www.meetmed.org

Mitigation Enabling Energy Transition in the MEDiterranean region

Renewable Energy in Egypt,

From Plan to Plant

3 rd October 2018

Eng. Ehab Ismail AmeenDeputy Chairman for Studies, researched and technical affairs

New and Renewable Energy Authority (NREA), Egypt

ehab4768@gmail.com

www.nrea.gov.eg

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Content

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Renewable Energy Projects in Egypt

•Renewable Energy Strategies

•Renewable Energy Sector

•Renewable Energy Schemes in Egypt

•Wind Energy Projects in Egypt

•Mega-Scale Solar Energy Projects

•Distributed Renewable Energy Systems

• Conclusions

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Renewable Energy Strategies in Egypt

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Vision, Strategy, and Policies

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Renewable Energy Projects in Egypt

Vision

Strategy

Increase Share of renewable energy in the energy sector.

Satisfy 20% & 42% of the generated electricity by renewable energies by 2022, 2035 respectively.

Policies a) Competitive Bidingb) Merchant Schemec) Feed-In Tariff, FiT

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Renewable Energy Sector

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Electricity in Egypt

Total installed capacity about 45 GW

o 41.3 thermal,

o 2.8 hydro,

o 0.97 wind

o 0.15 PV

o 0.14 CSP

Secured supply to 99% of the population.

Renewable Energy (Wind & solar) represent about 2 % from the

installed capacity & 0.8% from the

electric energy.

41321

2800 887

Thermal Hydro Renewable

Renewable Energy in Numbers

+ US$ 2.0 billion

Total investment

+150 MWunder construction

+ 1800 MWFinancial Closure

+ 1200 MW

Installed Capacity

≈US$ 2.5billion

Total Invest. In 2017

+30

Years of Experience

+ 1500 MW

In the development Phase

Wind Resource Assessment

Egypt wind Atlas – 2005

Solar Resource Assessment

Source : Egypt Solar Atlas

Lands Allocated for Renewable Energy

East Nile

West Nile

Kom Ombo

Suez Gulf

Benban

Total Capacities > 50 GW (Wind + Solar)

Areas

Areas

(km2)Zone

1220Suez Gulf (wind)

841WindEast Nile

1290Solar

3636WindWest Nile

606Solar

37Benban (Solar)

7Kom Ombo (Solar)

7637TOTAL

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1) Constitution / Article 32To get optimum benefits from renewable energy, promote its investments, and encourage R&D, in addition to local manufacturing.

2) Law No. 203 of Year the 2014To Motivate Production of Electricity from Renewable Energy Sources.

3) Electricity Law, July 2015It governs the electricity sector in Egypt.

4) Announcement of the Second Round of FiT

5) Circular No. 3, of the Year 2017, Net Metering

6) Cabinet Decree No. 1947 of the Year 2014 on Feed-in Tariff -1st RoundIt establishes the basis for Feed-in Tariff for energy produced from renewable energy projects and encourage investment in renewable energy.

7) Prime Ministerial Decree No. (2532) of the Year 2016 on Feed-in Tariff-2nd RoundRegulations to Avail Land for renewable Energy Projects.

Legal Framework

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Legal Framework

7) Prime Ministerial Decree No. (37/4/15/14) of the Year 2015Regulations to Avail Land for renewable Energy Projects.

8) Investment Law No. 8 of the Year 1997 (as amended) On Investment Guarantees and Investments

9) Presidential Decree No. 326 of the Year 1997 (as amended)It establishes the Electric Utility and Consumer Protection Regulatory Agency, affiliate of the Ministry of Electricity and Renewable Energy, responsible of the issuance of permits and licenses for generation, transmission and distribution.

10) Law 4 for the Protection of the Environment (as amended)The law formulates the general policies for protecting and promoting the environment.

11) Law No. 102 of the Year 1986 (as amended)Establishes the New and Renewable Energy Authority, NREA. NREA has the primary

role in promoting and developing renewable energy in Egypt.

12) Companies Law No. 159 of the Year 1981 (as amended) It establishes the requirements for incorporation of an SPV and the general rules for its management.

Renewable Energy Schemesin Egypt

Renewable Energy Development Schemes

NERA*

- EPC contracts since 1993- 750 MW 1890 MW- Solar (PV) ≈ 200 MW

Framework for RE Development Mechanisms

CompetitiveBiding

Merchant Scheme

Fit/Quota since 2014- 2000 MW Wind- 2000 MW PV - 300 MW PV (rooftop)

+ EETC: Egyptian Electricity Transmission Company* NREA: New and Renewable Energy Authority

EETC+

a) Wind (Financial Closure Phase)- 250 MW @ Gulf of Suez

b) Tendering Phase - 250 MW Wind - 100 MW CSP- 2 x 200 MW PV Projects

Renewable Energy Development Schemes

NERA- EPC contracts since 1993- 970 MW 1670 MW- Solar(PV) ≈80 MW

Framework for RE Development Mechanisms

CompetitiveBiding

Merchant SchemeFit/Quota since 2014- 2000 MW Wind- 2000 MW PV - 300 MW PV (rooftop)

