity related fields.
Electricity is crucial for devel-
opment and growth in Egypt. It
is the cornerstone of develop-
ment, progress and moderniza-
tion in our present world and
the safe bridge for our society
to prosperity. ”
ENERGYPT 20166

1Ensuring the sources of electricity
Ensuring power sources depends on
achieving a number of goals:
A) Improving power efficiency, this is applied through:
• Raising the efficiency of current plants.
• Converting gaseous units to the combined cycle system.
• Reducing electricity waste in transmission and distribution
grids.
• Encouraging dispersed generation in remote areas.
• Expanding the issuance of emergency efficiency certification.
–– From the consumers’ side:
• Increasing awearness campaigns about efficient energy use
to avoid costly electricity bills as the government will raise the
electricity rates and reduce funding.
• Utilizing smart meters that will participate in managing demand
on power.
• Expanding the use of the highly efficient LED lamps.
• Replacing street lamps with more efficient ones.
B) Diversification of power sources, this is applied through:
• A better mix of electricity generated by traditional methods.
• Maximizing the role of New and Renewed energy in the future,
i.e. solar, wind and bioenergy.
• The implementation of new technologies that were not applied
before, ex., nuclear sources and coal. Also pumping and stor-
age technologies (the construction of the first pumping and
storage plant in the Middle East, at a capacity of 2,100 MW, is
planned for 2022, at Mount Attaqa , Suez Governorate).
C) Supporting transmission and distribution grids:
• Supporting transmission and distribution grids is a necessity,
particularly, in light of the expected huge production capabili-
ties within the coming years. In addition, the expansion in the
utilization of renewable energy requires the presence of robust
and flexible transmission and distribution grids on all levels.
• International electrical connection is one of the mechanisms
that help secure and enforce grids. In 2019, it is expected to
finalize the Egypt-Saudi connection, which will add 3000 MW
to the capacities of grids in both countries. In addition, connec-
Electricity Sector
Strategy
Ensuring The
Sources of
Electricity
Development
of Electricity
Companies
Creating &
Regulating a
Competitive
Electricity Market
Controlling
Emission &
Monitoring
Weather
Changes
Sustainability
STRATEGY
ENERGYPT 2016 7

tion will be enhanced among Eastern (Jordan, Syria, Lebanon
and Iraq) and Western Arab Nations (Libya, Tunisia, Algeria,
and Morocco). Connections with African countries are also
expected through the trio connection between Egypt, Sudan
and Ethiopia.
• The future strategy of the electricity sector is geared towards
relying on intelligent grids in the field of distribution. Such grids
will play a big role in improving the efficiency of power utilization
and secure power supply and emission reduction, in addition
to reducing investment required for the infrastructure of those
grids.
D) Encouraging private sector participation:
The future strategy of the electricity sector aims to encourage
the private sector in the fields of production and distribution of
electricity. A number of measures has already been taken ito
consideration:
• Announcing power tariff.
• Promulgation of the law encouraging investment in the field of
renewable energy.
• Amending the status of the New and Renewable Energy Au-
thority, allowing it to go into partnership with the private sector
to produce, operate and sell renewable energy.
• The promulgation of the unified electricity law, ensuring trans-
parency and neutrality of all electricity producers and distribut-
ers, whether state-owned or private sector companies.
2Sustainability
Sustainability in the electricity sector relies on treating the de-
fective financing structure of electricity companies through:
• Dealing with companies current debts.
• Restructuring electricity rates and gradually cutting subsidiza-
tion.
3Institutional and governmental devel-
opment of electricity companies
Institutional and government development of electricity
companies can be accomplished by achieving a number of goals:
• Speeding up the creation for the planning of energy authority
which will be responsible for planning for the energy in gener-
ally in Egypt and coordination with relevant bodies. This will aid
the government in making energy policy decisions and organiz-
ing the necessary investment.
• Restructuring the Egyptian Electricity Holding Company and
the Egypt Electricity Transmission Company in light of the
unified electricity law. This will lead to the restructuring of com-
pany activities, in addition to restructuring Finance and Human
Resources Management..
• Maximizing the role of the Egyptian Electric Utility & Consumer
Protection Regulatory Agency in light of the unified electricity
law and achieve neutrality and transparency to all parties.
4Creating and regulating a competi-
tive electricity market
This can be done through:
• Completely separating Egypt Electricity Transmission Company
from the Egyptian Electricity Holding Company.
• Creating grid operators in order to have a competitive market.
An important role will be played by Egypt Electricity Transmis-
sion Company during the transitional period.
• Encouraging the participation of the private sector.
• Maximizing Egypt’s regional role in the international energy
market.
• Encouraging local and international investors to venture into
electricity activities by privatization of the electricity sector.
5Controlling emission and monitor-
ing weather changes
This can be achieved by:
• Supporting investment in the field of energy efficiency.
• Supporting investment and expanding in the field of New and
Renewable Energy.
• Cooperating with international organizations to help in control-
ling the environmental effects of weather changes.
• Supporting necessary policies to reduce the emission of green-
house effect gases and air pollutants resulting from electricity
plants.
ENERGYPT 20168

Production projects planned
for year 2015-2016 with in-
vestments amount of EGP
20.7 billion + US 2.7 billion
(emergency plan) + EUR 1.03
billion (prepayment for the
preparations of sites contract-
ed to Siemens in order to add
14,400 MW) + EGP 1,230 bil-
lion (for the addition of mobile
units (60*5 MW), a total capac-
ity of 300 MW) at total cost of
about EGP 52.4 billion).
2- Medium term plan (2016-2018)
- A growth rate of 7% has been projected for this period, in accordance
with expected development of different growth rates in the State.
- Consequently, added capacities during that period are expected to be:
Short, medium and long-term plans
in the field of electricity production
We can see from the above that the total capac-
ity required to be added by the medium term
plan, ending in the year 2018, is about 21,952
MW, with total investment needed amounting to
US 13,941 billion, the equivalent of EGP 111,528
billion.
21,952MW
The total capacity required
to be added year 2018.Year Capacities (2016/2017) MW (2017/2018) MW Total MW
Wind --- 870 870
Solar cells --- --- ---
Photovoltaic cells 1650 870 2520
Hydro units --- 32 32
Compound cycles
units
6350 1300 17300
Steam units ---
Natural gas and heat-
ing oil
1300
Total 8000 13932 21952
Item
Compound
capabilities %
Concentrated solar power 0,05%
Concentrated solar power
(photovoltaic cells)
0
Wind power 2%
Hydro power 7%
Gas and diesel (simple
cycles)
20%
Natural gas and heating oil 71%
Coal 0
Nuclear power plants 0
Item
Compound
capabilities %
Concentrated solar power 0,05%
0
Wind power 1%
Hydro power 8%
cycles)
21%
Coal 0
Current power mix status Power mix by the end of 2015-2016
ENERGYPT 2016 9

