sustainable Energy Deployment in
Egypt
Ministry of Electricity and Renewable Energy
Eng. Ahmed MohinaUndersecretary for Authorities follow up
9/11/2017
contentsWherewewanttobe?.
Wherearewenow?.
Whatisthegap?.
Whatarewedoingtobethere?.
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Sustainable Development Strategy: Egypt vision 2030
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2030forenergytoStrategicvision
An energy sector meeting national sustainable developmentrequirements and maximizing the efficient use of various resourcescontributing to economic growth, competitiveness, achieving social
justice, and preserving the environment. A renewableenergy and efficient resource managementleader,and an innovative sector capable of forecasting andadapting to local, regional, and international developments andcomplying with SDGs.
Thereiscoherentamongthestrategicvisionforenergy2030
andUNSDGs.
Utilizationofallavailableresources.
Promotingutilizationofrenewableenergy.
Promotingelectricityinterconnection.
ImprovingenergyEfficiencythroughadoptingEnergyEfficiencystrategies.
Environmentconservationbyadoptingnecessarymeasuresonthesupplyside.
Futureplanningtofacetheincreasingdemand.
Energy Strategy until 2035§ A new strategy of electricity Sector was updated in
cooperation with EU in the framework of Energy Sector Policy Support Program (ESPSP) up to 2035 to ensure diversify of energy mix from all resources (Wind – Solar PV – Solar CSP - Coal – Nuclear – oil & gas).
§ In this strategy, all energy scenarios in Egypt has been studied by focusing on renewable energies and Energy Efficiency.
Energy Strategy until 2035§ In 18/10/2016 The supreme council chose the optimal scenario
for Egypt.
§ Now we are updating the strategy according to the newvariables such as fuel prices, floating exchange rate anddecaying of new technologies cost. A new optimal scenarioachievestherequiredenergybalanceincluding42%RenewableEnergy share till 2035, taking into consideration energy efficiency measures with the target of 18 %.
Electricity production by plant type in the Updated Optimal Scenario until 2035
No. of Consumers (million)
Electricity Share per Capita (kwh)
Max Load (MW)
2017
32.8
1950
30800
Installed Capacity (MW) 45192
Egyptian ElectricityHolding Company
Nuclear Materials Authority
Atomic Energy
Authority
Nuclear Power Plants
Authority
Ministry of Electricity & Renewable Energy
Hydro Power Plants Executive
Authority
New and Renewable
Energy Authority
Distribution Companies
Electricity Generation Companies
Egyptian Electricity Transmission
Company North Cairo
Alexandria
El Beheira
North Delta
South Delta
Canal
Mid. Egypt
West Delta
Cairo
East Delta
Hydro Power Plants
South Cairo
Upper Egypt
Upper Egypt
Middle Delta
Activities in RE Fields (Hydro – Wind - Solar)
Hydro Energy
Wind Energy
Solar Energy
Installed capacity from hydro is 2843 MW Hydro power represents 7 % from the generated electrical energy.
Currently, Assuit Hydro Power Project with 32 MW is under implementation and it is planned to be operated by 2018
It’s planned to establish pumping & storage plant up to 2400 MW in Attaqa - Suez to be operated by 2022
A study has been conducted to choose the most suitable locations for Pumping & Storage plants.
Average wind speed reaches: 10.5 m/sec at 50 m height.
Average wind speed reaches: 7.5 m/s at 80 m height.
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High Resources Wind Atlas of Egypt 1996, 2003 & 2005
Potential Capacities:More than 30000 MW Produced Power
Installed Wind Farms
Installed capacity : 750 MW
Generated Energy 12.6 Billion KWh
fuel savings 2.7 mteo
CO2 reductions 6.8 million ton
Direct solar radiation ranging: 2000 – 3200 kWh/m2/year
Sun shine duration: 9-11 h/day
HighResourcesSolarAtlasofEgypt
Potential Capacities:More than 50000 MW Produced Power
140 MW Solar thermalpower plant at kuraymat§The 1st CSP plant is 140MW including solar fieldof 20 MW§The project startedoperation commercially inJuly 2011.
Solar Thermal Electricity Generation
Solar Photovoltaic Systems
TheTotalInstalledCapacityofPVSystemsismorethan80MWfordifferentpurposes(remoteareas,governmentalbuildings,….).
