Future of Renewable Energy in Egypt - AmCham …amcham-egypt.org/Presentations/2015/2feb.pdf ·...

Future of Renewable Energy in Egypt

Mohamed Salah ElSobki (Jr) Executive Chairman

New and Renewable Energy Authority (NREA) Ministry of Electricity and Renewable Energy (MoE&RE)

Energy market motivations, challenges

• High energy demand and gross rates

• Limited finance

• Captive market

• Pre mature commercial rules

Monday, February 02, 2015 The Future of Renewable Energy in Egypt

Mohamed Salah ELSOBKI (jr) 2

Expected / Targeted Future Energy Status up 2022 (conservative)

Renewable - current 3000 MW

and target 13500 MW (9%) (2022)

Nuclear up 4000-5000

MW (6%) (2022)

Reduce energy use by 8,3%

(2022)

Retain Oil and NG levels

of production (40%)

(2022)

94% from fossil fuel and NG

5% hydro

1% from wind and others



56 60 6367

7175

8085

9095

101107

113120

127135

0

20

40

60

80

100

120

140

160

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

2021

/22

Millio

n t

oe

From fuel products From N.G. From Hydro

From Wind From Nuclear Local energy needs

Local energy needs w ith energy eff . Additional needed energy

Expected / Targeted Future Energy Status up 2022 (ambitious)

Retain Oil and improve

on NG levels of

production (5%

annually) (61%)

Still need additional energy

to get from else where (15%)



Energy market motivations, challenges, choices and targets.

• High energy demand and gross rates

• Limited finance

• Captive market

• Pre mature commercial rules

• Alternative resources of energy

• Attract finance

• Gradual change to commercial market

• Acceptance of commercial rules.



Electricity in Egypt

Capacity 32GW (2.1 hydro & 0.55 wind)

Secured supply to 99% of the population.

Peak demand at 27,800 MW (Aug 2014), at 7% over the last decade.

For a growth rate between 5% and 7 %, in year 2035

Peak demand: around 70 to 90 GW.

RE: around of 30% up to 45%.



Load curve for August 13, 2014

7

و.م28000

و.م 20297

و.م24575

(و.م)الحمل


Mohamed Salah ELSOBKI (jr)

Actions

Restructuring:

market since 1999 (BOOT, Regulatory)

electricity tariff (2004, 2007, 2014).



2000 2000 1998 1997 1987 1996 2001

Evolution of the Egyptian Electricity Sector

1965 1976

•PECE •EEA

1893 1962 1964

•Private

•Nationalization

•MOEE •7 Discos

•Busi.

Sec.

•Law 100 •BOOT

•Regulatory

•Law 18

•Discos in

Elec.

Sec.

•Law 164 -

EEHC

•Regulatory

•Unbundling



Actions

Restructuring:

market since 1999 (BOOT, Regulatory)

electricity tariff (2004, 2007, 2014).

Diversify of energy generation mix.

Energy Efficiency both on the supply and demand levels.

Develop the national grid.

Develop schemes for promoting RE.



Egypt enjoys excellent wind

regimes, particularly in the

Suez Gulf where the average

wind speed reaches 10.5

m/sec at 50 m height.

The wind energy resource is

available in large regions on

the Nile banks in the Eastern

and Western Deserts where

the average wind speed

reaches 7.5 m/s at 80 m height.



Wind Atlas of Egypt 1996, 2003 & 2005

high intensity of direct

solar radiation ranging

between 2000 – 3200

kWh/m2/year from North to

South.

The sun shine duration

ranges between 9-11

h/day from North to

South, with very few

cloudy days.

Solar Atlas of Egypt

Framework for RE Development Mechanisms

Renewable Energy Development Schemes



Competitive Biding

New& Renewable Energy Authority (NERA)

(EPC contracts) since 1999 750 MW 1900 MW

End

users

RE sources by NREA

EPC

Under payment

Energy

مناقصات تنافسية على مستوى ااألنتاجCompetitive biding on the supply side



Prevailing tariffs

(subsidized)

Energy

200 MW, in Cooperation with Germany & EU& EIB is under implementation

and it is planned to be fully operated during this year (2015).

NREA’s Wind Energy Projects 550 MW in service + 1340 MW under

implementation and Development

220 MW, in Cooperation with Japan (JICA)

120 MW, in cooperation with Spain.

200 MW,, in cooperation with Germany,

AFD, EIB, EU.

200 MW, with MASDAR

200 MW, in Cooperation with Germany,

AFD

200 MW, in Cooperation with Japan (on

the Nile Western Bank).