We can see from the above
that the total capacity required
to be added by the year 2030,
is about 51,738 MW, with total
investment needed amounting
to US 135.3 billion, the equiva-
lent of EGP 1082 billion.
The results of the study showed the need to add new capabilities to produce
electricity from different sources during the period 2019-2030, as follows:
Power mix
by the end
of 2030
Natural gas
& heating oil
Coal
Gas & DieselNuclear
Wind Power
Solar
Hydro Power
3- Long term strategic plan (2019-2030)
- A growth rate of 7% has been projected for this period, in ac-
cordance with expected development of different growth rates in
the state.
Consequently, added capacities during that period are expected to be:
- International consultant, Sofreco, had conducted a study to de-
termine Egypt’s power needs until the year 2035. The study was
performed in cooperation with the Ministry of Electricity and Renew-
able Energy, the Ministry of Petroleum, and other Ministries relevant
to electricity consumption (industry, Housing and Transportation).
The Supreme Council of Energy decided to choose the first sce-
nario, aiming to achieve 20% of the New and Renewable Energy.
The following was taken into consideration:
• EGas and the Egyptian General Petroleum Corporation esti-
mates of future gas and oil production.
• A 50% reduction in power subsidy by the year 2020, rising up to
100% by the year 2025, compared with its level in 2014.
• The possibility of adding coal operated plants in 2019-2020.
• Nuclear plants becoming operable, in accordance with the plan
of the Nuclear Plants Authority for the production of electricity.
First unit expected to produce 1,200 MW in 2023-2024.
• Realizing the strategic goal of maximizing the participation of
New and Renewable Energies.
• Continuous efforts to improve the efficiency of energy consumption.
Item
Added
capabilities (MW)
Concentrated solar power 6950
9020
Wind power 9350
Hydro power 68
Liquid fuel (simple cycles) 100
Liquid fuel and natural gas 4650
Coal 16800
Total 51738
Item
Compound
capabilities (%)
Concentrated solar power 6%
10%
Wind power 10%
Hydro power 3%
cycles)
3%
Coal 15%
Nuclear power plants 4%
51,738MW
The total capacity required
to be added year 2030.
15%
49%
3%
3%
4%
10%
16%
ENERGYPT 201610

Siemens will deliver three ready-to-
use gas-steam power plants with a
capacity of 4.8 GW each.
In the presence of the Egyptian President,
Abdel Fattah El Sisi, the German Vice
Chancellor, Sigmar Gabriel, Egypt’s Min-
ister of Electricity and Renewable Energy,
Dr. Shaker Elmarkabi, and the President
and CEO of Siemens AG, Joe Kaeser.
A contract was signed between Siemens
and the Egyptian government was made
on the 14th
of March, 2015 during «Egypt
Economic Development Conference -
EEDC» in Sharm El-Sheikh.
Egypt’s Electrical Leap
Success Stories
Egypt and Siemens
massively increase power
generation capacity...
14.4GW
3 Power Stations
ENERGYPT 2016 11

In the context of the Egyptian govern-
ment’s plans to significantly increase
power generation capacities in the
country, Siemens AG, Germany
(acting as EPC and leader of the
consortia with various local partners
being responsible for civil works), and
the Egyptian army Authority Forces
(acting on behalf of Egyptian Electric-
ity Holding Company (“EEHC”) have
recently concluded contracts for the
supply, installation and commission-
ing of the Burullus Power Plant. The
capital expenditure of the projects is
approximately EUR 2 billion.
Burullus Power Plant will consist of
four Combined-cycle Modules, with a
nominal electricity generating capacity
of 1,200 MW each. The overall gen-
erating capacity of the power plant
will be 4,800 MW. The power plant
is intended to be partially operating
in open-cycle mode by the middle
of year 2017 and fully operational in
combined-cycle mode by mid-2018.
The power output from the proposed
plant will be sold to the Egyptian Elec-
tricity Transmission Company (EETC).
The power plant will utilize natural
gas as its primary fuel, and also have
the capability to operate using sollar
(light fuel oil). The ability to “dual-fuel”
the power plant (with natural gas or
sollar) will provide security of electric-
ity supply in the event that gas sup-
plies are unavailable for any reason.
In addition, emergency generators,
for the plant safe shut down, operat-
ing on sollar oil (light fuel oil) will also
be provided on-site to drive key items
of equipment within the power plant
in the event of a power supply failure.
Burullus Power Plant
4,800MW
Generated from four
combined cycle modules”
Success Stories
ENERGYPT 201612

I
n the context
of the Egyptian
government’s
plans to signifi-
cantly increase
power genera-
tion capacities in
the country, Sie-
mens AG, Ger-
many (acting as
EPC and leader
the consortium
with various local
partners be-
ing responsible for civil works), and
the Egyptian Army Authority Forces
(acting on behalf of Egyptian Electric-
ity Holding Company (“EEHC”) have
recently concluded contracts for the
supply, installation and commission-
ing of the New Capital Power Plant
of 4,800 MW. The capital expenditure
for each of the projects is approxi-
mately EUR 2 billion.
Cairo Electricity Production Company
(CEPC), a company incorporated in
Egypt and affiliated to the Egyptian
Electricity Holding Company (EEHC)
proposes to construct and operate
a new thermal power plant at a se-
lected site East of Cairo Governorate,
which is located in the desert East
of Cairo along the East-West growth
corridor from Cairo to Suez and
Sokhna, North of the katameya / Ain
sokhna freeway. The site is within an
existing piece of land allocated to the
Cairo Electricity Production Company
(CEPC) upon the agreement of the
Minister of Housing, Public Utilities
& New Communities (MHPUNC). The
overall proposed site area is approxi-
mately 744,811.44 m2.
The Cairo New Capital Power Plant
will consist of four Combined-cycle
Modules, with a nominal electricity
generating capacity of 1,200 MW
each, and the overall generating
capacity of the power plant will be
4,800 MW. The power plant is intend-
ed to be partially operational in open-
cycle mode by the middle of 2017
and fully operational in combined-
cycle mode by mid 2018. The power
output from the proposed plant will
be sold to the Egyptian Electricity
Transmission Company (EETC).
The power plant will utilize natural
gas as its primary fuel, and also have
the capability to operate using sollar
(light fuel oil). The ability to “dual-fuel”
the power plant (with natural gas or
sollar) will provide security of electric-
ity supply in the event that gas sup-
plies are unavailable for any reason.
In addition, emergency generators,
for the plant safe shut down, operat-
ing on sollar oil (light fuel oil) will also
be provided on-site to drive key items
of equipment within the power plant
in the event of a power supply failure.
New Capital Power Plant
Success Stories
ENERGYPT 2016 13

