Energy – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Mon, 14 Oct 2019 20:06:20 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Egypt supplies natural gas to 1.2m households in 1Q 2020: El-Molla https://wwww.dailynewssegypt.com/2019/10/14/egypt-supplies-natural-gas-to-1-2m-households-in-1q-2020-el-molla/ Mon, 14 Oct 2019 17:01:38 +0000 https://wwww.dailynewssegypt.com/?p=710895 El-Molla revealed that the connection process was accelerated in the first quarter (Q1) of FY 2019/20, as the natural gas supply was extended to 21 new areas.

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Egypt’s Minister of Petroleum, Tarek El-Molla, announced that 1.2m households were connected to the natural gas grid during the current fiscal year (FY) 2019/20.

El-Molla revealed that the connection process was accelerated in the first quarter (Q1) of FY 2019/20, as the natural gas supply was extended to 21 new areas.

Last year, the Ministry of Petroleum launched an initiative to reduce the costs of natural gas connection to households. It provides a facilitated payment plan with EGP 30 monthly instalments added to the gas bill over a 6-year period, without down payment.

“The initiative contributed positively to the increase of citizens’ interest in delivering gas to their houses instead of LPG cylinders,” he clarified.


El-Molla’s statement came during the follow-up report
on the implementation of the Household Natural Gas Connection project, which aims to expand the natural gas network to reach 17m households by 2030, roughly 800, 000 connections a year.


From July to September, about
306,000 households were connected to the natural gas grid, representing 102% of the target.

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EETC to sign power purchase agreement with Siemens Gamesa within weeks https://wwww.dailynewssegypt.com/2019/10/14/eetc-to-sign-power-purchase-agreement-with-siemens-gamesa-within-weeks/ Sun, 13 Oct 2019 22:24:13 +0000 https://wwww.dailynewssegypt.com/?p=710843 German company to build 500MW wind farms in Egypt, Japanese institutions to finance the first phase

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The Egyptian Electricity Transmission Company (EETC) will sign a power purchase agreement with Siemens Gamesa within weeks.

The cabinet approved at its last meeting to contract with the German company to implement wind farms with a total capacity of 500MW under the BOO scheme and the same contractual terms of the previous tender.

A source at the Ministry of Electricity told Daily News Egypt that the cabinet approved an offer by Siemens to launch two wind power plants, the first with a capacity of 180MW and the other of 320MW.

The source added that the Marubeni alliance will secure the required funding for the implementation of the first phase of the project from Japanese institutions, including the Japan International Cooperation Agency (JICA). The funding of the second phase is still under negotiation with international bodies.

The source pointed out that the EETC will initially sign the power purchase agreement of the project’s first phase calculated based on average wind speeds in the area of the stations, and then it will sign the second phase’s agreement. Siemens Gamesa offered to sell energy at 3.1-3.8 piasters per kw.

This project is among the 2,000MW wind power plants agreed upon during the Sharm El Sheikh Economic Conference in 2015. The German company obtained land for the implementation of only two phases of the project so far.

The total capacity produced from wind power plants implemented by Siemens Gamesa in Egypt is 1,000MW.

Egypt plans to generate 20% of its energy from renewable resources by 2022. Egypt’s current power production is about 50,000MW, of which about 2,400MW from hydropower, about 1,000MW from wind, and 170MW from solar energy.

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Egypt to impose quality control on solar equipment importers starting 23 October https://wwww.dailynewssegypt.com/2019/10/13/egypt-to-impose-quality-control-on-solar-equipment-importers-starting-23-october/ Sun, 13 Oct 2019 17:47:52 +0000 https://wwww.dailynewssegypt.com/?p=710809 Importers to conduct product testing at NREA for maximum EGP 40,000 per container

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The government will begin implementing a new system obliging heater and solar cell importers to conduct product testing at the New and Renewable Energy Authority (NREA) starting from 23 October.

The NREA held a workshop on Thursday for suppliers of solar photovoltaic systems and heaters to discuss the implementation of the decision.

Some 20 importers participated in a workshop by the NREA on the new system, in the presence of Mohamed Al-Khayat, chairperson of the NREA, and Ehab Farouk, planning manager, supervisor of the solar energy factories in the NREA.

A government source told Daily News Egypt that several importers of heaters and solar cells have been testing their products in the laboratories of NREA for some time.

The source added that the companies importing solar energy equipment are obliged to conduct product testing in the Egyptian Organisation for Standardisation & Quality and the NREA to verify their quality.

Clients will pay fees for product testing. Daily News Egypt got the pricing list of these tests at the NREA, which indicates a maximum of EGP 40,000 per container.

The price of the visual inspection costs EGP 240, EGP 1,800 for insulation test, EGP 2,100 for exposure to climatic conditions, EGP 2,000 for measuring electrical power, EGP 2,000 for measuring heat coefficients for the solar model, and EGP 2,000 for measuring performance at high temperatures.

The freezing and humidity test costs EGP 3,450, EGP 10,300 for heat testing, EGP 3,900 for thermal cycle exposure, EGP 1,700 for current leakage for the solar model, EGP 1,000 for electrical lighting test, and EGP 500 for the solar peeling test.

The source said that when a company adheres to the specification, it will receive a certificate of competence. If it fails, its products will be confiscated and prevented from entering the market.

The decision issued by the Minister of Trade and Industry, Amr Nassar, last year, giving producers and importers a suitable period to adjust their conditions.

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Gas exports fell to 100m scf/day due to low global prices https://wwww.dailynewssegypt.com/2019/10/12/gas-exports-fell-to-100m-scf-day-due-to-low-global-prices/ Sat, 12 Oct 2019 21:39:27 +0000 https://wwww.dailynewssegypt.com/?p=710764 Egypt poised to achieve surplus of production after meeting the needs of domestic market

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Egypt has reduced the amount of natural gas exported through the Idku liquefaction plant of the Dutch Shell Company to about 100m cubic feet per day (scf/day) compared to 500m scf/day in August.

A source in the oil sector told Daily News Egypt that the quantities of gas exported through Idku is reduced because of the decline in prices in world markets, as a result of oversupply against low consumption rates in importing countries of liquefied gas.

He explained that the quantities of gas destined for export through the Idku liquefaction plant is determined according to the shipments contracted to supply during the current period periodically, with regular pumping through the national gas network.

The source added that the quantities of exporting natural gas through the Idku liquefaction plant increased, giving Egypt the chance to return to world markets strong after achieving local self-sufficiency and surplus production.

Gas prices have begun to decline after years of the United States increasing its shale gas production dramatically. At the time, oil prices had fallen compared to gas prices, which has helped reduce natural gas dependence somewhat.

Markets are experiencing seasonal fluctuations, with peak demand in winter, lower levels in summer, while consumption falls sharply in spring and autumn. In addition, the conflict between Russia and the United States has caused both countries to increase their gas exports.

The source said that the Ministry of Petroleum’s plan to link Zohr, North Alexandria, and Burullus fields is going according to schedule, which will contribute to an increase in local production, cover consumption, and operate liquefaction plants, along with gas coming from Cyprus and Israel.

The contractual share of the Idku Liquefaction plant is estimated at 1.13 bn scf/day. The ownership structure of the plant is divided into 12% for the General Petroleum Corporation, 12% for the Egyptian Natural Gas Holding Company, in addition to 35.5% for Shell, 35.5% for Malaysian oil and gas company Petronas, and 5% for Gaz de France.

Egypt’s production of natural gas rose to about 7bn scf/day, compared with 6.2 bn scf/day last year, after linking gas production from the second phase of the West Nile Delta project and a number of other wells.

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KaramSolar negotiates with 5 banks to finance EGP 1bn solar projects https://wwww.dailynewssegypt.com/2019/10/12/karamsolar-negotiates-with-5-banks-to-finance-egp-1bn-solar-projects/ Sat, 12 Oct 2019 20:36:32 +0000 https://wwww.dailynewssegypt.com/?p=710756 The list of banks in negotiation with KarmSolar includes IFC and EBRD

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KarmSolar is negotiating with five local and international banks to borrow EGP 1bn to finance the construction of several solar power plants.

Ahmed Zahran, the company’s CEO, said that KarmSolar aims to obtain the funding before the end of this year in order to implement the targeted plants and sell the energy produced for private companies at competitive prices.

Zahran told Daily News Egypt that the list of banks in negotiation with the company includes the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). However, Zahran did not disclose the rest of the banks, saying, “it’s also possible to include Banque Misr to the list, after the bank has concluded an agreement recently with the company to finance EGP 230m worth solar projects.”

He explained that the loan offered by Banque Misr was allocated to finance the construction of 24MW solar power plants. KarmSolar sells the electricity produced by these projects to the Dakahlia Group under an agreement signed before the loan was obtained.

Zahran added that his company will provide 93% of the Dakahlia Poultry and Dakahlia Agriculture’s power needs for 30 years. Moreover, KarmSolar seeks to establish an administrative headquarters next to each of its power stations to follow up their performance and provide maintenance throughout the contract period.

He said that the company is continuing its plan to implement solar power plants and sell production to the private sector. The company secures financing for its projects from banks, and contributes part of its own sources to retain the ownership of the plants and sell energy on a net metering scheme.

He explained that the company is negotiating with several companies in Minya and Beni Suef governorates to sell electricity to them. It seeks to change the electricity distribution system, and to extend the customer base of solar energy.

KaramSolar contracted with Cairo Three A Group last February to implement a 100MW solar power plant in Bahariya Oasis to provide electricity for a 26,000-feddan poultry project.

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RCREEE participates in preparing renewable energy plans in Tunisia, Jordan, Iraq, and Sudan: Karam Eldein https://wwww.dailynewssegypt.com/2019/10/11/rcreee-participates-in-preparing-renewable-energy-plans-in-tunisia-jordan-iraq-and-sudan-karam-eldein/ Fri, 11 Oct 2019 11:25:23 +0000 https://wwww.dailynewssegypt.com/?p=710578 SMEs movement towards Africa is essential for upcoming period

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The Regional Center for Renewable Energy and Energy Efficiency (RCREEE) participated in the preparation of national renewable energy plans in Tunisia, Jordan, Iraq and Sudan in cooperation with the United Nations Development Program (UNDP) and the European Union (EU), according to Maged Karam Eldein, senior technical expert at RECREEE in an interview with Daily News Egypt.

