March 2012

ORGANIZATION CHART OF MINISTRY OF ELECTRICITY & ENERGY

Nuclear Materials Authority

Nuclear Power Plants Authority

Atomic Energy Authority

New & Renewable Energy Authority

Hydro Power Projects Execution Authority

Rural Electrification Authority

Egyptian Electricity Holding Company

MMaximizing the utilization of all resources.

PPromotion of the renewable energy utilization.

PPromotion of Electrical Interconnection.

IImproving efficiency of energy production and

use, by adopting energy efficiency policies.

EEnvironment protection by adopting suitable

measures in electricity generation.3

Installed Capacity Installed Capacity (MW)(MW)Installed Capacity Installed Capacity (MW)(MW) 28860288602886028860

Consumers Consumers (Million)(Million)Consumers Consumers (Million)(Million) 26.726.726.726.7

Installed capacity from hydro is 2842 MW

The technical assessment of Assuit hydro plant 32 M.W. has been finished, and the plant

is planned to be operated at 2015.

The technical assessment of Assuit hydro plant 32 M.W. has been finished, and the plant

is planned to be operated at 2015.

Institutional framework:

Establishing NREA (1986)

The national focal point to develop and introduce renewable energy technologies to Egypt on a

commercial scale together with implementation of related energy conservation programs

Resource Assessment

Wind Atlas of Egypt, 2005

Wind Atlas of Egypt, 2005

Wind Atlas of Gulf of Suez, 1996 - 2003

Wind Atlas of Gulf of Suez, 1996 - 2003

Egypt Wind Map, 1987

Egypt Wind Map, 1987

In cooperation with USAIDIn cooperation with USAID In cooperation with Risoe (Denmark) & EMA

In cooperation with Risoe (Denmark) & EMA

In cooperation with Risoe (Denmark) & EMA

In cooperation with Risoe (Denmark) & EMA

Egypt enjoys excellent wind regimes, particularly in the

Suez Gulf where the average wind speed reaches 10.5

m/sec.

The wind energy resource is available in large regions on the

Nile banks in the Eastern and Western Deserts and parts of

Sinai.

An area of about 1228 km2 has been

allocated for NREA on the Gulf of Suez

Region for implementing wind energy

projects either by NREA or by the private

sector according to the rules approved by

the Supreme Council of Energy

An area of about 1228 km2 has been

allocated for NREA on the Gulf of Suez

Region for implementing wind energy

projects either by NREA or by the private

sector according to the rules approved by

the Supreme Council of Energy

3 areas of about 6418 km2 has been

allocated for NREA on the Nile banks in the

Eastern and Western Deserts for

implementing wind energy projects by the

private sector according to the rules

approved by the Supreme Council of Energy

3 areas of about 6418 km2 has been

allocated for NREA on the Nile banks in the

Eastern and Western Deserts for

implementing wind energy projects by the

private sector according to the rules

approved by the Supreme Council of Energy

Area 3

Area 1

Area 2

Lands Allocation

- Since 2001, series of large scale wind farms, totaling about

500 MW, that will reach 550 MW in August 2010 in cooperation

with Germany (KFW), Denmark (DANIDA), Spain and Japan

(JICA).

- Key Indicators:

- Generated Electricity: ~ 7 Billion

kWh,

- Fuel Saving: ~ 1.5 Million T.O.E.,

- Emissions Reduction: ~3.8 Million

T.CO2.

The Solar Atlas was issued, and indicated that Egypt is considered as one of the sun belt countries where it is endowed with 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 Thermal Electricity Generation

140 MW Solar thermal power plant The 1st CSP plant is 140 MW including

solar field of 20 MWe based on parabolic trough technology is under implementation.