Success Stories
Beni Suef 4,800 MW
Combined-cycle
Power Plants
The Ministry of Electricity and Renewable Energy will add 14,400 MW to
the national grid within two years, in collaboration with the German engineering
conglomerate, Siemens. This will come from the three new power plants imple-
mented by Siemens in Beni Suef, Burullus and the new Administrative Capital.
ENERGYPT 201614

Agreement on
4.8gigawatt
(GW) Beni Suef
power plant in
Southern Egypt
A large complex of electricity generators
will be established in Beni Suef with a total
targeted capacity 4,800 MW and will produce
one-third of it without fuel, by depending on
the exhaust of gas units. It will include eight gas
units and three steam ones. The 4,800 MW power
plant will be built in four modules; each consists of
two H-class gas turbines, two heat recovery steam gen-
erators, one steam
turbine and three
generators. Siemens
H-class technology
is matching Egypt’s
requirements, com-
bining high output
with record-breaking levels of efficiency.
The Ministry followed unconventional ways and tech-
nologies in the implementation of the project to escape
the crisis as soon as possible. This was done through
cooperation with the sovereign institutions that have
facilitated the action, especially with regards to the two
companies implementing the urgent plan, namely
“Siemens” and “Elsewedy Electric”.
ENERGYPT 2016 15

ATTAQA POWER PLANT..
Smashed the World Records
Success Stories
ENERGYPT 201616

A
ttaqa power plant is
part of Egypt’s emer-
gency plan in facing
the shortage in elec-
tricity production. The
objective of the project
is to increase the capacity and maintain
the reliability of the power generation
system to contribute towards meeting
the electricity demand on the Unified
Power System (UPS) in the short to
medium term.
The project involves the design, sup-
ply, construction and commissioning
of a 650 MW steam power plant to
be located in the vicinity of Suez city
approximately 150 Km East of Cairo.
The power station will be dual (gas
/ mazout) fired with a gross installed
electrical generating capacity of 650
MW. To evacuate the power generated
from Suez power plant it is planned
to interconnect to the 220 kV network
through the rehabilitation of the existing
double circuit over-head transmission
line to Suez (2) and implementing two
additional 220 KV underground cables.
The Egyptian Electricity Transmission
Company is responsible for network
expansion, upgrading, ownership and
operation; therefore the transmission
line costs were not be included in the
overall project cost.
The outcome of the project is the
increase in the installed electricity gen-
eration capacity towards the midterm
target of 41,000 MW and increase in
the supply of electricity to the UPS to
meet the annual demand increase of
6.2 %. Also to guarantee the availability
of power to increase the number of
consumers from 24.7 million in 2008/9
to 34 million in 2017.
The Attaqa project started in Decem-
ber, 2014, when the Egyptian Ministry
of Electricity and Renewable Energy
has signed an engineering, procure-
ment, and construction contract with
Elsewedy Electric subsidiary as a main
contractor for the Egyptian Ministry of
Electricity and Renewable Energy for
the design, supply, construction, and
installation of the plant. As Siemens has
tested, commissioned, and connected
the gas turbine and generator pack-
ages to the national grid.
ENERGYPT 2016 17

O
ne of the mega projects of the
Egyptian Ministry of Electricity and
Renewable Energy is the Mah-
moudia project. The project con-
sists of two 900 MW combined-
cycle modules, each with two 300
MW high-efficiency gas turbines,
two multi-pressure heat-recovery
steam generators without supple-
The second
gas-fired power
project located at
Al Mahmoudia
Success Stories
ENERGYPT 201618

mentary firing and a 300 MW Re-heat
steam turbine generator. Elsewedy
PSP, being awarded the main EPC for
Mahmoudia Power Plant, is respon-
sible for the engineering, design,
procurement, manufacturing, supply
and transportation of materials and
equipment, installation, erection,
construction, testing, commissioning
and on-load testing. “Ansaldo” has
been awarded a contract to supply
two AE94.2 gas turbines rated at 170
MW each (in ISO conditions) and the
relative generators, engineering, erec-
tion and start-up services for the open
cycle power plant at Al Mahmoudia (El
Beheira governorate), assigned by the
Elsewedy Power System Projects.
“The 330 MW gas-fired project
is the second project in the con-
tract between “Elsewedy Electric
PSP” and the government”
ENERGYPT 2016 19

A
s a result of electricity shortage
and high demand for electricity,
the Egyptian Ministry of Electricity
and Renewable Energy has paved
the way to General Electric to boost
the country’s electricity. GE has supplied Egypt
with dozens of advanced and easy-to-deploy gas
turbines and other power generation technol-
ogy. Together they produce 2.6 GW – enough to
produce electricity for 2.5 million Egyptian houses.
The turbines, some of which are mobile, are lo-
cated at 25 sites around Egypt, including the Red
Sea resort town of Sharm El-Sheikh and Port Said
at the Mediterranean end of the Suez Canal.
GE technology includes 12 heavy-duty gas
turbines that will work inside two power stations
generating a total of nearly 1.5 GW. But the deal
also includes 34 advanced “aero-derivative”
turbines that can be quickly deployed pretty much
anywhere there is a supply of natural gas.
The first installation
of mobile gas genera-
tion units in Egypt...
Success Stories
ENERGYPT 201620

“600 MVA
delivered
by the first
Aero Engine
Generator in
Egypt”
ENERGYPT 2016 21

The Egyptian Ministry of Electricity and Renewable En-
ergy has opened a new power station in El Ain El Sokhna,
adding 1,300 MW to the country’s electricity grid at a cost
of EGP 9.6 bn ($1.3 bn) in 2015.
The new power plant and other projects should contribute
3,632 additional MW to the national grid. This power plant
comes as part of a five-year plan (2012 – 2017) to meet the
demand of electricity in the country. The project was funded
by international organizations, with contributions from the
World Bank, the African Development Bank, the Arab Fund for
Ecoxnomic and Social Development and state-run electricity
company East Delta.
El Ain
El Sohkna
Power Plant
+1,300 MW
TO THE COUNTRY’S
ELECTRICITY GRID”
Success Stories
ENERGYPT 201622

