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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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 3
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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%)
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 4
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.
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 5
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%.
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 6
Load curve for August 13, 2014
7
و.م28000
و.م 20297
و.م24575
(و.م)الحمل
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr)
Actions
Restructuring:
market since 1999 (BOOT, Regulatory)
electricity tariff (2004, 2007, 2014).
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 8
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 9
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.
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 10
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.
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 11
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 13
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 14
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 15
Framework for RE Development Mechanisms
Renewable Energy Development Schemes
Transmission (BOO) since 2009
250 MW
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 16
Competitive Biding
New& Renewable Energy Authority (NERA)
(EPC contracts) since 1999 750 MW 1900 MW
End
users
RE sources by EETC
BOO
Fair Charge + Gov. guarantee
Energy
مناقصات تنافسية على مستوى ااألنتاجCompetitive biding on the supply side
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 17
Prevailing tariffs
(subsidized)
Energy
250 MW wind
project
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 18
Build OWN & Operate (BOO) projects since 2009
Framework for RE Development Mechanisms
Renewable Energy Development Schemes
Transmission (BOO) since 2009
250 MW
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 19
Competitive Biding
New& Renewable Energy Authority (NERA)
(EPC contracts) since 1999 750 MW 1900 MW
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)
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 20
Independent Power Producer (IPP) since 2012
120 MW + 600 MW
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 21
Framework for RE Development Mechanisms
Renewable Energy Development Schemes
Transmission (BOO) since 2009
250 MW
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 22
Competitive Biding
New& Renewable Energy Authority (NERA)
(EPC contracts) since 1999 750 MW 1900 MW
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 23
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 25
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 26
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 27
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 28
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 ?
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 30
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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 31
• 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
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 34
Locations of PV Project at Benban 37 km2, 38 Pieces, and 1800 MW
Monday, February 02, 2015 The Future of Renewable Energy in Egypt
Mohamed Salah ELSOBKI (jr) 35
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