How did the Center participate in the preparation of national renewable energy plans?

The Center recently completed its contribution to the preparation of the National Renewable Energy Plan in Jordan until 2023 in cooperation with the EU. The center is involved in developing a renewable energy strategy in Sudan.

A meeting was held with Sudanese officials last week to develop a strategy to benefit from wind energy in cooperation with the UNDP. Renewable and hydroelectric power is expected to contribute 12% to 13% of the grid’s capacity within 10 years.

Have you participated in other programs to promote renewable energy in other countries?

The center has recently participated in the program to stimulate the use of solar energy in Iraq. Recommendations have been taken to attract the private sector to invest, a renewable energy law is being prepared, and a tender experienced in renewable energy is announcing the launch of the 750 Megawatt (MW) capacity project.

The RECREEE also participated in the National Renewable Energy Plan for Tunisia, which is one of the first countries to launch decreasing bid projects. The same bids that Egypt is looking to implement during the coming period.

What about cooperation with the authorities and ministries in Egypt?

The centre contributed to a training programme in cooperation with the Egyptian Electricity Transfer company (EETC) to expand the linkage of renewable energy capacities to networks. It also participated in the Pan-Arab Sustainable Energy Strategy in cooperation with the Arab League. The Arab Ministerial Council is in the process of adopting this strategy.

How do you evaluate Egypt’s surplus in energy production?

In the 90s, Egypt had a capacity surplus with growth rates and increased demand for energy, these capacities were consumed. This is part of an integrated plan for the future, to calculate the evolution and growth rates in energy demand.

Egypt is doing well and growth rates reached 5.5%. Energy demand will rise in the coming period. Growth in domestic demand is declining due to the success of the rationalization programmes, and the growth will be directed for the purposes of achieving an economic return. It is an opportunity for Egypt to achieve economic development.

Renewable energy is a very important part of the energy mix in Egypt. It is considered the best environmentally and economically. However, a study should be conducted to determine the possibility and capability of the electric grid to accommodate the produced capacities and implement projects to store energy and use batteries, which will have a big role in the future.

Can Egypt become an electricity exporter?

Egypt has a great opportunity to expand the use of renewable energy, especially as it is one of the most important countries on which the basis of the African Energy Initiative was made. The initiative aims to produce 300 gigawatt (GW) until 2030.

Egypt is one of the founders of this initiative. As part of this initiative, a meeting of North African countries was held in cooperation with the RECREEE. Everyone is looking up to the experiences of Morocco, Tunisia, and Egypt in renewable energy projects.

Egypt has great opportunities for expansion in Africa. Sudan is one of the most important countries that has many opportunities for all companies especially since the population’s access to electricity is less than 40%. Sudan has  better luck and has many opportunities provided that good offers are made.

What are the features and strategy of expanding renewable energy?

Expansion in Africa is a must and small and medium enterprises (SMEs) should cooperate. They must have the support of the Ministry of Industry by giving them advantages to compete in the African market.

Technology is different from what is expected within 10 years, especially with the development and the trend to create smart cities and electric cars, and it is possible to recharge cars in homes or sell electricity from their homes for the benefit of the state.

Each country designs its experience and programs to suit its readiness, market, and technology. Some countries have amended their legislation to comply with investment requirements, and the coming period requires a move towards smart networks in the fields of transport and distribution.

What is your vision for the investment and legislative climate in Egypt?

Egypt is attractive for investment, and we need, in the coming period, to accelerate the steps systematically in line with the expansion of networks and the readiness of infrastructure and land.

Egypt’s plan until 2035 is to produce more than 50,000 MW of renewable energy, which means it needs to implement projects at the rates of 3,000 to 5,000 MW annually, and the state must determine the mechanisms that allow for this number, as well as the system used to implement it both with the government and the private sector.

Current global development lies in the implementation of renewable energy projects with a competitive bidding system, to excel in achieving a competitive advantage and the implementation of more than one project at the same time.

The solar power complex in Benban proved the attractiveness of investment in renewable energy, and that Egypt now has fundable contractual documents to back it up. Egypt gained the trust of Arab and international companies as well as many foreign financial institutions.

The demand rate of investment in renewable energy in the Middle East and the countries is very high, and there are countries with many requests for investment in energy such as Saudi Arabia, Algeria and the UAE. There are many companies seeking to diversify their investment portfolio in many countries currently.

The low risks and prices of solar cells contributed to reducing the sale price of electricity produced from solar projects, as Egypt reduced the risks of currency and arbitration in case of conflict, which resulted in investors having confidence in the renewable energy market.

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Solar market rebounds despite lack of funding, awareness https://wwww.dailynewssegypt.com/2019/10/11/solar-market-rebounds-despite-lack-of-funding-awareness/ Fri, 11 Oct 2019 11:22:33 +0000 https://wwww.dailynewssegypt.com/?p=710580 A total of 332 small power plants were connected to the national grid, outputting 23.5MW

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Solar energy projects have proved their economic feasibility. The number of companies qualified by the New and Renewable Energy Authority (NREA) to implement small solar projects, with a maximum capacity of 500 kw each, reached 204 companies, but they complain about the lack of awareness of solar energy, financing programmes, and dependence on importation to secure the components of their plants.

Wael El-Nashar, chairperson of Onera Systems, said his company will complete the construction of a solar power plant for South Sinai Water and Wastewater Company with a capacity of 1.250MW within two months. The solar plant will be used to desalinate water in Sinai and will be financed through a grant from the United Nations Development Programme.

He explained that the company is negotiating the implementation of a number of solar energy projects with capacities ranging from 200 to 500 kw. The company has recently finished installing a solar power plant for the German School in Dokki that outputs 120 kw and was designed to look as an open book.

El-Nashar stressed the need for providing financing programmes dedicated to individuals wishing to establish solar power plants, especially that such funds contribute to the establishment of factories to produce solar plant components locally. He explained that Onera agreed with leasing companies to finance establishing solar power stations for the benefit of customers with payment facilities and low interest.

He called for tougher controls on solar cell imports, as well as the state’s adoption of a plan to increase awareness of the importance of solar energy applications. “Citizens should be confident in the idea of using solar energy,” El-Nashar said.

Meanwhile, Wael Madkour, head of Solamisr, said that the company aims to implement stations for the industrial sector of 5MW next year, where the company is currently negotiating with two companies to install solar panels on their roofs.

He added that Solamisr has implemented 75 solar power plants with a total capacity of 1.5MW, which includes 70 projects for the domestic sector, four stations in the administrative sector, and one project in the industrial sector. All of these projects are linked to the national electricity grid.

He added that the company installed solar panels in the headquarters of the Union National Bank – Egypt, where it put about 1,500 solar panels on the facade of the building, up to 13 floors, beside the installation of a solar plant at the top of the building, where the goal is not only to produce energy, but the use of solar panels instead of glass.

Madkour stressed the need to raise awareness among citizens to use solar energy in their buildings and factories and for the state to adopt initiatives to stimulate the use of solar energy, following the campaign for using LED lightning.

He called for testing the solar cells and systems that are being installed to ensure their efficiency and quality, stressing that the challenge during the coming period is the possibility of networks to absorb the capacity produced from solar energy.

Mostafa Abou El-Goukh, chief executive of Solring, said his company went to sell solar systems in pickup trucks, which contribute to the provision of electricity to operate refrigerators and a full kitchen inside the car. The company recently sold an ice cream car with solar-powered refrigerators.

He added that the company has sold seven mobile ice cream tricycles using solar power plants. The company is focused on installing solar panels for cars to operate kitchens. The cost of tricycles amounts to EGP 35,000-40,000, while for cars, it costs some EGP 200,000.

He pointed out that he received funding from Misr El Kheir Foundation worth EGP 150,000 at the beginning of his project, expecting that his sales will increase in the coming period in conjunction with the final lifting of subsidies on electricity prices.

He explained that Solring aims to sell 25 cars with an integrated solar-powered kitchen next year. The company has obtained a licence from the NREA to install solar systems.

Ibrahim Hashim, director of Italian Med Group, said his company has implemented three solar projects in Kafr El-Sheikh area with a capacity of 9 kW. They seek, in the coming period, to implement solar stations on top of residential buildings with capacities reaching up to 400 kW, in addition to obtaining a land in Aswan to construct a small solar power plant.

He explained that the main challenge facing solar energy projects is the lack of knowledge and awareness of its importance, in light of the high prices of electricity, and the provision of funding from banks at low interest. The total produced energy from small solar power plants installed on buildings reached 23.5 MW, including 116 stations installed on top of the Egyptian Electricity Holding Company and its subsidiaries buildings producing 2.5MW, in addition to 73 stations producing 13.2MW, and 143 stations operating on Net Metering scheme to generate 7.7MW.

Excerpts:

Demands to launch national initiatives to spread the use of renewable energy like LED bulbs

Onera Systems completes a solar station for a water company in Sinai within two months

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Gas prices continue to decline due to oversupply in world markets https://wwww.dailynewssegypt.com/2019/10/11/gas-prices-continue-to-decline-due-to-oversupply-in-world-markets/ Fri, 11 Oct 2019 05:00:26 +0000 https://wwww.dailynewssegypt.com/?p=710516 US cuts gas rigs to 144, as production reaches 2.39trn scf

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Natural gas prices have collapsed since the beginning of the current fiscal year, even as stock levels remain below average, mainly due to oversupply.

Oil expert Medhat Youssef told Daily News Egypt that gas prices continue to decline in international markets, partly due to geopolitical tensions, but mostly due to natural gas quantities outpacing global demand.

He pointed out that gas prices began to decline when the United States increased its production of shale gas significantly in recent years. This also contributed to a lessening of dependence on natural gas as oil prices declined during this period.

Youssef said that shale gas exploration companies are suffering from financial pressures due to high investment costs, although production of gas rose by about 15% during May.

Additionally, LNG exporting countries have seen their revenues fall sharply due to lower gas prices, nearing the actual production cost of LNG, which includes production, liquefaction, and shipping.

He added that the markets are experiencing seasonal fluctuations, where demand peaks in the winter and then turn to lower levels in the summer. Consumption falls sharply with the start of the spring and autumn months. The LNG prices are also affected by the race between Russia and the United States over increasing gas exports.

