Energy – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Thu, 16 Jul 2020 00:13:29 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Schneider Electric Inks $290 Million Deal To Optimize Egypt’s Electricity Network https://wwww.dailynewssegypt.com/2020/07/15/schneider-electric-inks-290-million-deal-to-optimize-egypts-electricity-network/ Wed, 15 Jul 2020 00:08:34 +0000 https://wwww.dailynewssegypt.com/?p=736269 Egyptian Electricity Holding Company, Egypt’s national utility provider, has signed an agreement with Schneider Electric to build four control centers to monitor and optimize the electricity network. The project is worth $290 million.

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Egyptian Electricity Holding Company, Egypt’s national utility provider, has signed an agreement with Schneider Electric to build four control centers to monitor and optimize the electricity network. The project is worth $290 million.

The new centers will help convert the country’s national electric distribution network into a future-ready smart grid.
The four control centers will use Schneider Electric’s Advanced Distribution Management System to monitor, control, and reconfigure the network through the use of big data and artificial intelligence.
The agreement, which was signed this week, also includes more than 12,000 smart ring main units that will be installed throughout the national network.
The project has a timeline of 18 months and will help create a country-wide smart grid to meet the needs of Egypt’s growing population, as well as its industrial development.
Schneider Electric will leverage its EcoStruxure Grid technology to build a future-proof smart grid that will use the power of digital to both automate and optimize the grid’s operations.
Much of the equipment that will be used for the project will be manufactured in Egypt.
“This project is a first of its kind, that will increase the grid’s efficiency and sustainability by deploying smart technologies. It will also help advance the caliber of our engineers and workers, helping them to achieve new and advanced ways of working that will be utilized in the upcoming phases of our grid project,” said Egypt’s Minister of Electricity and Renewable Energy, Mohamed Shaker.

“This smart grid will form the backbone of Egypt’s energy network for decades to come. It’s going to future-proof the country’s electricity requirements and will fast forward the country’s adoption of renewable solutions”, said Caspar Herzberg, president Middle East and Africa at Schneider Electric.

Egypt’s government is looking to significantly increase energy output from renewable sources, to 20% of total supply by 2022, and 42% by 2035.

Energy use through the electricity grid increased 6.5% annually during 2000 and 2014.

The project’s 12,000 smart ring main units will be installed across 10 out of Egypt’s 22 governorates.

It will help to improve energy availability by detecting network faults as soon as they occur, and then reconfiguring the network to ensure stability.

In a statement, Schneider Electric said that the project will reduce maintenance costs, thanks to embedded smart sensors that will transmit data back to the control centers.

Schneider Electric will also upgrade 1,000 distribution points and substations to be able to connect them to the smart grid. The network will be protected by cybersecurity software that is built-in to the hardware. The new smart grid will be able to manage and optimize distributed energy resources, including renewables, and enable new technologies such as microgrids to be connected to the main grid.

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Global oil demand to record historic growth in 2021: OPEC https://wwww.dailynewssegypt.com/2020/07/14/global-oil-demand-to-record-historic-growth-in-2021-opec/ Tue, 14 Jul 2020 15:34:38 +0000 https://wwww.dailynewssegypt.com/?p=736093 While oil demand is still ravaged by COVID-19 crisis, gradual stabilization is expected to begin in Q2 of 2020, prompting cautious growth forecast in 2021

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The Organization of the Petroleum Exporting Countries (OPEC) predicts that global oil demand will register a historic high growth of seven million barrels per day (b/d) in 2021, although it will remain far below the pre-COVID-19 level.
While the oil market is still ravaged by the COVID-19 crisis, gradual stabilization is expected to begin in the second quarter of 2020, prompting cautious forecasts of renewed growth in 2021, according to OPEC’s monthly report published on Tuesday.
The Organization for Economic Cooperation and Development (OECD) and the non-OECD oil producers will contribute around 3.5 million b/d to growth separately in 2021, it said.
Spot crude oil prices continued to rise in June for the second consecutive month, driven by a drop in global oil surplus, further improvements in oil market fundamentals, as well as expectations that the oil market would tighten further in the second quarter of this year, the report said.
OPEC forecasts a 4.7-percent global economic growth in 2021 following a contraction of 3.7 percent this year, assuming that COVID-19 is contained, especially in major economies.