T
his project has started as a sub-critical power
plant and transformed to a super critical
power plant after the approval of all authori-
ties including funders.
This transforming was done to improve its efficiency and
to obtain a better fuel consumption rates.
The funding was arranged through Arab and international
loans. The project was divided into 17 packages.
The facility will be constructed on an existing power
plant, which contains other 2 steam turbines operating.
The site is approximately 78,000 m2 in size it is located in
the vicinity of Assiut city, approximately 375 Km South.
The principal objective of the project is to provide
energy with a reasonable price for the investment sec-
tor (industrial, agricultural or commercial) as well as the
household sector. This objective is in line with the Ministry
of Electricity and Renewable Energy policy of providing
electrical energy to all consumers in Egypt.
The Ministry of Electricity and Renew-
able Energy has awarded Orascom
Construction (OC) the implementation
of the power plant in the Upper Egyptian
governorate Assiut, which has complet-
ed the first phase adding capacity of
375 megawatts (MW) to the nationwide
electricity network in 2015.
Improving efficiency and obtaining
a better fuel consumption rates...
Assiut Power Plant
Success Stories
ENERGYPT 2016 23

The strategic insight in the field of electricity transmission is based
on developing, enhancing and increasing the efficiency of this
paradigm in order to match the sector’s ambitious plan to acquire
the optimal mix of electricity producing sources (hydro, thermal,
wind, solar, coal, and nuclear). This will encourage the private
sector to invest in the field of electricity, by seeking contracts for
the purchase of electricity. With respect to enhancing perfor-
mance in the electricity sector, and the gradual shift to create a
competitive market, the strategy is based on two parallel tracks:
1. Regulating the electricity market. Electricity bought from
different producers will be provided to distributors and major
consumers on the basis of bilateral contracts.
2. Creating a competitive market. Consumers will have the
freedom of an electricity provider of their choice, with the
Egyptian Electricity Company handling transmission, at a fee,
for the use of the grid.
The Egyptian Electricity Company has worked hard to implement
this strategy. It laid a number of plans to provide the required
needs for transmission grids. The grid has been supported with
new lines, old ones replaced, and lines extended along new
routes to avoid blockage, improve grid capacity and stabilize
voltage. New regional control centers have been added, current
centers updated to control the grid in real time, reduce power fail-
ure, stabilize the grid and activate the role of information centers
in the governorates to ensure cables are not damaged, connec-
tion to the grid is maintained and study the use of multi-cycle
towers to overcome the problem of routes and objections raised
by the public.
Important achievements of the Egyptian Electricity
Company in transmitting electricity in 2015:
• Maintaining a constant load in the summer of 2015 (29500 MV).
• Preparing for the summer of 2016 by reinforcing the unified
electricity transmission grid. First and second stages of grid
support projects are on the way.
• Transformer stations related projects (high and very high - re-
placement and renewal).
• A number of plants and transformer stations, with a total ca-
pacity of 5001 MVA.
• Extra high voltage (total added capacity of 395307 MVA).
• Five transformer stations have been constructed, with a total
capacity of 835 MVA.
• Lines and cables (402.5 Km).
• Horizontal expansion (18 plants, with a total capacity of 2750
MVA).
• Eleven plants were replaced, with a total capacity of 368.7
MVA.
• High voltage (total capacity added 1048.2 MVA)
• Seven transformer stations were constructed, with a total
capacity of 286.2 MVA.
• Lines and cables (85.5 Km).
• Horizontal expansion (12 plants, with a total capacity of 292.5
MVA).
• Thirty six plants were replaced, with a total capacity of 469.5
MVA.
• Attracting investment and encouraging investors to venture into
the electricity sector. A clear evidence of this is the feed tariff
projects which attracted a large number of investors (about
189) worldwide.
• International connection of the grid and Egypt’s role a as a con-
necting hub between the East and the West and Sub-Saharan
Africa. One of the major connection projects being completed
is that between Egypt and Saudi Arabia.
Electricity Transmission
developing, enhancing and increasing the efficiency
Total investment Extra high voltage transformer stations LE671 million
Total investment Extra high voltage lines and cables LE1229 million
Total investment High voltage transformer stations LE369 million
Total investment High voltage lines and cables LE550 million
Electricity transmission grids are the corner stone of the
electricity sector. They play a major role in operating the
electricity production paradigm according to sound eco-
nomic standards that achieve efficiency, stability and reliabil-
ity enough to meet the requirements and needs of present
and future demand on electric power.
Success Stories
ENERGYPT 201624

Egypt is a key strategic player in connecting the
electricity network of all Arab and African countries
Egypt
ENERGYPT 2016 25

Dr. Mohamed Shaker, Egypt’s Minister of Electricity and
Renewable Energy and Dr. Sultan Bin Ahmed Sultan Al
Jaber, UAE Minister of State have inaugurated the 10
MW Siwa solar power plant in Matrouh in 2015.
The Siwa solar plant is the first in a series of Egyptian solar
energy projects to be delivered by Masdar, Abu Dhabi’s
renewable energy company, under an agreement between
the United Arab Emirates and the Egyptian government. It
accounts for 30% of the grid capacity of Siwa City and its
adjacent areas. The solar plant will help alleviate energy short-
ages throughout the Matrouh region.
The Siwa solar plant will supply 17,551 MW/h of power an-
nually, saving five million litres of diesel fuel per year. The plant
consists of 74,640 micromorph thin-film panels and supplies
clean, safe and secure electricity to over 6,000 homes in Siwa
City and nearby places.
The plant will also reduce Egypt’s carbon footprint by more
than 14,000 tons of Carbon Dioxide (CO2) each year.
Siwa Solar PV Plant
The first project to add 30% of the grid
capacity in Siwa and adjacent areas
Success Stories
“Egypt’s reduce its car-
bon footprint by more
than 14,000 tons of
Carbon Di-oxide (CO2)
each year.”
Element Configuration
Peak power 10 M.W
Actual power 3.8 M.W
Annual yield 17551 M.W/h.Yearly
System Hybrid
Type Thin Film
Modules Masdar PV
Origin Germany
No. of modules 74740 Panels
Module peak power
55000 Panels 19740 Panels
100 Watt 137 Watt
String no. of modules 60 Panels
No. of Strings 1246
Inverter HYBRID Inverter
Inverter type SMA
Origin Germany
Peak power 7 KW
No. of inverters 1246 Inverter
Actual power 2 KW
Data Acquisition SCADA SYSTEM INCLUDED
Metrological Data WEATHER STATION INCLUDED
ENERGYPT 201626