If natural gas prices continue to decline in world markets, coal-importing countries will transition to natural gas for industry and power plants due to natural gas’s economic feasibility and its position as a cleaner alternative

Meanwhile, the number of active natural gas rigs in the United States recently dropped to 144, the lowest level since January 2017, compared to 173 in June, after being affected by the glut of supply and the decline in natural gas prices to $2.31 per million BTU.

Natural gas inventories in the United States rose to about 2.39trn cubic feet of gas (scf) in the last week of June, from 89bn scf, due to weak demand and oversupply.

A former chief executive officer at one of the US largest producers of shale gas, said in a previous statement that the situation has become a “total disaster” and is causing continuous losses.

Head of gas market research at Rested Energy also said that Russia and the United States are natural rivals with the fact that they are among the world’s biggest gas producers, but in what appears to be a race to the bottom, not only in the lucrative Asian market but also in Europe.

He added that Russia and the United States sent increased quantities of gas to Europe despite the decline in the price of gas, and that some US exporters do not cover operating costs. However, US exports to Europe in the first half of 2019 increased by 6.9bn scf.

In a related context, a source in the petroleum sector said that Egypt will not be affected by the glut of supply of natural gas in world markets after it reduced its production of gas locally by about one billion cubic feet per day, waiting for the market to stabilise. Egypt moved to export shipments of liquefied gas through liquefaction plants.

He pointed out that Egypt has an infrastructure of a national gas network that allows it to receive and distribute about 9bn scf/day and transport it to all parts of the republic, in addition to Idku and Damietta liquefaction plants of 1.88bn scf/day.

He pointed out that Egypt’s total gas production is currently about 6bn scf/day, which meets the needs of the local market.

It is noteworthy that member countries of the Gas Exporting Countries Forum, accounted for 42% of the total gas production globally, and also owns 70% of the gas resources in the world, and controls 38% of gas trans-pipeline operations and 85% of trade in liquefied natural gas.

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Vestas closest to win Gulf of Suez wind farm tender, Siemens likely excluded https://wwww.dailynewssegypt.com/2019/10/09/vestas-closest-to-win-gulf-of-suez-wind-farm-tender-siemens-likely-excluded/ Wed, 09 Oct 2019 19:13:44 +0000 https://wwww.dailynewssegypt.com/?p=710471 Three companies were competing for the project, including Vestas, Siemens Gamesa, and Senvion.

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The New and Renewable Energy Authority (NREA) asked Vestas to present its financial offer to establish a 250MW wind farm in the Gulf of Suez by 13 October, an informed source told Daily News Egypt.

Three companies were competing for the project, including Vestas, Siemens Gamesa, and Senvion.

In July, the NREA has asked bidding firms to extend the validation of their bids. Vestas agreed, but Siemens refused, while Senvion announced its withdrawal from the project.

Siemens was not notified by the NREA, which means it has been excluded. Therefore, Vestas is the closest to win the tender.

The KfW, a German state-owned development bank, would finance the project with a €260m loan, with the participation of the European Investment Bank, the French Agency for Development, and the EU. The source said that several offers must be made to choose the best.

The sources added that the German company Siemens did not extend the validity of the offer for the tender, and therefore has been excluded and not invited to future negotiations. “This shall not hinder opening the financial offer and awarding the company before the end of this year,” the source said.

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Rosatom floats 20 tenders for facilities and needs of Dabaa Nuclear Plant https://wwww.dailynewssegypt.com/2019/10/09/rosatom-floats-20-tenders-for-facilities-and-needs-of-dabaa-nuclear-plant/ Wed, 09 Oct 2019 06:40:17 +0000 https://wwww.dailynewssegypt.com/?p=710389 Two contracts to be awarded before the end of 2019, company signed contract with Petrojet

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Atomstroyexport, a subsidiary of the Russian state nuclear corporation Rosatom, plans to issue 20 tenders for the implementation of administrative buildings, assembly workshops for units, and fulfilling the requirements of the Dabaa nuclear plant.

Anatoly Kovtunov, director of construction works at Dabaa station, told Daily News Egypt that the tender dates will be sequential and the date of deciding on each tender will be different, noting that the company offered 30 tenders last year.

He added that a contract has been signed with the multidisciplinary contractor Petrojet for the implementation of some works in the project, and the company will sign two other contracts with Egyptian companies before the end of this year.

He explained that the last period, Atomstroyexport of Rosatom offered more than 10 tenders for land grounding, roads, and the supply of some equipment to the project.

He pointed out that the company sent a large number of Egyptian companies in coordination with the Nuclear Power Plants Authority to submit their bids. Several meetings and workshops were held to inform them of the requirements of the current stage and the volume of work. These companies include Orascom Construction, Hassan Allam, Arab Contractors, and Petrojet.

Mohamed Ramadan, director of the nuclear Dabaa project at the Nuclear Power Plants Authority (NPPA), told Daily News Egypt that two tenders for the administrative building and unit assembly workshops at the Dabaa nuclear plant are scheduled to be issued next month. The tenders are offered and decided upon by the Russian company.

He explained that the tender for preparing the land was reoffered again, after being cancelled due to the original tender lacking proper requirements.

He stressed that the NPPA is working to develop the infrastructure of the project, and is working on different aspects of the plant, such as communications, the delivery of facilities for the project, water, and electricity. The cost of the infrastructure to date has reached EGP 4bn.

He confirmed that the Dabaa nuclear plant had obtained the site’s approval on 10 March from the Egyptian Nuclear and Radiological Regulatory Authority.

The authorisation is an acknowledgment that the site and its characteristics conform to the requirements of Egypt and the requirements of the International Atomic Energy Agency, which is reflected in ensuring the safe and reliable operation of nuclear facilities.

On 19 November 2015, Egypt and Russia signed a joint cooperation agreement to establish a nuclear power plant in Dabaa, followed by the signing of several agreements with the Russian partner, and the signing of contracts in December 2017.

The plant consists of four nuclear reactors with a total capacity of 4800 MW, 1200 MW each, with the first reactor to operate by 2026.

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SCZone to deliver 500,000 sqm of Russian industrial zone end-2019 https://wwww.dailynewssegypt.com/2019/10/07/sczone-to-deliver-500000-sqm-of-russian-industrial-zone-end-2019/ Mon, 07 Oct 2019 21:51:45 +0000 https://wwww.dailynewssegypt.com/?p=710240 Negotiations with DP World to develop 40 sqkm in Ain Sokhna

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The Suez Canal Economic Zone (SCZone) plans to deliver 500,000 sqm of the Russian industrial zone by the end of this year.

Yehia Zaki, head of the SCZone, told Daily News Egypt that it was planned to complete the development of 500,000 sqm of land in the Russian industrial zone by March 2020, but the SCZone will intensify its efforts to complete this phase by the end of December 2019.

He explained that there is an understanding between the Egyptian and Russian sides on the implementation of the Russian industrial zone on an area of 5.25 sqkm.

Zaki disclosed that there have been bilateral workshops between both parties on the development and implementation of the Russian industrial zone.

Russia will establish a modern industrial and logistic zone in the Suez Canal region, specifically for the hardware, wood, and pharmaceutical industries.

The industrial zone will be implemented under the usufruct system for 50 years, automatically renewed for five consecutive years if the two sides agree.

Egypt and Russia signed an agreement to establish the Russian industrial zone in May last year. The investments of the 5.25 sqkm zone amounts to $6.9bn, located in East Port Said, which is expected to be delivered over three phases.

He also mentioned the negotiation between the SCZone and DP World to develop 40 sqkm in Ain Sokhna.

The target industries in this region include medical, telecommunications, building materials, logistics, textile, automotive, food, energy, and petrochemicals.

This comes after partnership agreement signed between the two parties during the Youth Forum in Sharm El-Sheikh in November 2017, on the establishment of a major development company in partnership between the SCZone and DP World. Both parties will share the right of management at 51% (SCZone) and 49% (DP World).

A total of 245 companies are set to operate in the southern region, and 43 companies are under licensing, he said.

He added that the current year will witness the completion of the negotiations between the SCZone,  Bolloré, Toyota, and NYK alliance to contract the operation of Roll-on/roll-off (RORO) docks along 600 metres of coastal land with $150m investment.

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Egypt cuts natural gas production by 1bn scf/day after achieving surplus https://wwww.dailynewssegypt.com/2019/10/07/egypt-cuts-natural-gas-production-by-1bn-scf-day-after-achieving-surplus/ Mon, 07 Oct 2019 21:42:42 +0000 https://wwww.dailynewssegypt.com/?p=710239 Local market gas needs fall to 6bn scf, says source

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The Ministry of Petroleum has reduced Egypt’s production of natural gas to about 6bn cubic feet per day (scf/day) from 7bn scf/day due to the decline in domestic market consumption and export.

A source at the Ministry of Petroleum told Daily News Egypt that the country has achieved a surplus in the production of natural gas from different concession areas, estimated at 1bn scf/day, along with the decline of power plants’ gas consumption.

He pointed out that the gas consumption of power plants decreased to about 3.7bn scf/day now, compared to 4.5bn scf/day during the summer, due to lower temperatures, which increased the efficiency of production plants and reduced electricity consumption.

He pointed out that the new gas projects recently linked to production, such as Zohr, Noras, North Alexandria, 9B, and Baltim South West fields, contributed to the rise of Egypt’s gas production at unprecedented rates.

The source added that Egypt’s natural gas production is expected to increase to 7.5bn scf/day during 2019/20.

The source pointed out that the rate of consumption of natural gas in the domestic market is growing annually, according to the industrial and urban development plan along with the increase in the number of cars operating with natural gas.

Power plants’ gas consumption represents 61% of the total consumption, while the rest is split between industry, household, and automotive sectors.

The source said that the rate of domestic gas consumption will rise gradually to 7bn scf/day during the next fiscal year (FY) 2020/21, compared to about 6.2bn scf/day in FY 2019/20.

The average gas consumption in the domestic market will rise to about 9bn scf/day by FY 2020/21, according to the industrial development plan. This will also lead to increasing the productive capacity and gas delivery to homes and the conversion of more cars to run on gas instead of petroleum.

The plan of the Ministry of Petroleum aims to complete the implementation of the Zohr, North Alexandria, and Burullus fields, to contribute to increase domestic production and cover consumption rates.