TheCabinethasapproveddecreetodisseminatetheuseofPVin
1000governmental
building.
theGovernoratesCouncilhasapprovedto
utilizetheSolarEnergyinstreets
andpublicbuildingslighting.
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EvolutionofLegislationMarch2014
• Amendmentthenameofministry ofElectricity&EnergytobeMinistryofElectricityandRenewableEnergy.
July2014 • Atariffreformprogramwasadoptedandannouncesforeightyearsupto2022.Consequently,thepriceoftheelectricitygeneratedfromrenewableenergywillbeincreasedannuallywiththesamerate.
• Renewableenergywillbenefitfromit,astherightpricesignalisbecomingavailable.
Sep.2014 • TheCabinethasapprovedtheFeed-inTariffsystemforelectricityprojectsproducedfromREresources(PV&wind).
Oct.2014 • Apresidentialdecreehasissuedtomodify(NREA)establishmentlawtoallowittoestablishcompaniesbyitselforinpartnershipwiththePrivatesectortoimplement, operateandmaintainREproject.
Dec.2014 • RElawwasissuedtoencouragegeneratingtheelectricityfromrenewableenergysourcesthrough4developmentschemes.
Sep.2016
• AnewphaseoftheFeed-inTariffsystemforPV&windfarmhasbeenannouncedtobeappliedby28/10/2016.
v Land allocation and permits, (7650 km2 are alreadyallocated)
v Availability of the related information,v Long-term PPA,v Governmental guarantees,v Custom duties are 2%.v The investors will enjoy benefiting from carbon credits.v Environmental Impact Assessment studies and others.
TheEgyptianGovernmentroleinsupportingtherenewableenergyincludes:
Land assigned for renewable
energy, projects
REDevelopmentMechanisms
RenewableEnergyDevelopmentSchemes
CompetitiveBiding
FiTsince2014(4300MW)
Transmissioncompany(BOO)since2009
(1250MW)
New&RenewableEnergyAuthority(NERA)(EPCcontracts)since1999
(3259MW)
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Totalcapacity8809MW
§ In Sep. 2014, The Cabinet has approved the Feed-in Tariffsystem for PV & wind farm with capacity less than 50 M.W.
§ the Regulatory Agency (Egypt ERA) has finalized theregulation rules.
§ FIT aims installing of 2300 MW (PV) (2000 M.W. byinvestors + 300 M.W. for residential rooftop) and 2000MW (wind).
§A central unit for FIT(On stop Shop) has been establishedto provide the necessary support for the investors.
Feed-in Tariff
§ FIT Unit received about 175 offers with about 10500 MWPV and about 3200 MW wind.
§ .9 Companies have submitted their offers in PV .§ 3 Companies had been qualified to implement 3 x 50 MW
PV projects at Benban area.§ 1st Project will start generating electricity on 15 November,
2017.
Feed-in Tariff1st Phase:
§ In Sep. 2016, A new phase of the Feed-in Tariff system forPV & wind farm has been announced to be applied by28/10/2016.
§The financial closure of the project was in October 2017.§By the end of October 2017, 30 Power Purchase Agreement
(PPA) was signed with total capacity of 1365 megawattsSolar project in addition to signing an agreements with twocompanies in a private land allocation with total capacity100 megawatts.
Feed-in Tariff2 Phase :
FiT /kwhrFinancePlant InstalledCapacity
102.88pt.-----Residential
108.58pt.-----NonResidentialLessthan 500KW
7.88$cent70% Foreignfinance30%Localfinance
500KW– 20MW
8.40$cent20MW– 50MW
Contract Period : 25 years
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FiT$cent/kwhrOperationalHours
7.962500
7.652600
7.372700
7.112800
6.862900
6.633000
6.423100
6.223200
6.033300
5.853400
5.693500
5.533600
5.383700
5.243800
5.103900
4.974000
FiT$cent/kwhrOperationalHours
4.854100
4.744200
4.634300
4.524400
4.424500
4.334600
4.234700
4.154800
4.064900
4.00≥ 5000
Contract Period : 20 years
60% Foreign finance40% Local finance
The total capacity of contracted(PV) projects through FITprogram is 1615 megawatts.