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Egyptian consortium competes in transmission line tenders in Morocco https://wwww.dailynewssegypt.com/2020/07/05/egyptian-consortium-competes-in-transmission-line-tenders-in-morocco/ Sun, 05 Jul 2020 19:55:17 +0000 https://wwww.dailynewssegypt.com/?p=735426 Several tenders already won by consortium in cooperation with local authorities, says Koraytem

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A consortium of Egyptian electrical equipment manufacturers will compete in mid-July for two international tenders, worth EGP 1bn, to implement high and ultra-high voltage transmission lines in Morocco.

Kamal Koraytem, Chairperson of the High Dam Electrical and Industrial Projects Company (Hideleco), one of the parties involved in the consortium, said they seek to take over the two tenders.

He added that cooperation with the Giza Cables Industries is underway to work in several African markets. This consortium has already won several other tenders which required cooperation with the local authorities, most prominently the Ministry of Military Production, to maximise the local production.

Koraytem explained that the consortium won a tender for lighting new complexes in Cairo at a cost of EGP 27m. He also indicated that the Benban/Toshka giant transmission line is currently being implemented at a 500 kV voltage.

About 80% of the Qena/Naga Hammadi line of 220 kV has been completed, and the Hawamdeya transformer station is being built. This is in addition to the 500kV New Hawamdeya transformers has been built.

Koraytem pointed out that 70% of the Tama/Girga power line in Sohag Governorate was completed. Work to establish the Esna-Sebaiya line in Qena Governorate and the Nubaria / Beheira line is underway, as part of projects that were obtained with a business volume of over EGP 500m.

Koraytem said that Hideleco was contracted to purchase the latest wire-tightening machines from Germany at a cost of EGP 17m. These will be used to speed up the completion and implementation of new projects and shorten the time period required for implementation.

He added that work is currently underway to implement medium and low voltage lines to meet the requirements of development and investment projects in Al-Owainat and Toshka.

“Work is underway to renew the electricity transmission lines starting from the Hawamdeya region and add an extension to Upper Egypt, to modernise them at a cost of EGP 120m,” Koraytem said.

“This comes within the state programme to renew all components of the national network in Upper Egypt in the coming years, and start implementing the giant project to renew high and ultra-high voltage lines 500 kV in Upper Egypt,” he added.

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ABB, Hitachi launch $10bn joint power venture https://wwww.dailynewssegypt.com/2020/07/02/abb-hitachi-launch-10bn-joint-power-venture/ Thu, 02 Jul 2020 17:02:37 +0000 https://wwww.dailynewssegypt.com/?p=735223 New company to develop energy networks to meet growing demand for, and increase volume of, renewable energy in electricity system

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Leading technology firms, Hitachi and ABB, have announced the launch of Hitachi ABB Power Grids, with an annual turnover of $10bn.

The launch comes as the two companies completed a joint merger, which will see Hitachi hold 80.1% of the new joint entity, while ABB will maintain the remaining percentage.

The deal reflects the commercial importance placed by the global energy sector on sustainable energy, including facilities, mobility solutions, smart cities, industry and information technology. The two companies are now looking to grow and improve on these capabilities, according to Thursday’s statement.

Hitachi ABB Power Grids will look to develop energy networks to meet the growing demand for, and include a greater volume of, renewable energy within the electricity system.

Claudio Facchin, Head of ABB’s Power Systems Division has been named as CEO of the new company, with Hitachi Executive Vice President Toshikazu Nishino as Chairperson. Hitachi ABB Power Grids will expand Hitachi’s energy solutions business globally as a core part of the company’s Social Innovation Business.