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Production of Burullus, Rashid fields increase to 290m scf/day https://wwww.dailynewssegypt.com/2019/10/06/production-of-burullus-rashid-fields-increase-to-290m-scf-day/ Sun, 06 Oct 2019 20:46:06 +0000 https://ww.dailynewssegypt.com/?p=710105 Linking 80m cubic feet from the second well in stage 9B, according to industry sources

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Dutch Shell’s output from the Burullus and Rashid fields in the Mediterranean waters rose to 290m cubic feet per day (scf/day) up from scf/day of natural gas last month.

A source at the Egyptian Natural Gas Holding Company (EGAS) said that 80m scf/day from the second well of phase 9B in Burullus field has been completed, compensating for the natural decline.

He pointed out that the rate of natural decline in the productivity of Burullus and Rashid owned by the Dutch Shell is estimated at about 10m cubic feet of gas per month, due to the aging of wells and delays in the completion of development plans.

The source added that the maximum rate of production per well in phase 9B is 100m scf/day, which contributes to increasing production rates and compensates for the rate of natural decline.

The project includes eight production wells and two exploration wells. The linking of the second part of phase 9B will be completed in the coming fiscal year.

He pointed out that Shell is seeking to increase the production of Burullus and Rashid to about 320m scf/day by the end of the current fiscal year, compared with 290m scf/day.

He pointed out that the Egyptian General Petroleum Corporation pays $3.1 per one million thermal units of Shell’s share of natural gas produced from phase 9B in the fields of Burullus.

The Dutch Shell has allocated about $500m in investments during 2019/20, to implement several such as phase 9B project and the construction of a pipeline to link gas fields west of the Delta.

The proven reserves of Burullus fields in all stages and fields are estimated at about 5trn cubic feet of gas and about 55m barrels of oil condensate.

The source said that the maximum production capacity per well in phase 9B in the fields of Burullus is 50m scf/day.

The Ministry of Petroleum aims to increase the productivity of existing gas fields and complete the development of the discovered gas fields and accelerate the pace of work in order to put them on the production map, which contributes to the natural decline in the productivity of the old fields in addition to increasing the production rates of Egypt’s natural gas.

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12 companies qualify to implement solar power plants in NAC https://wwww.dailynewssegypt.com/2019/10/06/12-companies-qualify-to-implement-solar-power-plants-in-nac/ Sun, 06 Oct 2019 20:29:35 +0000 https://ww.dailynewssegypt.com/?p=710103 The list includes Orascom, El Sewedy, Infinity, Ibn Omairah, and Light Source, companies to submit bids on 16 October

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Twelve companies have qualified to install solar cells on the roofs of 64 buildings in the new administrative capital (NAC).

Informed sources told Daily News Egypt that the list of eligible companies includes ARE group, LG Electric, Gama, Orascom, Arab Organization for Industrialisation, Lightsource, Ibn Omairah, China State Construction Engineering Corporation (CCEC), Infinity solar, El Sewedy Electric, and Edra Energy.

Eligible companies were invited to submit technical and financial bids for the installation of 15 MW solar power plants in government buildings in the NAC on 16 October, the sources said, with companies submitting two closed envelopes, one technical and one financial.

The sources pointed out that it is expected to assign the implementation of the stations to more than one company, according to the financial envelope value each company submits. The New Administrative Capital Urban Development Company announced the tender for the installation of solar cells on the roofs of the capital buildings as part of its plan to rely on clean electricity.

The company cooperates in the tender with the United Nations Development Program (UNDP) and its invitation is limited to international and local companies of the first category specialised in manufacturing, assembling, or developing solar cell projects connected to the network.

The sources pointed out that the administrative capital company cooperated with one of the consulting offices to prepare a short list eligible for implementation after studying the file of each company.

The NAC covers an area of 170,000 feddan and is expected to accommodate a population density of 18 to 40 million by 2050. It is located on the borders of Badr City in the area between Cairo-Suez and Cairo-Ain Sokhna roads after New Cairo, Future City, and Madinaty, projects about 60 km from Ain Sokhna and Suez.

The area of the first phase of the NAC is 40,000 feddan, which includes a number of residential, commercial, administrative projects, a governmental district, a diplomatic district, and a business and financial district.

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Israeli gas exports to Egypt to increase to 85.3 bcm over 15 years https://wwww.dailynewssegypt.com/2019/10/03/israeli-gas-exports-to-egypt-to-increase-to-85-3-bcm-over-15-years/ Thu, 03 Oct 2019 05:30:38 +0000 https://ww.dailynewssegypt.com/?p=709885 Exports from Leviathan to start 1 January 2020, from Tamar to start on 30 June 2020

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Israeli gas exports to Egypt to remarkably increase by 21.3bn cubic meters (bcm) (751.98bn cubic feet) to record a total of 85.3 bcm over 15 years, Delek Drilling and Noble Energy announced on Wednesday.

In 2018, two 10-year agreements worth $15bn to export Israeli natural gas to Egypt were signed. The agreements between Delek Drilling and Noble Energy—the operators of Israel’s largest natural gas fields Tamar and Leviathan—and the Egyptian company Dolphinus Holdings, to supply Egypt with 64 bcm of gas.

Under the amended agreement, the companies said the amount to be sold from the Leviathan field will nearly double to 60 bcm, up from the 32 bcm originally contracted of gas over 15 years. While exports from the nearby Tamar field will be reduced to 25.3 bcm from 32 bcm over the same period.

According to the agreement, gas exports from Leviathan will start on 1 January 2020, and will continue until 31 December 2034 or until the supply of the full contractual quantities of gas. While the exports from Tamar will start on 30 June 2020 and will continue until 31 December 2034.

The documents issued by the two companies showed that 2.1 bcm to be exported from Leviathan.

From 1 January 2020 to 30 June 2020, and from 1 July 2020 to 30 June 2022 around 3.6 bcm per year, and finally from 1 July 2022 to the agreement termination date approximately 4.7 bcm per year.

In Tamar’s case, 1 bcm per year to be exported from 30 June 2020 till 30 June 2022, and in the period beginning on 1 July 2022 to the Tamar agreement termination date approximately 2 bcm per year.

The document shows that in case that Dolphinus does not purchase the total contractual quantity set forth under agreements, the two companies shall be entitled to extend the supply period by up to two additional years.

Egypt aims to turn into a regional gas hub, through exploiting the country’s LNG plants in Idku and Damietta, through importing gas from Israel and Cyprus and re-exporting them to other markets. Both Cyprus and Israel need Egypt, as it already has all the necessary infrastructure in place.

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Government stabilises fuel prices as hedging contracts defy oil fluctuations https://wwww.dailynewssegypt.com/2019/10/01/government-stabilises-fuel-prices-as-hedging-contracts-defy-oil-fluctuations/ Tue, 01 Oct 2019 19:05:08 +0000 https://ww.dailynewssegypt.com/?p=709776 A government source told Daily News Egypt that the government has fixed the prices of petroleum products, in parallel with fixing the value of hedging against price fluctuations, which protects the state budget from bearing any additional burdens.

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The Egyptian government is seeking to stabilise the prices of petroleum products in the domestic market, for the next three months. It comes amid the stability of the value of hedging contracts against the rise of oil prices on the world market signed at the beginning of the second quarter of this fiscal year 2019/20, at a price below $65 per barrel.

A government source told Daily News Egypt that the government has fixed the prices of petroleum products, in parallel with fixing the value of hedging against price fluctuations, which protects the state budget from bearing any additional burdens.

He added that the Petroleum Pricing Committee determines the values of petroleum materials according to several factors, namely the cost of providing domestic production and the value of hedging against oil price fluctuations and the exchange rate.

The current prices of petroleum products are EGP 8 per litre for octane-92 petrol, EGP 6.75 for octane-80 petrol, EGP 9 for octane-95, and EGP 6.75 for diesel.

The price of LPG cylinders is estimated at EGP 65 for household use and EGP 130 for commercial use.

The government kept the fuel oil price for food and electricity industries unchanged.

The source pointed out that Egypt was not affected by the sudden rise in oil prices after the events of Saudi Aramco, as it has contracts hedging against high oil prices in world markets, to secure the needs of the market of petroleum and crude oil.

The committee will follow up the automatic pricing of petroleum materials, reviews the price formula on a quarterly basis, with a change cap of 10%, so that the sale price of petroleum products is linked to the domestic market, except for LPG cylinders and petroleum products used by the electricity and bakery sectors.

He pointed out that the price for an oil barrel has fallen below $60 since the beginning of this month, affected by political fluctuations in the region.

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Electricity Ministry cancels Al-Nowais’s Oyoun Mousa power plant agreement https://wwww.dailynewssegypt.com/2019/10/01/electricity-ministry-cancels-al-nowaiss-oyoun-mousa-power-plant-agreement/ Tue, 01 Oct 2019 13:27:26 +0000 https://ww.dailynewssegypt.com/?p=709778 Both sides in negotiation to launch renewable energy projects with 500MW capacity

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The Ministry of Electricity has terminated an agreement with the UAE company Al-Nowais to implement a coal-fired power station in Oyoun Mousa, South Sinai governorate.

Sources at the ministry told Daily News Egypt that the energy surplus achieved in Egypt recently and the cost of the project are the major reasons for canceling the contract with Al-Nowais, especially as the state is currently focusing on the expansion in renewable energy for its lower cost and being environment- friendly.

Daily News Egypt reported in July that the Electricity Ministry is considering revoking the contract with Al-Nowais, and continue the establishment of Hamrawein coal-fired plant, being more feasible financially and technically.

The source added that the Electricity Ministry’s officials informed Al-Nowais officials that there is no need to implement a coal-fired power station at this time and agreed to discuss the implementation of renewable power plants with capacities of up to 500MW.

The Ministry of Electricity is preparing a detailed report to be sent to the cabinet on the UAE company’s requests to invest in renewable energy sector, as well as the circumstance of terminating the Oyoun Mousa plant agreement. Noteworthy, the construction of the plant was already started and Al-Nowais has received the land needed for the coal-fired power station after the cabinet’s approval.

Al-Nowais was contracted to implement a 2.6GW coal-fired power plant in Oyoun Mousa in September 2014. AS per this contract, Al-Nowais launched two companies, one for the management and operation of the plant, and the other to carry out the logistics tasks.