Feed-in Tariff
BOO Projects
q Egypt announced 250 MW wind energy project, In Build
Own Operate, BOO, scheme which attracted more than 30
international consortiums.
q Based on FIT experience we got an excellent price, US$
3.82 Cent per kWh, flat rate 20 years.
q The PPA has been signed with the winning consortium
of Toyota Anji and Orascom on 31/10/2017.
Environmental Impacts
vThe expected electricity generation is
around 49 TWh/year by 2022/2023
(including hydro) .
v Fuel Saving about 9.7 million TOE/year .
v CO2 emission reduction 25.3 million
TCO2/year36
Energy Efficiency
On the Supply Side:
ENERGY EFFICIENCY IMPROVEMENT
§ Optimizing the share of the combined cycle power plants.
§ Usage of super critical steam technology.
§ Conversion of old thermal power plants to work in dual firingsystem.
§ Improve power plants efficiency and rehabilitation and renewal oftransmission and distribution networks to reduce fuel consumptionand electrical losses .
§ Modernization of the transmission network to be converted intosmart grid.
On the demand side:
ENERGY EFFICIENCY IMPROVEMENT
In the residential sector
vAround 12 million CFL lamps were distributed with half price and 18 months guarantee.
v Another initiative for distribution 13 millions LED lamps has been announced (until now, more than 11 millions LED lamp have been distributed).
In street lighting sector:
vCurrently, a new project has been set to replace 3.9 million lamps with more efficient ones.(1.4havebeenreplaced)
Other programs:§ Energy conservation measures (mainly efficient
lighting and power factor correction) in manyadministrative buildings.
§ Labeling and standardsprogram for home appliances.
§ Energy efficiency codes forresidential, commercial andpublic buildings. Energy label for refrigerator
Egypt is a Hub for Electrical Interconnection
Gulf ArabCountries
Eastern Arabcountries
Europe
Western Arab countries
African Countries
TurkeySpain
MoroccoTunisia
Algeria
EGYPTLibya
Jordan
SyriaLebanon Iraq
Bahrain
Qatar
Kuwait
Sudan
Oman
Saudi Arabia
EmiratesEthiopia
In operationUnder preparation
120 MW
450 MW
3000 MW
3200 MW
2000 MW200 MW
MOERE established a localization program for Design , Installation and manufacture of Components of electrical equipment . The following are now achieved:
§ 100% of the Transmission Networks up to 220 kVand all Distribution Network components.
§ 42 % of power plants components.§ 30% of the wind energy equipment (70% at the end of 2020).§ The local share in the 1st solar thermal power plant
project is 50%.
Local Manufacturing
§ It's planned to reach 100% of PV components.
§ The ministry of military production is planning to establish a factory afull chain to produce PV cells in Egypt using white sand available inEgypt
§ Egypt has signed an MoU between NREA and Siemens during theEgyptian economic conference (March 2015) to build 2000 M.W. windfarms with EPC+F Scheme, in addition to establish a wind turbineblades factory with annual capacity of 340 M.W. we have received twooffers from Vestas and General Electric with the same approach.
§ There are several opportunities for the private sector to participate inthe local manufacture such as: led lamps, dry transformers, electronicmeters, DC networks, smart grids, wind turbines, CSP, solar heaters.
Local Manufacturing
• Provide 165 million dollar to converge el shabab from gas turbin to
combine cycle (under implementation now with 94% ) .
• Provide 25 million dollar to converge west damiatta from gas turbin
to combine cycle (under implementation now with 95% ) .
• Development of Strategic Environmental and Social Impact
Assessment (SESA), Ornithological Investigation for an Area of 2200
km2 East Of Nile and land demarcation (on going). To establish wind
and solar projects.
• Strategic Environmental and Social Impact Assessment for an Area of
37.5 km2 at Benban (done) To establish solar PV projects.
Cooperation between Egypt and EBRD
EBRD support EGYPT strongly to implement
the FIT program by providing more than 1 billion
dollar in cooperation with Green climate fund
(GCF)(154 million us dollar for private sector to
construct around 750 MW in benban .
Cooperation between Egypt and EBRD
PROPOSED FIELDS FOR COOPORATION :
§ Creation of Energy efficiency market .
§ Smart meters and smart grid .
§ Reinforcement of transmition and distribution grids
§ Development of geothermal energy .
§ Pumping and storage .
Cooperation between Egypt and EBRD
Thank you for your attention