The Ministry of Electricity and Energy has set a
goal of supplying 20 % of electric energy demand
in Egypt through renewable energy resources by the
year 2020.
The project is part of the Egyptian government’s plans to
boost clean energy projects that can control fuel shortages
and diversify energy sources.
Egypt’s Electricity and Renewable Energy Ministry has
inaugurated a 200 MW wind farm in Gabal el Zeit, Red Sea
governorate. The project was realized over a period of 30
months at a total cost of EUR 270 million (USD 275.8m).
It was financed by the German government, through KfW
Development Bank, as well as the European Commission and
the European Investment Bank (EIB).
The wind farm consists of 100 pieces of 2 MW turbines
that have the combined capacity to generate up to 800 GWh
of electricity per year. This would cover the annual power
needs of about 500,000 people. Additionally, it can also
contribute to preventing the emission of nearly 400,000 tons
of carbon dioxide per year. Overall wind capacity of Egypt will
increase by 35 % through the project.
Boosting clean energy and preventing the
emission of 400,000 tons of carbon dioxide
200 MW Wind Farm
in Gabal El-Zeit
Success Stories
ENERGYPT 2016 27

The threat of global warming along with the high fuel consumption has raised
more awareness on looking for different energy sources. Thus, investments
in renewable energy projects has been rising since 2005 according to the
2011 REN21 Renewables Global Status Report (GSR) which is an annual
publication issued by REN21 (an organization promoting policies to acceler-
ate the global transition to renewable energy).
20% of Egypt’s energy
needs from renewable
sources by the year 2020
The Clean Energy Revolution
Egypt has been overlooking the develop-
ment of renewable energy and implementing
new supply strategies. In February, 2008 the
country’s Supreme Council of Energy (SCE)
approved a national strategy to supply 20% of
Egypt’s energy needs from renewable sources
by year 2020. Back in 2008, the total renew-
able energy production accounted 12% of total
supply; meanwhile in 2010, the installed wind
capacity reached 550 MW bringing the total
installed renewable energy capacities to 3.35
GW. Still the government needs to install more
renewable energy capacities in order to achieve
its target which can be attained through more
research and advanced technology.
Business in Depth
ENERGYPT 201628

E
gypt began to generate electricity
from its first v facility in the mid of
2011 at the Kuraymat Solar Island
with a total capacity of 20 MW located
around 100 Km South. The facility is a
hybrid of CSP/combined cycle power Plant.
The technology used is all foreign through
the German Falgsol, it’s a high-quality
parabolic trough mirrors that focuses sun
radiation on a special pipe that has a ther-
mal collector in it. The island is divided into
zones with rows or parabolic mirrors that
rotate in the direction of the sun.
In the near future other successful examples
will follow especially in wide desert spaces,
but the major barrier facing this technology’s
expansion is the cost. The investment costs are
huge compared to conventional power plants;
however there are still huge interests in develop-
ing these types of power plants in areas that
have extremely high solar radiation.
The cost of producing a Kilowatt per hour from
CSP is much higher than that of fossil fuels,
and the fact that electricity is usually subsidized
makes it harder for the private sector to interfere
and compete in this industry. Hence, in order for
people to buy CSP electricity, it has to be on the
same price scale of the subsidized one.
If Egypt stressed on attaining the latest tech-
nology and offered the CSP electricity in a
moderate price compared with the subsidized
electricity, the future of renewable energy will be
booming in the very near future and we will be
able to attain out 2020 target and even more.
ENERGYPT 2016 29

Hydro
Hydroelectric power is the most common type of
renewable energy. Supply was over 16% of the
global energy demand or equivalent to more than
3,000 terawatt hours (TWh) in 2010. Through
the gravitational force of falling or flowing water,
dams can harness this force to power turbines
and produce electricity. The biggest hydroelectric
plants can generate over 10 GW of power such as
the Three Gorges Dam in China. Dams however
can have a severe environmental impact especially
with regards to marine life in the rivers where they
are built.
Wind
Wind-powered turbines function by utilizing natural
winds to rotate either single, double or triple blade
fans that in return rotate a turbine which produces
electricity. Over the past 10 years, as wind farms
have spread around the world, the cost of gener-
ating electricity from wind has fallen dramatically.
With improved efficiency of used turbines as well
as a rotor diameter sometimes reaching 125 me-
ters in 1970s, the cost per KWh could sometimes
be as low as $0.06 to $0.09 (EGP 0.36 to EGP
0.54). Wind farms have an annual growth rate of
30% reaching a total installed capacity of 198 GW
worldwide in 2010.
Solar Photovoltaic
Solar Photovoltaic (PV) systems work by directly
converting sunlight into electrical current. PV
panels are made up of an assembly of PV cells – a
silicon-based semi-contractor material – and is
connected to an array of components such as in-
verters, batteries and mounting systems. Module
can vary in size and electricity output ranging from
a few watts to tens of megawatts.
As with wind power, technological developments
have reduced costs considerably over the last few
years. However, large-scale electricity production
using solar PVs costs around USD 0.22 (EGP
1.33) per KWh, significantly more expensive than
its fossil fuel competitors and nuclear energy
which are in the vicinity of USD 0.04-0.05 (EGP
0.24-0.30) per KWh. Solar PV systems are most
suitable for use in remote locations such as com-
munication towers and lamp posts.
Concentrated Solar Power
Concentrated solar power (CSP) systems can
either be in the form of mirrors on a parabolic
trough, parabolic disk system or be in a form of
power tower. Essentially the mirrors are used to
focus solar radiation into pipes of fluid or oil caus-
ing it to heat up. Water is then boiled using the
heated fluid to produce steam which powers a
turbine. Depending on weather conditions, costs
per KWh from CSP can range from USD 0.09-
0.15 (EGP 0.54-0.91). In the period from 2007 to
2010 there was 740 MW of added CSP capacity
worldwide with half of the figure installed in 2010.
CSP is recording very rapid growth especially
in areas with clear skies and strong sunlight as
Southern Spain, Middle East and North Africa.
Biomass
Biomass is basically plant material that is used
as a fuel. Plants capture the energy from the sun
through photosynthesis, when burnt they release
this energy and therefore act as natural batteries
of solar energy. As of 2010 there was an estimat-
ed 62 GW of installed biomass power capacity.
Different Types of Renewable Energies
ENERGYPT 201630