In light of the project’s presence in Sinai, and in accordance with the provisions of Law No. 14 of 2012, on integrated development in the Sinai Peninsula, Egyptians’ share of any company operating in this area should not be less than 55%. Al-Nowais was exempted from this law after requesting an exception for the project’s two companies.

The presidential decree No. 235 of 2016 exempted the two companies from this law, to implement the project while abiding by the additional provisions and regulations of Decree Law No. 14 of 2012, on the development of the Sinai Peninsula, allowing the two companies to have 100% foreign capital.

There have been many discussions over the past five years on the technical, financial, and legal aspects of the project, in the presence of Minister of Electricity, Mohamed Shaker, and officials of the UAE company.

The sources said that the state currently focuses on producing renewable energy, where the price of producing energy from solar plants is about 2.79 piasters per kw, and 3 piasters for wind-generated power, while the price offered by Al-Nowais was 4.1 piasters.

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Production testing of Zohr’s 13th gas well likely to start next week: source https://wwww.dailynewssegypt.com/2019/09/30/production-testing-of-zohrs-13th-gas-well-likely-to-start-next-week-source/ Mon, 30 Sep 2019 14:44:44 +0000 https://ww.dailynewssegypt.com/?p=709582 Gas consumption by power plants down by 500m scf/day, say source

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Italy’s Eni seeks to start the production testing of the 13th well in the deep-water Zohr gas field in the Mediterranean, next week.

A source in the petroleum sector told Daily News Egypt that production from other wells in the field will be reduced until the testing operation of the 13th well is completed, which has a production rate of 150-250m cubic feet per day (scf/day).

He added that the Ministry of Petroleum fully meets the natural gas needs of power plants, factories, cars, and household, and even directed shipments of liquefied gas for export. The source asserted that the sector does not need additional quantities of gas, especially in light of the reduction of gas consumption by power plants by about 500m scf/day.

Moreover, the 14th well in Zohr is expected to be linked to production before the end of this year, with the total field production exceeding 3bn scf/day.

The results of Petro Sharq, the company responsible for managing the development of Zohr, showed that 2018/19 saw the drilling of seven wells, bringing the total number of wells that have been linked to production to 12 wells, and the completion of the onshore processing plant construction eight months ahead of schedule. The company operated the plant’s production units 5, 6, and 7 in February, March, and April 2019, respectively, bringing the total capacity of the plant to 3.2bn scf/day.

The results also included the total investments of the Zohr field development project so far, amounting to about $10.6bn, of which $3bn during the year.

The source pointed out that operating expenses amounted to about $49m, saving 55% of the approved budget with an increase in production quantities to 122% of the approved plan.

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NREA holds first roundtable on renewable energy investment in Egypt https://wwww.dailynewssegypt.com/2019/09/25/nrea-holds-first-roundtable-on-renewable-energy-investment-in-egypt/ Wed, 25 Sep 2019 16:34:50 +0000 https://ww.dailynewssegypt.com/?p=709047 Authority receive requests to implement 10GW projects in feed-in tariff programme, says El-Khayyat

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Mohamed El-Khayyat, chairperson of the New and Renewable Energy Authority (NREA), inaugurated on Tuesday the first roundtable on renewable energy investment and sustainable development in Egypt, organised by Media Avenue.

The roundtable was attended by Mohamed Salah El-Sobky, former NREA chief; Hend Farouh, director of Small Scale Photovoltaic Systems; Ahmed Zahran, executive director of KarmSolar, Sherif El Gabaly, president of the Egyptian Junior Business Association (EJB) and Enara Capital; Mennatallah Sadek, CEO of Hassan Allam Utilities; Soraya Hassan, Business Development Manager at Infinity Solar; Hossam Allam, CEO of Hassan Allam services; and Hassan Amin, regional director of Acwa Power.

Mohamed El-Khayyat

The first session of the roundtable discussed the future of renewable energy after the feed-in tariff projects, and the benefits of launching the largest solar gathering in the world for the Egyptian market. It also discussed the economic and social impact of Benban solar complex in Aswan, after the completion of sustainable development plans and waste treatment.

The session, moderated by Mohamed El-Sobky, shed light on Egypt’s vision for development, and the strategy of diversifying the sources of energy production. It also tackled ways to provide incentives and legislation that contribute to the acceleration of renewable energy growth rates, as well as the challenges facing the sector and their impact on investment opportunities.

The attendees discussed the mechanisms of transforming Egypt as an energy producer, opening new horizons for the private sector in investment, the problem of providing land for the implementation of new projects, the government’s plan to buy energy from the private sector in light of the availability of electric power reserves, and local manufacturing methods for solar energy missions and components. They also discussed investment opportunities, the future of wind energy projects in Egypt, the role of banks in financing stations, and ways of lending companies to carry out other projects.

El-Khayyat said the renewable energy market in Egypt started in 1986, and succeeded in attracting the confidence of a large number of investors as it signed agreements to purchase energy with 32 companies with a total capacity up to 1,465MW.

He added that after the launch of new energy projects within the feed-in tariff programme, the NREA has received applications for production of 10GW. He explained that 30 companies are currently working in the Benban Solar Park, with only two stations underway.

“We implemented eight wind power projects with a total capacity of 545MW, including the Zaafarana complex project and Jabal al-Zeit complex,” he elaborated.

With regards to private sector participation, he explained that the idea started after the issuance of Law No. 203 for 2014 to regulate the relationship between the bodies working in the new and renewable energy sector.

El-Khayyat said that despite the fear of investors of investing in the new energy sector, they received requests for the implementation of projects with capacity of 10GW, five times the government’s target, immediately after the announcement of the feed-in tariff projects.

Moreover, the NREA aims to produce 2GW solar cells, El-Khayyat revealed.

“Egypt remains an attractive market for foreign investment in the renewable energy sector, which will enable us to achieve our goals,” he stated.

El-Khayyat said that most of the Benban projects are relatively large, with capacities ranging from 200 to 250MW, emphasising the need to work on relatively medium and small projects as well.

In response, El-Sobky said that despite the establishment of large projects, the country is currently moving to support small and medium enterprises in the new energy sector.

Mohamed Salah El-Sobky

Small Scale Photovoltaic Systems

The Small Scale Photovoltaic Systems project aimed at removing obstacles faced by solar energy producers, and it is being implemented in conjunction with the country’s plan to open the market for large projects, which is also reflected in attracting small projects, according to Hend Farouh, the project’s director.

The Small Scale Photovoltaic Systems is implemented by the United Nations Development Programme (UNDP) and the Industrial Modernization Centre (IMC), and funded by the Global Environment Facility (GEF). The project aims to promote the installation of small scale PV systems on roof tops of residential, public, commercial and industrial buildings which are connected to the grid.

“Last and current year, we have been working to remove financial obstacles, and we have implemented projects with a capacity of 8.25MW, through 133 stations, each 5-500kW allocated to residential and commercial areas, hotels, industrial, and some public buildings,” Farouh said.

She pointed out that the market has become open for small scale PV systems, but the government is still working on providing easy financing mechanisms, since the small projects are mainly dedicated to the household sector.

“The main objective of the project is to create pilot models for citizens wishing to invest in clean and renewable energy,” Farouh said.

In 2018, the project was providing about $250 per kW, but currently the situation is different, and many people are requesting technical rather than financial support, and provide quarterly reports.

She said that some of the small scale PV systems on roof tops of hotels produced more energy than predicted during the design phase, and proved to be much cheaper than traditional energy, which has encouraged many potential buyers to request installation of solar panels at their establishments.

She continued that they trained 178 engineers in the banking, engineering, and consulting sectors.

Renewable energy feed-in tariffs

Ahmed Zahran, co-founder and CEO of KarmSolar, said his company was one of the pioneers in small scale feed-in tariff projects.

He added that KarmSolar is currently working on a new energy project with a capacity of 12MW and is expected to increase to 30MW by the end of the year.

He pointed out that financing small and medium sized enterprises operating in the solar power sector in the Middle East, is still a new criteria for financing bodies, especially that the energy buyers are from the private sector. When the energy buyers are government bodies, the financing process will be much easier, as it represents a guarantee for financing.

He stated that the first project to sell energy to the private sector was for Juhayna, and was financed by the Social Fund for Development. Zahran pointed out that the sector was facing financing problems at the beginning, but the accumulation of projects provided more experience for banks and gaining financing approvals for renewable energy projects became faster.

Hend Farouh

Future of investment in large energy projects

Hassan Amin, regional director of Acwa Power, said the company operates in 12 countries with total investments of $35bn and total output of more than 28GW.

He said that the renewable energy sector went through different stages, the first energy shortage, and since moved on to the surplus stage.

“To avoid the trap of energy shortage in the next ten years, we need a plan to increase production by 20% based on the real needs of the market. By 2024, we will need to increase the capacity of the national grid,” he said.

Amin attributed the need for upgrading the national grid to the obsolescence of some stations, in addition to the need to absorb the newly produced capacities.

“Renewable energy is the future, but that does not mean abandoning conventional energy,” he noted. The implementation of Benban project was not an easy journey, he continued.

He added that the plan, which was put in effect, attracted more than 30 investors in the Benban project, despite the challenges that Egypt initially faced, especially at the organisational level.

New comers in energy sector

Sherif El Gabaly, chairperson of Enara Capital, said what was achieved in the Benban project is much more than just producing energy. It has increase the confidence of companies to invest in the renewable energy sector in Egypt, especially in their negotiations with banks to finance projects.

He explained that his company implemented 180MW projects in the Benban Solar Park in cooperation with Spanish company Acciona. The company has completed some of these projects with a total capacity of about 800MW so far.

El Gabaly pointed out that his company is expanding in emerging markets, where the company has completed new projects with a total capacity of 50MW in Kazakhstan, thanks to Benban.

He stressed that the challenge in Egypt is to restructure the electricity sector, a process that began in 2014 with lifting subsidies.

He pointed out that the level of cooperation between energy companies would not have occurred without the Benban project, which increased the market’s size and contributed to increasing the demand for this type of energy, with the help of the Ministry of Electricity in particular.

Ahmed Zahran

Benban Solar Park: story of success

Soraya Hassan, Business Development Manager at Infinity Solar, said that the sector is facing daily challenges. She added that the presence of specialists and experts in the sector gives it hope to continue and solve more common challenges between government agencies, financial institutions, and private entrepreneurs.