The new entity’s headquarters will remain in Zurich, Switzerland, with the current management team ensuring business continuity. Hitachi ABB Power Grids looks to operate with about 36,000 employees in over 90 countries.

Nishino said that Hitachi’s pioneering digital technologies with world-class energy grid solutions will help the company play an important role in global transformation. It will also look to reduce carbon emissions from energy systems, to provide a sustainable energy future, alongside smart solutions for the most dynamic network.

Nishino added, “It will also contribute to achieving the United Nations Sustainable Development Goal 7, which is to ensure universal access to affordable, reliable and clean energy.”

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Petroleum Minister announces new gold discovery of 1m ounces reserve https://wwww.dailynewssegypt.com/2020/06/30/petroleum-minister-announces-new-gold-discovery-of-1m-ounces-reserve/ Tue, 30 Jun 2020 18:14:50 +0000 https://wwww.dailynewssegypt.com/?p=735043 The reserve, which has a 95% recovery rate, has one of the highest rates of extraction, and with a total $1bn investment over the next 10 years.

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Minister of Petroleum Tarek El Molla has, in a commercial disclosure, announced a new gold discovery of over 1m ounces reserve in the Eastern Desert’s Eiqat region.

The reserve, which has a 95% recovery rate, has one of the highest rates of extraction, and with a total $1bn investment over the next 10 years.

The new disclosure is located in the Shalateen Mineral Resources Company’s concession area. The Wealth and Resources Mining Company undertook the exploration services in the region in accordance with its contract with the former.

The new commercial disclosure is the result of Egyptian investment in the gold exploration and exploitation field by the Shalateen Company. It has witnessed successful partnerships with a number of state sectors, including the Egyptian General Mineral Resources Authority (EMRA), the National Service Projects Authority (NSPO), the National Investment Bank (NIB) and the Egyptian Company for Mineral Resources (ECMR).

A new company will be formed by the Shalateen Mineral Resources Company and EMRA to carry out operations in the exploration area once the required procedures are completed. The new company will be set up to extract gold and accompanying minerals.

El Molla said that, in light of ongoing the mining industry reform programme, Egypt is looking to attract foreign direct investment (FDI) in the next two years estimated at $375m, which is set to rise to $700m-1bn by 2030.

The new discovery of gold coincides with the Ministry of Petroleum’s programme of developing and modernising Egypt’s mining sector to increase its contribution to national production.

Egypt has recently extended the closing date for the first gold exploration tender in 2022, to 15 September, taking into account amendments introduced in March. The closing date for tenders had originally been set for 15 July.

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Energean negotiates a new price for Edison asset deal at $284m https://wwww.dailynewssegypt.com/2020/06/30/energean-negotiates-a-new-price-for-edison-asset-deal-at-284m/ Tue, 30 Jun 2020 12:39:56 +0000 https://wwww.dailynewssegypt.com/?p=734994 Energean will gain operations in Egypt, Italy, UK, Croatia and Malta , while Edison will keep its assets in Algeria and Norway

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Energean announced that it has received a discount for its acquisition of the Edison E&P, paying only $284m, but after working capital, Energean expects to pay just $178m for the acquisition down from the initial $750m value of the deal, the company said in a Monday press release.
The Greek energy company will gain operations in Egypt, Italy, UK, Croatia and Malta with 226 million barrels of equivalent 2P reserves and 2C resources. While Edison will keep its assets in Algeria and Norway.
Energean explained that it expects to pay a contingent payment for its first gas production from Cassiopea if natural gas price is recovered.
In 2019, the Greek company has entered into a conditional sale and purchase agreement to acquire gas exploration for the oil and natural gas unit of the Italian energy group Edison in Egypt, Italy, Algeria, Croatia, and the North Sea off the coast of Britain, Norway, and Greece for $750m.
Both parties have agreed on several amendments to the deal after negotiations, including reducing the value of an acquisition by $466m to become $284m, but after working capital, Energean expects to pay just $178m for the acquisition.
In 2019, Egypt’s Minister of Petroleum and Mineral Resources, Tarek El-Molla, approved in principle to complete the acquisition of oil and natural gas units of the Italian energy group Edison in Egypt by Energean of Greece.