Egypt is witnessing an ongoing improvement in its electri-
cal infrastructure, particularly in relation to the installment
of smart meters. Users are very satisfied by this change as
smart meters have much more benefits over old ones.
New benefits
Smart meters enable clients to know their actual consumption
consume. The screen shows realistic information on the amount
of energy consumption.
Smart meter technology
Smart meters measure and record the amount of electricity con-
sumed at different times of the day and the week. Meters come
in different models, however, their main functions are the same.
Conveying accurate information to clients
In the near future, families and companies will be able to use
electronic portals or home display equipment connected to their
smart meters to access accurate and more detailed informa-
tion regarding their consumption of electricity. This information
will help consumers find means to save electricity and compare
prices in order to opt for the best plans being offered by compet-
ing service providers.
Determining malfunctions
and restoring the power
The smart meter can notify the company of your power failure in
real time.
Such notification can accelerate power resumption as it enables
the immediate determination of the problem. Prioritization of
problems and referral to repair teams will ensure timely repair.
Communication with subscribers
Smart meters provide communication channels between power
distribution companies and their clients, particularly at peak time
and at times of grid overload. This offers better grid control and
load reduction and prevents power failure.
The Unknown Benefits of Prepaid
Smart Electricity Meters
The new meter enables the subscriber to monitor their consumption
and rationalize it. The screen shows their remaining credit in KW/h
and in pounds, along with the number of days remaining in credit.
The power is not cut between 5 pm and 10 am of the following
day, even if the credit is used up.
An indicator lamp on the face of the meter lights up when credit
is down to 25% of its value. It lights up again when credit is down
to 10% so that the client can recharge before they run out of
credit.
Subscribers will continue to follow the same consumer rates and
bands currently under application, with no increase in price in
case of using the smart meter (yearly approved cabinet prices).
The subscriber can determine the amount of electricity they wish
to pay for, according to their ability, when charging at the nearest
company center.
The subscriber can recharge their card anytime at the specified
charging centers, without having to wait for it to expire. In that
case, any addition to the card is cumulative.
The card required for the meter is a one-time buy. It can be
charged with sums ranging from EGP 10 to EGP 10,000.
Credit is given in KW/h and in pounds. There is also the possibil-
ity of knowing the rate applied.
In case of exceeding the load permitted by the meter, an alarm
will sound, then the power will be disconnected. The power will
then resume after few minutes. If this happens three consecutive
times, power will be turned off completely.
The meter’s battery has a life expectancy of 10 years. It is used to
light the screen at the time of power failure.
Force-opening the meter disconnects the power. Only the com-
pany can reconnect it in this case.
The meter is tamper-proved. In case of any bypasses, entry and
exit values are compared and the higher of them is relied upon.
In case of losing the card the company can reload the meter data
onto a new card at the expense of the subscriber.
“30 Million Smart Meters
to Be Installed Within the
Next 10 Years”
The Ministry of Electricity
and Renewable Energy:
Business in Depth
ENERGYPT 2016 31

“Improving Energy Efficiency of Lighting and Household Appli-
ances” Project is a good example of fruitful cooperation between
the Ministry of Electricity, Renewable Energy, Global environmen-
tal facility (GEF) and the United Nations Development Program
(UNDP) regarding energy efficiency in different sectors.
First phase of the Project (1999-2010) was entitled “Energy Ef-
ficiency (E.E.) and Reducing Greenhouse Emissions” & Second
phase of the Project (2011-2017) is entitled “Improving Energy
Efficiency of Lighting and Household Appliances”
The first phase of the E.E. project was focused on minimizing
the loss of transmission network from 7% to 3.68% at the end
of this phase.Improving the dynamic performance of generating
and tuning these units using AGC system to fix the frequency and
improving the control system by reaching the maximum specifica-
tion in ramp rate of the units 150 MW capacity and more.
Producing the labeling system for the new purchased appliances
as for the existed EE can be obtained through energy tips for the
end user, also establishing the E.E. testing lab system for home
appliances. The most energy labels are for refrigerator, freezer,
automatic washing machine ,HVAC (different types ) and photo
matric labs of efficient lighting system.
The goal of the project in the second phase is to change the ap-
proach in the market to use energy-efficient appliances whether
in terms of highly-efficient lights or household electric appliances.
Household appliances should be highly efficient in accordance
with energy efficiency standards. Gradually, low-efficient appli-
ances will be withdrawn from the market in addition to introduc-
ing efficient lighting in industrial sector. Also Producing E.E codes
for new building in Residential ,Commercial & Governmental
buildings.
This will be achieved through the combination of regulatory
tools such as minimum energy performance standards (MEPS),
information labels, enhanced public awareness, capacity building
and attractive financing mechanisms. The project will strengthen
the regulatory and institutional framework, develop monitor-
ing and enforcement mechanisms, provide training to public
authorities and other relevant stakeholders. It will explore and test
different financial incentives complemented by extensive public
outreach campaigns.
ENERGY EFFICIENCY
IMPROVEMENT PROGRAM
Business in Depth
ENERGYPT 201632

The project has implemented more than 17 energy efficiency
lighting pilot projects supported by technical assistance (audit,
techno economic feasibility study, specifications, list of quali-
fied suppliers published also on the web site, preparation of
tender documents), projects were implemented in different
types of buildings including governmental buildings, administra-
tion building, bank, hotels, libraries, street lighting of residential
compounds, retail shops, supermarkets etc. Some of project’s
beneficiaries have decided to replicate the projects in their facili-
ties mainly the CIB bank, Marriott hotels and the New Urban
Communities Authority of the Ministry of Housing.
The project supported the Egyptian Organization for Standards
(EOS) to develop specifications for different types of LED lighting
lamps. The National Consulting Firm was contracted to evalu-
ate the street lighting situation in Egypt, assess the situation and
evaluate achievements and draw backs of the energy efficiency
implemented street lighting project.
The project was launched in Summer 2014 after a public awear-
ness campaign aiming to raise awearness of the importance of
energy efficiency.
The volunteers working in the campaign were divided into
several groups in Cairo and Giza. They targeted malls, sports
clubs and shops. They discussed with business owners how to
optimize the use of energy and all necessary steps to do so.
At the same time a social media campaign was lunched to raise
awearness about using energy is the most efficient ways and
highlighting the benefits of efficient use , which are:
• Reduce the electricity bill value.
• Avoid power cuts during peak times (where the energy con-
sumption is high).
• Reduce emissions and protects environment and public health.
Real energy efficiency isn’t
about using less power - it’s
about using it better.”
ENERGYPT 2016 33