She added that the first phase of the project was some of the most difficult times the company had to go through, but getting success stories means facing the challenges well. In the first and second phase of the work, “we faced challenges in the implementation of 30 projects as per the agreed schedule with government agencies.”

She noted that the funding challenges were always the most difficult part of any project, as it was a separate side with its own risk management.

Hassan stated that the company started 13 projects with one financing institution, then implemented 16 others with another institution, which shows the amount of risks that are faced by the company and the financing institutions.

Mennatallah Sadek, CEO of Hassan Allam Utilities, said that Benban is the only project that involved Egyptians in its implementation. Hassan Allam Utilities, in cooperation with another company, implemented a 50MW project in the second phase of the Benban project..

The company is working with a British company, 43% stake of which is owned by BP, the third largest developer in the world, and the first in Europe, which aims to produce 10GW by 2023.

She added that the Egyptian market recently saw some confusion, but a company such as Hassan Allam proved that the market is good. Another evident is the investments of BP, which has been one of the largest investors in Egypt in the last three years.

Moreover, Hossam Allam, CEO of Hassan Allam Services, said his company has a regulatory role in the Benban project, and worked through three departments to organise the project’s logistics. The first included providing 20,000 trucks and waste management of the project. The second department was concerned with maintaining international rules in terms of industrial security. The third is the coordination and communication with civil society about the project, especially in the village of Benban, which has a population of 20,000 citizens, where they organised 23 meetings, and met about 1,400 citizens.

He added that the project created over 10,000 jobs, and that contractors in Egypt have gained good experience in this period.

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Egypt’s 1st Renewable Energy Roundtable tackles sector’s investment opportunities, challenges https://wwww.dailynewssegypt.com/2019/09/25/egypts-1st-renewable-energy-roundtable-tackles-sectors-investment-opportunities-challenges/ Wed, 25 Sep 2019 13:42:38 +0000 https://ww.dailynewssegypt.com/?p=709058 Media Avenue honoured leading companies, most influential figures in the renewable energy sector 

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The New and Renewable Energy Authority (NREA), held the first roundtable on renewable energy investment and sustainable development in Egypt on Tuesday, organised by Media Avenue.

The roundtable was attended by Mohamed Salah El-Sobky, former NREA chief; Hend Farouh, director of Small Scale Photovoltaic Systems; Ahmed Zahran, executive director of KarmSolar, Sherif El Gabaly, president of the Egyptian Junior Business Association (EJB) and Enara Capital; Mennatallah Sadek, CEO of Hassan Allam Utilities; Soraya Hassan, Business Development Manager at Infinity Solar; Hossam Allam, CEO of Hassan Allam services; and Hassan Amin, regional director of Acwa Power. 

The first session of the roundtable discussed the future of renewable energy after the feed-in tariff projects and the benefits of launching the largest solar gathering in the world for the Egyptian market. While the second session tackled the investment opportunities in renewable energy and sustainable development, electricity transmission, production and distribution. 

Media Avenue honoured the leading companies in the field of renewable energy and the most influential figures in the sector on the sidelines of the round table held on Tuesday.

 

According to Media Avenue, “the honouring comes out of our belief of the role of the government, represented in the Ministry of Electricity, in attracting Arab and foreign companies to invest in Egypt, and to achieve added value to the Egyptian economy in cooperation with international financing institutions which funded many renewable energy projects.

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Benban Solar Park: a success story by public, private sectors https://wwww.dailynewssegypt.com/2019/09/24/benban-solar-park-a-success-story-by-public-private-sectors/ Tue, 24 Sep 2019 18:21:57 +0000 https://ww.dailynewssegypt.com/?p=709004 A hundred companies contributed to project with total investments of $2bn, to output 1.4GW of solar energy

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It took Egypt five years to become the favourite destination of investment in renewable energy. Arab and foreign companies are now racing to establish solar power plants and wind farms, and are always on the lookout for an opportunity to pump further investments in the renewable energy sector.

The Benban Solar Park in Aswan can be seen as a success story by the government and the private sector. It became a model for many foreign companies that intend to invest in Egypt. The giant project involved a hundred Egyptian companies, and created about 640 permanent jobs besides 18,000 temporary ones.

The Banban project is not just a project in Egypt, but an interdependent government venture which received support from the ministries of electricity and investment, as well as international financing institutions. It also delivered a positive image about Egypt and its support of investors.

Recently, companies willing to invest in renewable energy have asked for land from the New and Renewable Energy Authority (NREA) to set up projects worth $3bn. Other investors are discussing with existing companies in Benban to acquire their projects.

The total capacity of solar power projects in Benban reached about 1,465MW. Thirty-two companies established energy projects in the solar park with total investments of about $2bn.

Lessons learned from Benban project, and steps to follow

Hafez Salmawy, professor of energy engineering, Zagazig University, and former head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA), said the feed-in tariff projects in Benban constituted about 15% of investment flows into Egypt, and proved the attractiveness of investment in the energy sector. It also showed that investment exists when clear rules and regulations are set.

He added that the business community responded quickly, and formed partnerships and alliances with international companies to compete for the implementation of renewable energy projects in Egypt. “Renewable energy can beat the petroleum sector and attract Arab and international companies to invest in Egypt,” Salmawy said.

He pointed out that the Benban project created a new market as it encouraged several factories to establish production or assembly lines of solar cells in Egypt. This will enhance Egypt’s competitiveness and enable Egyptian factories to export to African markets.

Salmawy noted that Egypt managed to end the long-time crisis of power shortage and shifted from depending on a single source to producing electricity to an energy mix.

“We need, in the coming period, to continue attracting foreign companies to implement projects in the energy sector in Egypt. The government should define a clear plan every three or four years on the opportunities and projects to be implemented,” he urged.

Investors should also engage in the preparation of such plans so that they can be achievable, in addition to updating the regulatory and legal system to cope with global developments, Salmawy stressed.

Moreover, Mohamed Salah El-Sobky, former head of the NREA, said the future of solar energy is promising and there are many opportunities for investment, but it requires clear rules to regulate the process.

He described the Benban project as an achievement and partial recovery of the sector, as it still requires the full activation of the Electricity Law. “Current rules are not clear enough, and should be put into effect,” he added.

El-Sobky further added that contractual relations in Benban have been of great benefit for all parties, as they witnessed technical, financial, and legal improvements. The coming period will see better contracts and agreements based on the experience gained from the feed-in tariff projects.

Meanwhile, Hossam Allam, CEO of Hassan Allam Services, said the Benban solar complex gave his company a great experience in managing services, security, safety, and occupational safety procedures, as well as setting rules and regulations governing work inside solar projects.

He stressed that the Benban complex is a great success story that we need to repeat in similar projects.

Allam noted that his company met with more than 23 families and tribes from Aswan, and explained to them the importance of the project and its economic impact on the governorate, adding that they were indeed an element of success.

Investors await new regulations of electricity direct selling by private sector

The most important part of the success story of Benban is the ability of Arab and foreign companies to invest in Egypt and the government’s commitment to buy electricity produced from these projects for 25 years, which gained the confidence of international financing institutions and international companies.

Hassan Amin, country director of Acwa Power Egypt, said the solar complex in Benban provided many jobs and contributed to the preparation of Egyptian engineers and technicians to efficiently work in the field of solar energy.

He added that Acwa Power has implemented three solar stations with a total capacity of 120MW within the feed-in tariff programme. The company is also awaiting the contract for the construction of a solar plant in Kom Ombo with a capacity of 200MW.

He pointed out that Egypt’s political and economic stability helped improve the investment climate and reassured investors, stressing that many companies seek to implement renewable energy projects in Egypt. Amin noted that opening the market for the private sector decreased energy sale prices. He stressed that the serious steps taken by the state in the framework of economic reform, including the liberalisation of the exchange rate and the restructuring of subsidies, contributed to improving the investment and legislative environment. In addition, the New Investment Law granted many benefits to investors represented in some tax exemptions.

Hisham El-Gamal, head of public relations and communications at Infinity Solar, said after the issuance of the Renewable Energy Law and the feed-in tariff programme, the company became confident in the government’s vision and willingness to implement renewable energy projects. Hence, Infinity was the first company to implement a solar plant in the programme’s first phase.

He added that the company will continue to invest in the renewable energy sector in Egypt, however it needs more acceleration of procedures, offering of more lands, and issuing clear regulations governing the establishment of renewable energy plants and the direct selling of electricity by the private sector under the IPP scheme.

“Infinity Solar aims to set up a plant with a capacity of 100MW and investments of up to $100m in its first phase, and then bring up the total capacity to 300MW. But we are waiting for the executive regulations of direct selling of electricity by the private sector,” El-Gamal said.

He explained that the company plans to expand in the construction of renewable power plants under the IPP scheme next year, with financing from the international banks which previously financed the company’s projects in the feed-in tariff programme.

Finally, Al-Fanar CEO, Gamal Wady, revealed that his company aims to launch a wind power plant with up to $200m investments. The financing will be arranged after reaching an agreement with the Egyptian Electricity Transmission Company to implement the project.

“The company aims to implement projects under the IPP scheme to sell electricity directly and pay fees for using the national grid. When the legislations and rules are completed, the company will invest in several projects, given that Saudi Arabia has many projects working under this scheme,” Wady said.

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Solar Installer finalising 500MW solar panel plant in North Suez Gulf https://wwww.dailynewssegypt.com/2019/09/23/solar-installer-finalising-500mw-solar-panel-plant-in-north-suez-gulf/ Mon, 23 Sep 2019 13:31:29 +0000 https://ww.dailynewssegypt.com/?p=708799 Solar Installer aims to increase the capacity of this portfolio from 350MW to 1.3GW in 2019/20, after completion of its projects at Benban.

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Solar Installer, specialised in solar PV and EPC services, is close to completing the construction of a solar panel plant in the North Suez Gulf Industrial Zone. The plant is scheduled to begin operating by mid-2020 with an annual capacity of 500MW.

Group CEO at Solar Installer, Abdallah Mahgoub, said the company has completed its projects in the Benban Solar Park in Aswan governorate, with a total capacity of 200MW.

Mahgoub pointed out that his company finalised its projects in Benban within seven months. The capacity of the company’s solar portfolio reached 250MW in medium and utility scale projects in 2018.