EETC+

a) Wind (Financial Closure Phase)- 250 MW @ Gulf of Suez

b) Tendering Phase - 250 MW Wind - 100 MW CSP- 2 x 200 MW PV Projects

Projects done through Competitive Bidding

Solar Projects Under Development

a) EPC ( about 200 MW):2 grid connected PV projects, 20 & 26 MW, in Hurghada & KomOmbo are in tendering phase.3 projects are under preparation with total capacities 150 MW

b) BOO (1700 MW):200 MW PV Projects at Kom Ombo, (2.75 Cent $/KWh)200 MW of PV Project at West Nile region600 MW of PV Project at West Nile region (3.8 Cent $/KWh)600 MW of PV Project at West Nile region100 MW CSP Project at West Nile region

Renewable Energy Development Schemes

NERA- EPC contracts since 1993- 750 MW 1890 MW- Solar(PV) ≈80 MW

Framework for RE Development Mechanisms

CompetitiveBiding

Merchant SchemeFit/Quota since 2014- 2000 MW Wind- 2000 MW PV - 300 MW PV (rooftop)

EETC+

a) Wind (Financial Closure Phase)- 250 MW @ Gulf of Suez

b) Tendering Phase - 250 MW Wind - 100 MW CSP- 2 x 200 MW PV Projects

Feed-in Tariff/ Locations of FiT PV Project

37 km2, 45 Pieces, 1750 MW@ Benban/Aswan

A) Photovoltaic > 500 kw

A-1) TariffUS$ 8.4 Cents/ kWh to projects rangefrom 20 – 50 MWUS$ 7.99 Cents/kWh to projects morethan 500 kW

A-2) Maturity: 25 YearsA-8) Targeted Capacity: 2000 MW

32 Companies with total capacities 1465 MW have been qualified and finalize their financial closure in one location (Benban, Aswan Governorate).

Substations1 – 4

North Worker Camp

South Worker Camp (and temporary truck park)

Location of new truck park

Gates 1 – 4

Facility Manager including clinic, fire, ambulance, police accomodation

Benban Solar Park Substations, truck park, worker accommodation, FMC, gates and circulation (October 1 2018)

emergency relief (in/out)

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Small and Medium Projects (SME’s) Net Metering Concept

EgyptERA issued the Periodical Book No. 3 for 2017 forencouraging the Customers for using PV systems by using Net-metering Mechanism.

Net Metering is available Up to 20 MW for every single project.Potential Projects:

1. Industry.2. Resorts.3. Hotels.4. Compounds.

Challenges: …………………..

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Independent systems in the isolated Communities

Future of Renewable Energy &The Potential for micro-

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Socio-Economic Effects

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CO2

Abatement k-tCO2

EnergyGWh

Fuel Savingsktoe

InstalledCapacity

MW

Year

113020574407502015/2016

16250295006350105002023/2024

RE Benefits

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Jobs Creation

• About 52400 indirect jobs (5 jobs/ MW) .

• About 5250 direct jobs (0.5 jobs/ MW)

EnergyGWh

InstalledCapacity

MW

Year

20577502015/2016

29572104802023/2024

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Energy Efficiency

Solar Water Heating in Egypt

About only 800 000 m2 of installed solar water heaters, due to the

following:

1. Low energy prices and large subsides given to conventional energy

sources.

2. High investment cost of SWHs comparing with the traditional water

heaters (electrical or natural gas or LPG).

3. no specific financial incentives for the deployment of SWHs in

Egypt.

4. The limited availability of the required area to install SWHs on the

building roofs.

5. No national certification or standard for SWHs installers.

6. Inadequate quality control infrastructure leads to entry of low

quality products into the market,

▪ This center was establishedin cooperation with EU &Italy.

▪ The center includes a set ofintegrated advanced indoorand outdoor laboratories fortesting and certification ofrenewable energyequipment (solar, wind &biomass)

▪ It includes updated SolarWater Heaters & PV testinglabs

RE&EE Testing & Certification Center

➢The Center is also entrusted to serve the

Egyptian energy efficiency standards &

labeling program through specialized

laboratories for:

• Refrigerators,

• Washing Machines,

• Air Conditions,

• Electric Heaters,

• Lighting units.

• Dish Washing Macines

➢

RE&EE Testing & Certification Center

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Renewable Energy Future

1) A study “Support the Technical and Financial Sustainability of the

Renewable Energy and Energy Efficiency Sectors” is under

conducting and financed by EU.

2) A report “Renewable Energy Outlook Egypt “ already prepared by

IRENA and will be launched next week in the Egypt Renewable

Energy Conference, in Cairo

Conclusion

Conclusions1) Egypt is transfer from plan to implement RE plants

2) Large-scale Renewable energy projects are one of the main elements

to attract Foreign Direct Investments ,

3) Thanks for Feed-in-Tariff Scheme which create the RE market in

Egypt and attract the developers, International Lenders, ……

4) Based on the above and the current devaluation of renewable energy

prices, Feed-in-Tariff, FiT, has been replaced by the competitive bids,

and Auction in the coming phase.

5) There are many challenges to promote small & medium projects in

Egypt.

6) There is a huge potential for EE in Egypt after reforming the

electricity tariff

Thank You

www.nrea.gov.eg