History
The intention to build a nuclear power plant in Egypt was set
in motion five decades ago during the era of former President
Gamal Abd El-Nasser and Russia was involved only back then it
was known as the Soviet Union.
The first milestone in the Egyptian nuclear program history oc-
curred in 1955, shortly after Abd El Nasser came to power, with
the establishment of the Atomic Energy Committee. Following, in
1957, the Atomic Energy Authority was also established.
Egypt signed a deal with the Soviet Union during that time to
cooperate in the field of peaceful nuclear power usage and in the
early 1960s, serious steps were taken to start the establishment
of the first Egyptian nuclear power plant and the area of Sidi Krir
was chosen to be the destined location.
The 1967 setback stopped the ambitious nuclear program
before it saw the light, as the whole country directed its resources
towards the goal of getting Sinai back from Israel. After regaining
Sinai in 1973, the program started to come back to life and in
1977 the Nuclear Materials Authority was established and shortly
in 1980 El-Dabaa was chosen to be the site of the first Egyptian
nuclear power plant, a choice confirmed 35 years later. During
El-Sadat’s regime in the 1980’s, Egypt agreed with France to
establish a nuclear plant but the project was dismissed after the
Chernobyl disaster.
The project was back by president El Sisi due to the several
challenges the electricity sector is facing and the unprecedented
increase of consumption rates because of population growth,
limited sources of fuel and its price increase. The challenges also
include the difficulty of managing the necessary funds and the
lack of funding new projects in streamlining and improving energy
efficiency. The government is seeking to achieve high rates of
economic growth, which requires the provision of more energy
sources.
President El Sisi said in a statement following the signing of
El-Dabaa nuclear station agreement that establishing El-Dabaa
nuclear station for peaceful uses is hopeful and a message for
Egypt and marks the confirmation of the and strategic relations
between Egypt and Russia.
The project in cooperation
with Russia
The Egyptian organization for nuclear plants and Russia’s atomic
energy agency signed an agreement for El-Dabaa nuclear plant,
adding that this project will help Egypt solve its lack of energy
sources.
Egypt to Generate
Nuclear Electricity
for the first time...
El Dabaa Nuclear
Power Plant..
a dream coming true…
From A Dream To Reality !
El Dabaa Nuclear Power Plant
Business in Depth
ENERGYPT 201634

Moscow will provide finance for the con-
struction, with repayment coming through
a share of revenues over a 35-year period.
Egypt will pay for the power plant from
“the actual production of electricity” from
this plant, President Abdel Fattah El Sisi
said at a press conference following the
signing ceremony.
El Sisi then described the Russian
proposal as the “fastest” and “best” on
the table. He stressed that the nuclear
program will be used for peaceful power
generation purposes.
The plan
The Dabaa nuclear power plant will
consist of 4 nuclear reactors, each of
them with the capacity of 1200 MW (Total
4800 MW). The first two are expected to
be finished by 2022, Daily News Egypt
reported. The plant is to be constructed
via the Russian stateowned nuclear firm,
Rosatom.
Minister of Electricity Dr. Mohammed
Shaker revealed the ministry’s plans to
meet the energy shortage crisis, reduce
waste, secure supplies and rationalize
consumption. El-Dabaa nuclear power
plant and means of access to nuclear fuel
and securing its disposal has become a
priority file for the government. He added
that the increased cost of renewable ener-
gies forced us to find a balanced mix of
energy between the traditional with coal,
the renewable with hydro, solar, wind,
subsoil, wastes and nuclear.
Contrary to popular belief, solar energy is
rather expensive and using nuclear energy
instead will be significantly lower in cost.
The nuclear reactors will be preserved in a
building with 1.2 meter thickness to pre-
vent any leaked radiation. This project will
generate new work opportunities and will
increase tourism which is what happened
when the High Dam in Aswan was built.
The Safety
This power plant has no damage what
so ever and its establishment is cur-
rently quite important. The non-renewable
resources we are relying on now are caus-
ing damage to the environment
because coal and petrol energy
release carbon dioxide in huge
amounts.
Coal, petrol and natural gas leaks
are a major threat to the environ-
ment, he said but uranium, which
is used in nuclear plants, is safe,
clean, abundant and its usage
has no side effects. There are
too many concerns regarding the
establishment of a nuclear plant in
Egypt but surely the nuclear plant
will be 100% safe because it is a
“third-generation” nuclear plant.
Unlike the nuclear plants es-
tablished in the 1980’s when the Chernob-
yl disaster happened which were ‘second
generation’ plants our nuclear plant will be
a third generation plant, the safest in its
class. It is unlikely for any nuclear explo-
sions to occur because the reactor will
abort itself in case of any danger.
Egypt’s strategy for the management of
nuclear fuel of high radiation includes two
aspects; the temporary storage and await-
ing the examination of all technical and
economic considerations associated with
the subsequent stage. The nuclear fuel
is then stored gradually in water basins
to alleviate radiation of the fuel as well
as providing suitable means for cooling
so that the heat emitted from it could be
extracted on an ongoing basis.
“El-Dabaa nucle-
ar power plant
and means of
access to nuclear
fuel and securing
its disposal has
become a prior-
ity file for the
government.”
ENERGYPT 2016 35

Afterwards, the fuel is transferred, in accordance with the gen-
eral policy of the state for reprocessing and separation of some
fission products useful for medical, agricultural and industrial
uses.
The disposal of radioactive waste results from scrapping the
power plant when the operational life of the plant ends or in case
of accidents. This is according to the plan submitted by the main
contractor of the project.
This is why they must be reviewed during scrapping operation
plans and updated regularly according to the technological devel-
opment in this regard.
The strategy for guaranteeing secure supply of nuclear fuel and
waste disposal is based on the conclusion of multiple long-term
contracts with more than one supplier to ensure the supply of
materials and services.
At the beginning of implementation of the Egyptian nuclear pro-
gram, the supplier company will be obliged to provide the neces-
sary nuclear fuel for the operation of nuclear reactor for a period
ranging between five and ten years.
A strategic stockpile of fuel will be provided to ensure its avail-
ability if the supply from abroad was interrupted for any reason.
There will also be special facilities for storing nuclear fuel. It will be
emphasized on in the contracts to be signed with the company
that will implement the project.
The procedure for dealing with wastes will be very profes-
sional; Disposal of low and medium-level radioactive wastes will
be done by processing the power plant with modern and so-
phisticated technologies supplied by the main contractor for the
nuclear power plant project. The contractor, the Russian corpora-
tion Rosatom, handles equipping a cell at the fuel basin to secure
the processing hardware and contaminated equipment.
There will also be an accurate system of operations associ-
ated with the management of radioactive wastes – assembly,
classification, transport and storage also and keeping these
operations under constant monitoring, verification and audit. This
will be through the establishment of an accounting system for all
sorts of radioactive waste resulting from operation.
The establishment of a nuclear power plant requires the
availability of an efficient electricity network to begin commercial
operation for a nuclear plant which is significant for the high elec-
trical capacities generated from the plants.
The nuclear program requires highly trained human cadres on all
project levels starting with choosing the site until operating it.
Environment protection
There are many benefits from the nuclear reactor because
it will generate the needed energy for Suez Canal and
help turn salt water into fresh water, which will diminish
the problem of lack of water from Alexandria to Marsa
Matruh.
Anything man made will definitely have side effects; nev-
ertheless the entire world’s energy is operated by nuclear
power. These side effects can be radiation emitted from
the units of the nuclear plants but these emissions have
to be reported immediately and negligence should not be
tolerated.
Nuclear plants’ projects depend on communication
between the project’s parties and the beneficiaries to
ensure the best performance in planed times. Therefore
the IAEA requires participating with the participation of all
the project stakeholders.
There are also terms to provide the highest levels of
environment protection surrounding the plant’s site and to
elaborate an emergency plan. These terms are essential
parts of the infrastructure to stress on the procedures fol-
lowed during emergency and to be prepared for it.
Business in Depth
ENERGYPT 201636