Solar Installer aims to increase the capacity of this portfolio from 350MW to 1.3GW in 2019/20, after completion of its projects at Benban.

The Benban Solar Park is the largest solar power plant complex in the Middle East and Africa. It aims to increase clean energy production, provide electricity for citizens, create jobs for young people, and prevent 2m tonnes of carbon emissions annually.

According to the Egyptian Cabinet, the Benban project includes 32 solar plants with a total capacity of about 1.4GW, equivalent to 90% of the energy produced from the high dam. The project offered 10,000 direct and indirect jobs.

Solar Installer has participated in the Global Summit on Market Innovation and Development, hosted by Chint Group, China’s leading smart energy solution provider, held in Wenzhou on 9-11 September. It focused on global energy and smart interconnection.

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German Intec wins consultant contract for construction of Zafarana solar power plant https://wwww.dailynewssegypt.com/2019/09/20/german-intec-wins-consultant-contract-for-construction-of-zafarana-solar-power-plant/ Thu, 19 Sep 2019 22:45:59 +0000 https://ww.dailynewssegypt.com/?p=708482 Three companies, including Belectric, NARI Group Corporation, and Vikram Solar, technically qualified and two companies were excluded, one for technical reasons and the other withdrew.

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The New and Renewable Energy Authority (NREA) signed a contract to implement consultancy services for a solar power plant in Zafarana with the German company Intec.

NREA Chairperson, Mohamed El-Khayat, told Daily News Egypt that the German company was contracted after its technical and financial offers outperformed other bids in a tender put forward by the NREA. The company will carry out consultancy services and supervise the implementation of the photovoltaic cell plant in Zafarana with a capacity of 50MW.

He added that the German Development Bank(KfW) is financing the project with a soft loan of €50m, and is currently finishing the technical and financial analysis for the selection of the implementation contractor, which is expected to be completed by the end of December.

Three companies, including Belectric, NARI Group Corporation, and Vikram Solar, technically qualified and two companies were excluded, one for technical reasons and the other withdrew.

The project is expected to start production and operation in the fourth quarter of next year. This project is expected to contribute to the production of about 90m kW/h per year, achieving savings in fuel of about 18,000 tonnes of oil equivalent annually, and reduce emissions by 50,000 tonnes of carbon dioxide annually.

The Zafarana plant is the second project implemented by the NREA in the framework of its plan to diversify the mix of renewable energy projects with a total installed capacity of 1,375MW of wind power, 1,220MW of photovoltaic cell systems, and 2,830MW of hydro power with a total of 5,425MW, which were implemented through government agreements in addition to projects by the private sector.

The ministry of electricity aims to produce 20% of the country’s energy from new and renewable sources by 2022, and seeks to open the way for the private sector to invest in such projects.

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Oil loses $5 a barrel after Aramco’s announcement of restoring full production https://wwww.dailynewssegypt.com/2019/09/18/oil-loses-5-a-barrel-after-aramcos-announcement-of-restoring-full-production/ Wed, 18 Sep 2019 21:45:33 +0000 https://ww.dailynewssegypt.com/?p=708431 Market to face oil glut in coming period, prices to fall under $60: Source

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Oil prices rapidly declined in global markets, where they lost about $5 per barrel after the announcement of the Saudi Energy Minister of the restoration of full production of  Aramco faster than expected after the terrorist incident.

A source in the petroleum sector told Daily News Egypt that Saudi Arabia was able to curb the sudden rise of oil in the markets after it jumped to about $69 a barrel compared to $60 before the incident. On Monday, the attack on the Saudi oil giant Aramco’s processing facility in Abqaiq lead to a surge of more than 14%. The hike is equivalent to the 1991’s Gulf War.


Saudi Minister of Energy, Prince Abdulaziz Bin Salman, said Aramco will regain full production by the end of this month. The attacks, which were claimed by Iran-backed Houthi rebels in Yemen, immediately led to the disruption of 5.7 million barrels of crude production per day.

Prince Abdulaziz bin Salman said that 11m barrels per day will be produced by the end of September and 12m barrels per day by the end of November.

The source added that the markets will become more stable after the control of the Aramco incident, making the price of oil ranging between $60 and $64 per barrel this month.

He expected oil prices to fall below $60 a barrel by the beginning of next month due to the glut of supply from exporting countries in more quantities than consumption in the world market.

He pointed out that Egypt was not affected by the sudden rise in oil prices because it has hedging contracts against the rise in oil prices on the world market, to secure the market needs of petroleum and crude oil.

The oil price rally fuelled by attacks on production facilities in Saudi Arabia is not sustainable, Commerzbank said on Wednesday, while lowering its 2020 price forecasts, citing deteriorating fundamentals including slowing demand growth.

The bank lowered its Brent forecast for next year by $5 to $60 per barrel while keeping its 2019 outlook unchanged at $65. It also reduced its 2020 forecast for WTI to $57 from $62. Commerzbank forecast WTI to average $58 this year.

The Saudi Energy Minister met with the Chairperson of Saudi Aramco Yasir Al-Rumayyan, and Chief Executive Engineer Amin Al-Nasser, and a number of other officials. During the meeting, they discussed developments in the Saudi oil production after the attacks.

Saturday’s attacks shocked supply, lifting oil prices by about 20% during Monday’s trading.


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Baltim production increases to 100m scf/day https://wwww.dailynewssegypt.com/2019/09/18/baltim-production-increases-to-100m-scf-day/ Wed, 18 Sep 2019 15:23:37 +0000 https://ww.dailynewssegypt.com/?p=708365 The ministry of petroleum said in a statement that the remaining five wells in the field will be developed during the second quarter of next year.

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Italian company Eni increased production of its first well in the Baltim South-West gas field to about 100m cubic feet per day (scf/day) instead of 50m scf/day during the past week. This is a move to increase the company’s production rates and compensate for the natural decline of wells.

The ministry of petroleum confirmed in an official statement yesterday, which was published by Daily News Egypt in its 12 September issue, the gradual production of the first well in the Baltim field.

A source at the Egyptian Natural Gas Holding Company (EGAS) told DNE that the Baltim field contains about six gas wells with an average production of between 75 and 100m scf/day, bringing the total production of the project to 500m scf/day.

The ministry of petroleum said in a statement that the remaining five wells in the field will be developed during the second quarter of next year.

Eni has extended an 18 km, 26-inch offshore line, and 25 km, 26-inch onshore line, and manufactured and installed the offshore production platform within the development work of the Baltim South-West gas field three months ahead of schedule.

The Baltim field is located in Nooros area in the shallow waters of the Nile Delta, 12 km from the coast and 10 km from the Nooros field with an initial production rate of about 100m scf/day through a new offshore production platform connected to the Abu Madi onshore gas station through a 44 km long pipeline.

Tarek El-Molla, Minister of Petroleum and Mineral Resources, received a report on the executive status of the Baltim gas field project and the development of the first well as well as the development timetable.

Noteworthy, the discovery of natural gas in the region of South Baltim, east of the Nile Delta, was announced in June 2016, and is located near the Nooros field, which currently produces more than 1bn scf/day.

British Petroleum holds a 50% stake in the South Baltim development contract, while Eni, through its subsidiary Italian Egyptian Oil Company (IEOC), owns the other 50%. The well was drilled by Petrobel, a joint venture between IEOC and the Egyptian General Petroleum Corporation (EGPC).

The statement of the ministry of petroleum highlighted dividing the production between the EGPC and the contractor (ENI and BP), according to the production sharing ratios set by the oil agreements.

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African Development Bank invests $1.7bn in Egypt’s energy sector since 2007 https://wwww.dailynewssegypt.com/2019/09/17/african-development-bank-invests-1-7bn-in-egypts-energy-sector-since-2007/ Tue, 17 Sep 2019 21:05:30 +0000 https://ww.dailynewssegypt.com/?p=708285 “We seek to implement Sahara Transformation Initiative to produce 10GW,” says Shonibare

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The African Development Bank (AfDB) has invested $1.7bn in Egypt’s energy sector since 2007, said Acting VP, Power, Energy, Climate & Green Growth at the bank, Wale Shonibare, stressing that the Egyptian energy sector is promising and attractive for investment.

It comes during a conference held by the Egyptian Junior Business Association (EJB) on Tuesday.

He added that the bank was able to offer loans to the private sector in a number of low-income African countries at a low interest rate for 25 years, as well as providing technical assistance.

Shonibare continued that Africa needs to install new power networks at an estimated cost of $130m.

On the bank’s initiatives, he said the Sahara Energy Initiative aims to benefit the largest possible number of African countries to produce 10GW over the next 10 years and meet the needs of about 250 million people across the continent.

Meanwhile, Chairperson of the EJB, Sherif El Gabaly, said that the AfDB is of great benefit to companies working in the Egyptian energy sector.

Speaking about the AfDB’s role in supporting the energy sector in Africa and ways of boosting its activities in Egypt, El Gabaly noted that Egypt’s current chairmanship of the African Union offers a strong opportunity to support the sector and enhance investment among member countries.

Deputy Minister of Planning, Follow-up, and Administrative Reform, Ahmed Kamaly, said investments in the field of energy in Egypt increased by 80% to EGP 721bn in fiscal year (FY) 2017/18, compared to EGP 246bn in FY 2011/12.

He added that Egypt achieved its highest growth rates in 10 years, registering 5.6% in FY 2018/19, compared to 2.9% in 2013/14.

According to Kamaly, high growth rates and lower inflation of 7.4% were recorded last August, compared to 17.5% in the previous year, which prompted the Central Bank of Egypt to move toward cutting the interest rate.

He referred to the improvement of economic indicators that led to the decline of unemployment to 8.1% during the first quarter of 2019, compared to 13.2% in 2014.

Furthermore, Kamaly stressed that there is no sustainable development without meeting energy needs, adding that Egypt in 2016 was one of the first countries to adopt the UN Sustainable Development Goals.

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First roundtable on “Investing in Renewable Energy, Sustainable Development” kicks off on 24 September, honouring most influential companies https://wwww.dailynewssegypt.com/2019/09/17/first-roundtable-on-investing-in-renewable-energy-sustainable-development-kicks-off-on-24-september/ Tue, 17 Sep 2019 20:56:54 +0000 https://ww.dailynewssegypt.com/?p=708279 The event’s media sponsors are Forbes Middle East, Daily News Egypt, Al Borsa, Youm 7, and Hapi newspapers, as well as the Economy Plus platform.