The project starts operate commercially in June 2011

Summary of Technical Parameters

Capacity of solar portion (MWe)20

Nameplate capacity of gas turbine (MWe)79

Nameplate capacity of steam turbine (MWe)76.5

Net electric energy (GWhe/a)852

Solar electric energy (GWhe/a)33

Solar share(%)4%

Fuel saving due to the solar portion (T.O.E / a)10000

CO2 reduction (T/a)20000

Photovoltaic (PV) Applications

Most of PV applications were demonstrated and field tested: • Water pumping, • Desalination, • Refrigeration, • Village electrification, • Lighting, telecommunication, and other PV applications

Some applications are all already commercialized :• Telecommunications• Remote roads lighting and billboards lighting• Remote desert small load

Currently, the total installed capacity is about 5 MW

(7 local companies).

Gulf Arab Countries

Eastern Arabcountries

Europe

Western Arab countries

African Countries

TurkeySpain

MoroccoTunisia

Algeria

EGYPTLibya

Jordan

SyriaLebanonIraq

Bahrain

Qatar

Kuwait

Sudan

Oman

Saudi Arabia

EmiratesEthiopia

• A new electricity law has been developed by the Ministry of Electricity & Energy and it is subject to the constitutional approvals.

• The law has been designed to reflect the ongoing market reform as well as to strengthen the regulatory agency.

• It includes articles supporting renewable energies, through encouraging private investments in renewables.

New Electricity Law

Main features of the new law

• Establishment of competitive electricity market which is based on bilateral contracts

and adoption of the concept of eligible customers.

• Third Party Access (TPA).

• Supporting renewable energies, cogeneration and power generated from secondary

resources.

• Supporting energy efficiency and demand side management .

National Strategy up to 2020

• In February 2008, the Supreme Council of Energy approved an ambitious plan to:

Satisfy 20% of the generated electricity by renewable energies by 2020, including:• 12% from wind energy, i.e., reaching more than 7200 MW grid-connected wind farms.•5.8% from Hydro,•2.2 % from solar energy (CSP & PV)

Polices of Implementing RE Strategy

Poss

ible

tra

cks

Governmental projects

Private investments

33%67%

A policy to foster the increasing of wind energy contribution consists of two phases:

Phase 1,

• Competitive Bids approach through issuing tenders internationally requesting private sector to supply power from wind energy projects for

a period of 5 years.

Phase 2, • Feed-in-tariff system will be applied taking into consideration the prices

achieved in phase 1.

Support of Egyptian Government

- More than 7600 square kilometers of desert lands have been allocated for implementing future projects.

- All permits for land allocation are already obtained by NREA.

- EIA including Bird migration study will be prepared by NREA in cooperation with international consultant and financed by KfW.

- Exempting all renewable energy equipment and spare parts from the customs duties.

- Signing land use agreement.

- Signing long term PPA ( 20-25) years .

- Central Bank of Egypt will guarantee all financial obligations of EETC under the PPA.

- The project will benefit from carbon credit .

- The project company shall get license for power generation from Egyptian Electricity Regulatory Agency.

Projects under implementation 200MW

Projects in the Pipeline 540MW

Projects under preparation 580MW

Projects under implementation by the Private Sector

120 MW, in cooperation with Italian Company to supply electricity for its owned factories in Egypt.

250 MW wind farm on a BOO basis in the Gulf of Suez:

1000 MW wind farm on a BOO basis in the Gulf of Suez

The prequalification documents for the 2nd competitive bid for 1000 MW wind farm, in 4 phases (4x250 MW), will be announced during the next few months.

120 MW, in cooperation with Italian Company to supply electricity for its owned factories in Egypt.

250 MW wind farm on a BOO basis in the Gulf of Suez:

1000 MW wind farm on a BOO basis in the Gulf of Suez

The prequalification documents for the 2nd competitive bid for 1000 MW wind farm, in 4 phases (4x250 MW), will be announced during the next few months.

Objectives of IPP/BOO Wind Program

• Accelerate development to achieve 2020 renewable energy target of 12% of total energy generated

• Bankable wind projects with low risk profile • Competitive kWh price – through effective

international competition• Encourage local manufacturing, create Jobs,

transfer of knowhow and capacity building.• Accelerate process by timely pre-development• Use best industry practice & experience

Steps Completed for the First 250 BOO Project

• RFPQ issued in May 2009.

• 34 offers received in August 2009.

• Short list of 10 bidders concluded

in November 2009.