In order to diversify Egypt energy mix, which for decades relied
on natural gas and liquid fossil fuel, the Ministry of Electricity and
Renewable Energy has established one of the most aggressive
and well-planned coal fired power programs. The program relies
on two different commercial schemes:
1. IPP scheme, under which two coal fired power plants are
under development with major developers in Aioun Moussa-
South Sinani and Elhamraween-Red Sea, with total target
capacity in excess of 6,000 MW.
I
n April 2014 Egyptian laws
were adjusted to allow and
regulate the use of coal in
factories - particularly in the
cement and iron industry -
and power plants.
The Egyptian Government
adopting an Aggressive
Coal-Fired Power
Program...
ENERGYPT 2016 37

2. EPC+Finance scheme, under which two coal fired power
plants have been awarded to Chinese contractors with a total
capacity of 8,000 MW in two phases, each of 4,000 MW in
Elhamraween-Red Sea. In parallel, in West Mattrouh on the
Mediterranean, a coal power complex is under development
with major developers from Japan and Korea in partnership
with Elsewedy Electric, with total target capacity of 8,000 MW
in multiple phases.
The first coal fired power plant is expected to be connected to
the grid by 2022. EGYPT has recently released environmental
regulations to set the guidelines for Clean Coal Power.
During Egypt Economic Development Conference in March
2015, further steps towards coal were taken. A memorandum of
understanding was signed with Saudi company ACWA Power
to develop a 2,000 MW coal-fired power plant, at an invest-
ment cost of $7b, and with possibilities to extend to 4,000 MW.
Another memorandum was signed with Tharwat Investments, to
build a 6,000 MW coal-fired power plant at a cost of $11bn.
The path towards coal was confirmed in May 2015, when an
official quoted by online news outlet Mada Masr saying that Egypt
plans to rely on coal for 25%-30% of its electricity in 2030. The
capacity that needs to be installed for this would amount to at
least 15,000 MW, taken into account government plans to double
total generation capacity to about 60,000 MW by 2020.
Energy deficit forcing into the
Usage Of Coal Energy..
Reasons for Egypt to turn to coal are not difficult to find. In the
post-revolution years the country has struggled with large energy
deficits, especially in the hot summer months when energy de-
mands rise due to AC use, leading to frequent power cuts.
A shortage of gas to fuel power plants, exaggerated with old
plants with a low efficiency, was the main cause of the deficit.
In Summer 2015, the power cuts occurred much
less but that was due to the governmental
cutting gas supplies to factories.
A factor that compounded the problem was Egypt’s population,
hence its energy demand, has increased sharply over the past
five years and is projected to rise even further. According to esti-
mates the population of now 90 million will hit 117 million in 2030;
therefore, to provide for its citizens and keep its factories running,
Egypt needs a significant amount of energy urgently.
Coal can provide this energy and its great benefit over gas and
other resources is its low price. 1 mmbtu produced by coal costs
$2.06; for natural gas that stands on around $2.24 however, the
gap has been rapidly declining over the past year.
Also, with the newest discovery of a “super giant” gas field in
Egypt’s Mediterranean by the Italian company ENI, it remains a
question if coal is actually the fuel of the future for Egypt. Never-
theless, the government plans to import 30m tons of coal yearly
to fuel its planned power plants.
Environmental Concerns
by the Government…
The main concern for Egypt’s coal plans is not its cost; it is the
environment. Since the government changed regulations to favor
coal use, environmental groups, with the Minster of Environment
Leila Iskander, have opposed coal.
The Egyptian Initiative for Personal Rights released a state-
ment in May 2015 stressing on the environment and health
complications of using coal. A report was done by several NGOs
and the Ministry of Environment estimated the additional health
costs of using coal in cement factories by $3.9b annually and for
using coal for electricity by $5.9 b annually.
Following the criticism, Egypt has ad-
opted regulations for coal use
to protect the envi-
ronment.
Egypt simply cannot afford to not use coal, if
it wants to pursue its path towards industrial
development and keep up with increasing en-
ergy demands of its growing population.”
Business in Depth
ENERGYPT 201638

Moving forward with Coal Energy…
Despite these concerns, the government seems determined to
move forward with coal. Minister of Environment Khaled Fahmy,
speaking on the Egypt Coal conference in May, said turning to
coal is an “inevitable decision” while stressing the strict environ-
ment regulations in place or in the words of former Petroleum
Minister, Osama Kamal: “We don’t have the luxury of choice.”
These statements echo the main argument for coal: Egypt
simply cannot afford to not use it, if it wants to pursue its path to-
wards industrial development and keep up with increasing energy
demands of its growing population.
Egypt is not alone in this; other emerging economies such as
China and India have also turned to coal as a cheap energy
resource. At the Paris climate summit Indian Minister of Coal and
Energy, Piyush Goyal, put it clearly: “We are not ashamed of us-
ing coal”. The US and the West have developed
themselves for 150 years based on
cheap energy from coal.”
Coal-Fired Power Generation Process
We are not
ashamed of using
coal. The US and
the West have de-
veloped themselves
for 150 years based
on cheap energy
from coal.”
“Turning to coal
is an inevitable
decision”
ENERGYPT 2016 39

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