Projects in the Pipeline (contracted for)

Projects under preparation





Transmission (BOO) since 2009

250 MW



Competitive Biding



End

users

RE sources by EETC

BOO

Fair Charge + Gov. guarantee

Energy

مناقصات تنافسية على مستوى ااألنتاجCompetitive biding on the supply side



Prevailing tariffs

(subsidized)

Energy

250 MW wind

project



Build OWN & Operate (BOO) projects since 2009




250 MW



Competitive Biding



Merchant IPP since 2012 120 + 600 MW

End users

Renewable energy

sources by IPP

Fair payment including wheeling charges

Energy

األتفاقيات الثنائيةBilateral agreements (merchant scheme)



Independent Power Producer (IPP) since 2012

120 MW + 600 MW






250 MW



Competitive Biding



Merchant IPP since 2012 120 + 600 MW

Fit/Quota since 2014

2000+2000+300 MW

FiT/Quota Renewable Energy Program Targets

Within the framework of the announced target of 20/20. GoE has announced an interim target for the first regulatory period (2015-2017) is to contract 4300 MW of both solar and wind energy, its breakdown is as follows:

300 MW for small solar systems

2000 MW of Medium and large size of Solar plants

2000 MW of Medium and large size of Wind plants



Small & Medium size projects

For the 300 MW target

57 service providers are certified;

Including 10 examined

21 under examination

23 completing their documentation

Monday, February 02, 2015

The Future of Renewable Energy in Egypt Mohamed Salah ELSOBKI (jr) 24

Large scale projects



Solar PV projects

Number of successful applicants

Capacity MW

Total Capacity MW

51 50 2550

2 25 50

14 20 280

67 2880

Large scale projects



Wind Projects

Number of successful applicants

Capacity MW

Total Capacity MW

7 100 700

19 50 950

1 20 20

27 1670

End users

Energy

Energy Renewable energy sources

FiT

Real value

Payment according to Fit

with Gov. Guarantee

Energy

تعريفة التغذية

Feed in Tariff / Quota



Feed In Tariff Prices for PV

Price (Pt/ Kwh) Finance Capacity

84.8 Pt / Kwh

Self finance or by soft loan from

Ministry of finance

(4% interest rate)

Residential

90.1 Pt/ Kwh Self financed with soft terms

from Ministry of finance

(4% interest rate)

Less than

200 Kw

97.3 Pt / Kwh Local Finance with local currency

through soft terms from Ministry

of Finance (8% interest rate)

From

200- 500 KW

13.6 $ cent/ Kwh

(or equivalent to 97.3 Pt/

Kwh

Foreign Finance From

500 - 20 MW

14.34 $ cent / Kwh (or

equivalent to 102.5 Pt/ Kwh)

Foreign Finance From 20 MW –

50 MW



Feed In Tariff Prices for Wind Energy

2nd Phase Prices for Wind

Energy (15 Years)

1st Phase Price

(5 years )

No. of Operational

Hours

PT/KWH C $/KWH PT/KWH C $/KWH

82.08 11.48

82.08

11.48

2500

75.53 10.56 2600

69.46 9.71 2700

63.83 8.93 2800

58.58 8.19 2900

53.68 7.51 3000

63.82 8.93

68.4

9.57

3100

59.53 8.33 3200

55.49 7.76 3300

51.70 7.23 3400

48.12 6.73 3500

44.73 6.26 3600

41.54 5.81 3700

38.51 5.39 3800

32.90 4.60 4000 Monday, February 02, 2015

The Future of Renewable Energy in Egypt Mohamed Salah ELSOBKI (jr) 29

آليات تنمية انتاج الكهرباء من الطاقات المتجددة

Mechanism for electricity generation from Renewables

Can they coexist ?



Areas

Capacity

MW

Areas

(km2) Zone

3550 1220 Suez Gulf (wind)

5800 841 wind East Nile

34900 1290 Solar

25350 3636 wind West Nile

17400 606 Solar

1800 37 Benban (Solar)

260 7 Kom Ombo (Solar)

East Nile

West Nile

Benban

Suez Gulf

Land for FiT

About 7650 KM2 have been allocated for Implementing RE projects

Kom Ombo

Yellow shaded cells represent the available areas



Locations of Wind Energy Project at the Red Sea

545 MW

• 128 km2

• Environmental Impact

Assessment (EIA) has

been conducted.

• Shutdown on demand

system will be applied.

• 240 km2

• Environmental Impact

Assessment (EIA) has

to be conducted.

Gabal El-Zayt

2 MW Wind Turbine has been used to estimate the total area for each Wind Farm. Monday, February 02, 2015

The Future of Renewable Energy in Egypt Mohamed Salah ELSOBKI (jr)

Status of Wind Energy Sites

33

500 MVA (22 / 220 kV) Substation 4

500 MVA (22 / 220

kV)

Substation 3

500 MVA(22 / 220 kV) Substation 5

500 MVA (22 / 220

kV)

Substation 2

500 MVA + 125 MVA (22 / 220

kV)

Substation 1

Location for Wind Energy Projects at Gulf of Suez

328 km2, 43 Plot, and 2100 MW



Locations of PV Project at Benban 37 km2, 38 Pieces, and 1800 MW



37 Monday, February 02, 2015 The Future of Renewable Energy in Egypt

Mohamed Salah ELSOBKI (jr)

Development of the Bank Guarantee

Carry out measurements, studies, sign agreements with EETC, and get the

interim license from EgyptERA

Commercial operation

10 years after commercial operation

End of commercial

operation (20 or 25 Years)

1% of the project

estimated cost

2% of the project

estimated cost

0.5% of the

project estimated

cost

0.5% of the

project

estimated cost

2% of the

project

estimated

cost

Dismantle

the equip.

and return

the land

Return Bank

Guarantee to

Investor

Usufruct Agreement already signed and Land already availed

Implementation of the Project

Thank you for your attention

[email protected]

[email protected]

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