• The RFPQ document gave the opportunity to the bidders either to measure individually or jointly.

Steps Completed for the First 250 BOO Project (Cont.)

• In January 2010 , a Site Measurement Framework Agreement was signed between EETC and the short listed bidders.

• Nine of the short listed bidders opted to measure jointly (became 8 after the withdrawal of AES), while EDF reserved the right to measure individually.

• In July 2010 Garrad Hassan was contracted to do the Joint Site Wind Measurements, which started in December 2010.

• In March 2011 the company Map was contracted to do the Joint Site Topographical Studies (aerial laser scanning).

Experience from 250 MW Process:What attracted large, professional bidders?

• Promise of 2500 MW pipeline of IPP/BOO projects;• Good long-term wind reference data at Gulf of Suez.• High quality requirements for site measurements,

turbines and financials - signals serious buyer, who wants serious top quality bidders.

• Low upfront costs for bidders measuring jointly; - important - even for large bidders

• Pre-developed sites with prior EIA, Environmental Impact Assessments + land rights + solid long-term wind reference data = Low risk

Experience from 250 MW Process

Joint measurement program 100% popular, but…

Consensus between competitors on every step requires time, hard work & diplomatic skills to manage…

On – going Activities

NREA plan up to 2017 includes carrying out 100 MW CSP project, a study of EMPower program recommended to select Kom Ompo site to host this project.

Developing RE Master Plan (Priority is for Wind, CSP&PV).

40 MW photovoltaic (2 projects) are under preparation.

Egypt hosts

The Regional Center for

Renewable Energy & Energy

Efficiency

for the Middle East & North AfricaIn cooperation with Germany, Denmark and EU.Serving 13 Arab countries from Middle East and North Africa region.Main Activities:– RE & EE policies & strategies.– R&D and Technology Transfer.– Public Private Partnership.

On – going Activities

NREA plan up to 2017 includes carrying out 100 MW CSP project.

Developing RE Master Plan (Priority is for Wind, CSP&PV), including a FS for 100 MW grid connected CSP in cooperation with EC & KfW.

It is planned to assign the consultant at the end of 2010 to conduct this feasibility study which will be finalized by the end of 2011.A study of EMPower program recommended to select Kom-Ombo site to host 100 MW grid connected CSP project.

Government of Egypt requested a supporting from the world Bank to finance this project through Clean Technology Fund (CTF) loan of US$ 100 million.

The world Bank welcomed to support the Government of Egypt in financing this project.

Mediterranean Solar Plan

The “Union for Mediterranean” was launched on July 2008 at the Paris Summit,

in purpose of strengthening regional cooperation in different fields; amongst

are renewable energies through the “Mediterranean Solar Plan”.

The main objective is to reach 20 GW of new renewable energy capacities by

2020 in the region, mainly by CSP, wind and PV .

The Ministry of Electricity proposed three projects for the short term up to 2010: 200MW Wind farm 50MW CSP plant 20MW PV plant.

In addition two regional cooperation programs in the fields of CSP and Solar Cooling are proposed for the period 2011-2020.

• In July 2009 the ‘DESERTEC Industrial Initiative’ (Dii GmbH) was launched for creating the conditions for an accelerated implementation of the DESERTEC Concept in the EU-MENA region.

• The DESERTEC Industry Initiative aims to establish a framework for investments to supply the Middle East, North Africa and Europe with solar and wind power.

• The long-term goal is to satisfy a substantial part of the energy needs of the Middle East and North Africa, and meet as much as 15% of Europe’s electricity demand by 2050.

DESERTEC Initiative

• Finally, Private Sectors are invited to share the

future Egyptian plan :

Establish new conventional and renewable power plants mainly for the wind farms.

Local manufacture for the components of conventional, renewable power plants and the networks components.

Technology transfer.

Capacity Building.

• Finally, Private Sectors are invited to share the

future Egyptian plan :

Establish new conventional and renewable power plants mainly for the wind farms.

Local manufacture for the components of conventional, renewable power plants and the networks components.

Technology transfer.

Capacity Building.