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Media Avenue will hold its first roundtable on “Investing in Renewable Energy and Sustainable Development” on 24 September.

The roundtable aims to discuss key themes regarding the private sector and the government’s vision to accelerate renewable energy growth and turn Egypt into a clean energy producer.

Additionally, the roundtable discussion will also present available investment opportunities in electricity and renewable energy projects, and tackle the role of various regulators in creating opportunities for expanding renewables’ production and attracting more Arab and foreign companies to invest in Egypt’s energy sector.

The roundtable will witness the participation of government officials and executives of companies working in solar projects in Benban, Aswan, in addition to experts in electricity and the renewable energy sector.

The event’s media sponsors are Forbes Middle East, Daily News Egypt, Al Borsa, Youm 7, and Hapi newspapers, as well as the Economy Plus platform.

Speakers will address challenges facing the energy sector and its impact on investment opportunities, the government’s plan to purchase energy from the private sector in light of the availability of electricity reserves, and Egypt’s vision for development as well as the strategy for diversifying energy sources.

Furthermore, speakers will also discuss ways to provide incentives and legislations to boost renewable energy sector growth, showcase the experience of the private sector in production and the sale of electricity directly to consumers, boost economic operations of the electrical system, and load management.

Mohammed El-Khayat , the General Manager at the New and Renewable Energy Authority (NREA), Chairwoman of the Egyptian Electricity Transmission Company (EETC), Sabah Mashaly, Chief Investment Officer at Infinity Solar, Teymour Abou Elkheir, and Founder and Chairperson of Enara Group, Sherif EL Gabaly, will participate in the roundtable. In addition, Country Director at ACWA Power, Hassan Amin, former Managing Director of the Egyptian Electric Utility and Consumer Protection Regulatory, Hafez Salmawy, former head of the NREA, Mohamed Salah El-Sobky, CEO at Hassan Allam Utilities, Menatalla Sadek, and President of Egemac, Medhat Ramadan, will also attend.

Moreover, the Undersecretary of State for Research, Planning, and International Cooperation at the Ministry of Electricity, Maha Mostafa Awad, the CEO of Hassan Allam Asset Property Services, Hossam Allam, General Manager of NOSCO, Mohamed Mazen Nadim, and Chairperson and CEO at Ship & C.R.E.W. Egypt, Marwan M El Sammak will also participate.

In celebration of the completion of the solar energy tariff projects in Benban, Aswan, the minister of electricity and the chairperson of the NREA and a number of Egyptian and foreign companies implementing the projects will be honoured.

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EEHC postpones signing Oyoun Moussa coal plant contracts https://wwww.dailynewssegypt.com/2019/09/17/eehc-postpones-signing-oyoun-moussa-coal-plant-contracts/ Tue, 17 Sep 2019 19:11:06 +0000 https://ww.dailynewssegypt.com/?p=708268 Another reason is also the difficulty of establishing a special port to receive coal for the project in the region of Oyoun Moussa, as the water there is very shallow, which requires the construction of the port deeper inside the water, which would raise the total cost of the plant.

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The Egyptian Electricity Holding Company (EEHC) intends to postpone the signing of contracts with the UAE Al Nowais Company for the construction of a coal-fired power plant in the region of Oyoun Moussa indefinitely.

Sources at the ministry of electricity told Daily News Egypt that officials at the UAE company held several meetings with officials from the Egyptian Electricity Transmission Company (EETC) to reach an agreement, but to no avail. It was agreed to postpone the signing of the contracts until the needs are determined according to the state plan until 2030.

The sources pointed out that the surplus of electricity production is the main reason for postponing the signing of the contracts, especially as the reserve of electrical capacity reaches 20,000MW per day and will rise by the end of the year to about 22,000MW after adding the capacities of the Gulf of Suez wind station and the solar projects in Benban.

Another reason is also the difficulty of establishing a special port to receive coal for the project in the region of Oyoun Moussa, as the water there is very shallow, which requires the construction of the port deeper inside the water, which would raise the total cost of the plant.

Talks with the UAE’s Al Nowais started three years ago, and company officials held more than 50 meetings with the EEHC officials to implement a coal-fired power plant in Oyoun Moussa.

The sources pointed out that the studies and documents for the Al-Nowais coal plant project were all transferred to the EETC for review. No new decision has been taken on the projects so far and it will not be signed this year.

The tariff was agreed to cost 4.01 cents per kW/h, and what remains is reviewing legal matters in the contract, but the process may take more time.”

The sources pointed out that the Belgian consultant ‘Tractebel’ attended all the sessions and discussions, and was briefed on all technical, financial, and legal items of the project after receiving them from Al Nowais officials.

According to the sources, the strategy and energy mix involves the implementation of coal-fired power plants. The ministry is currently in negotiations with Shanghai Electric to implement a station in Hamrawein with a capacity of 6,000MW. The contracts are expected to be completed soon.

A public consultation conference was scheduled to be held in El Qoseir to establish the Hamrawein coal station, but the event was postponed a day before, and no new date has been set until now.

The sources pointed out that the electricity ministry included coal-fired electricity projects within its plans for 2022-2027, and it may only include a phase of the Hamrawein project whose implementation would soon begin.

Furthermore, the sources said that the lack of increased demand for energy will push the electricity company to postpone a number of projects it seeks to implement to avoid deteriorating financial burdens.

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Electricity Ministry launches current at Qoseir transformer station, connects it to national grid for 1st time https://wwww.dailynewssegypt.com/2019/09/17/electricity-ministry-launches-current-at-qoseir-transformer-station-connects-it-to-national-grid-for-1st-time/ Tue, 17 Sep 2019 19:05:49 +0000 https://ww.dailynewssegypt.com/?p=708265 EGP 1.7bn investments in development plan of northwest coast of Suez Canal

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The ministry of electricity and renewable energy has launched the 220/66/22/11 kV transformer power plant in El Qoseir. For the first time, the city will be connected to the unified national grid, to ensure electricity supply throughout the country.

The Minister of Electricity and Renewable Energy, Mohamed Shaker, said that the ministry succeeded in creating an ambitious plan for developing the northwest coast of the Suez Canal, including the establishment of the El Qoseir transformer station with the capacity of 66/22 kV voltage, expandable to 220kV, with an investment cost of EGP 170m. This transformer connects the city of El Qoseir to the unified electrical network for the first time.

The plan also includes establishing the Safaga/Qoseir electric line with a length of about 130 km and a 220kV voltage, at an investment cost of about EGP 360m. The expansion of the Safaga plant with two cells of 220 kV voltage comes with an investment cost of about EGP 30m.

Shaker explained that a 220/66/11 kV mobile plant was installed, with an investment cost of about EGP 60m, in addition to starting the establishment of the Qoseir/Marsa Alam/Bernis aerial line, with a length of about 285 km, a voltage of 220 kV, and an investment cost of EGP 1bn.

The Canal Company for Electricity Distribution has also established two 11kV distributors, and extended cables to 3 × 400 sectors with a length of 16 km at a cost of about EGP 48m.

The Egyptian Electricity Transmission Company (EETC) signed a few days ago a contract for the implementation of a transformer station west of Damietta with a voltage of 22/220/500 kV, with a capacity of 720/2mV pack (a) with the alliance of Kharai/NHVS/TAIKAI.

The chairperson of the EETC, Sabah Mashaly, said that the contract includes the project implementation of the West Damietta transformer plant, which comes with a voltage of 22/220/500 kV with a capacity of 720/2mV pack (a), to counteract the increased loads in the Delta region.

She added that the total value of the contract is about EGP 440m. The foreign component of this is financed by IFA, while the local component will be self-funded by the EETC, with an implementation period of up to 12 months from the date of the contract signing.

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Importers of solar energy products required to prove their quality before trading next month https://wwww.dailynewssegypt.com/2019/09/17/importers-of-solar-energy-products-required-to-prove-their-quality-before-trading-next-month/ Tue, 17 Sep 2019 18:20:18 +0000 https://ww.dailynewssegypt.com/?p=708263 Maximum value paid by importer for each container EGP 40,000 to conduct all tests

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The New and Renewable Energy Authority (NREA) will begin implementing a decision to oblige importers of heaters and solar cells to conduct product tests next month.

Government sources told Daily News Egypt that companies importing solar energy products are obliged to conduct product tests at the General Authority for Standards and Quality and the NREA to verify their quality in exchange for paying the concerned laboratories’ testing fees.

The sources explained that the main objective is to ensure the quality and efficiency of products which are imported and installed in Egypt, and issue a certificate of competence if they meet the specifications. In case the products do not get tested, they will be seized and their circulation will be prohibited. Additionally, law penalties will be enforced on all violators.

The decision, issued by the Minister of Trade and Industry Amr Nassar last year gave producers and importers time to adjust their conditions, provided that the employees of the concerned administrative bodies who occupy the position of judicial officers are responsible for proving crimes that contravene the provisions of Resolution No 48 for 1941.

DNE has obtained the price list of tests at the NREA. The maximum price for all tests amounts to EGP 40,000 per container, whether for heaters or solar cells.

The price of the virtual test was EGP 240, EGP 1,800 for the insulation test, EGP 2,100 for the exposure to climatic conditions test, EGP 2,000 for the electrical power measurement, EGP 2,000 for measuring the heat parameters of the solar model, and EGP 2,000 for measuring performance at high temperatures.

The freezing and humidity tests cost EGP 3,450, EGP 10,300 for heat testing, EGP 3,900 for the thermal cycle exposure, EGP 1,700 for the current leakage test for solar models, EGP 1,000 for the electrical lighting test, and EGP 500 for the solar models peeling test.

Chairperson of the NREA, Mohammad El-Khayat, said that a number of importers of heaters and solar cells have been testing their products at the NREA labs for a regular period of time, including the Arab Consultative Office, an agent of Suntech, and the decision will be mandatory and will come into force next month.

He explained that the authority has a laboratory to test all products at the highest level, and the decision aims to ensure the quality of products in Egypt, as well as to avoid causing losses to importers if the specifications do not match or if products were poorly manufactured.

He continued: the prices of tests and inspection are not high, and there are laboratories for testing insulation, freezing, moisture, peeling, etc.

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