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World Bank praises Egypt’s reducing new electricity connection timeframe to 18 days https://wwww.dailynewssegypt.com/2020/06/27/world-bank-praises-egypts-reducing-new-electricity-connection-timeframe-to-18-days/ Sat, 27 Jun 2020 20:36:31 +0000 https://wwww.dailynewssegypt.com/?p=734646 Electricity Ministry has programme to replace overhead cables with ground cables

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A World Bank delegation has praised the measures taken by Egypt’s Ministry of Electricity to reduce the timeframe for new electricity connections to non-industrial properties.

Egyptians can now expect electricity to be delivered within 18 days from the date of submitting an application. The ministry has also established a special department that serves investors in 6th of October City, alongside a programme to replace overhead cables with ground cables.

Minister of Electricity Mohamed Shaker said various companies in the sector have worked towards raising the electricity network’s efficiency and improve its performance level.

The improvements in Egypt’s provision of electricity ensure the stability and continuity of power supply, in accordance with quality standards, as well as reducing periods of power outages. These efforts have also gone towards meeting the continuous upward trends in the country’s consumption.

Mohamed El Sisi, head of the South Cairo Electricity Distribution Company, said his company has completed various expansion, replacement and renewal projects in the Giza network, which serves about 4.3 million subscribers.

Coming in at a total cost of EGP 436m, the company’s efforts are looking to raise the efficiency of the governorate’s electricity network and improve service for subscribers.

El Sisi noted that 85 power transformers and 267 low voltage boxes have been installed, alongside 105 km of medium voltage cables and over 81km of low voltage cables.

Regarding the plan to replace overhead cables with ground cables, he noted that a total of EGP 33m has been invested to replace medium voltage cables, which represent a risk to citizens, with ground cables.

El Sisi stated that the company is also working towards speeding up procedures for customers through a one-stop shop. This will also ensure that all precautions are taken to confront the novel coronavirus (COVID-19), with continuous sterilisation in place to preserve the health and safety of customers and workers.

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80% of Karish and Tanin development in Mediterranean completed: Energean https://wwww.dailynewssegypt.com/2020/06/24/80-of-karish-and-tanin-pipe-laying-works-in-mediterranean-completed-energean/ Tue, 23 Jun 2020 23:27:15 +0000 https://wwww.dailynewssegypt.com/?p=734328 Project begins in Q4 of 2020

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Energean has announced the completion of pipe laying and subsea systems installation works  and 80% of the project in the Karish and Tanin offshore gas development in the Mediterranean Sea.

The Greek oil and gas production company said it has started installing three cranes that will connect the three wells of the Karish and Tanin marine project to the floating utilities. This major step in the project would in turn produce and store gas.

The company added that the implementation of the pipeline to connect the project will start in the fourth quarter (Q4) of 2020, to be completed in Q1 of 2021.

Technip FMC, an Energean partner, has completed the installation of gas pipelines on time and has delivered the main establishments of the deep water production systems. This included the installation of a 24-inch and 30-inch gas pipeline with a length of 90 km, and depth of 1,700 metres.

The pipeline’s full completion, including the TIM-Water Depth 72m linking structure, is expected in Q4 of 2020, according to schedule.

The pipeline was extended at an average rate of 4,578 metres per day (excluding beach shore), which represents a high performance by FMCB Technip.

Meanwhile, the Solitaire ship, which installed the pipeline, has continued supporting the Normand Cutter’s manifold and undersea isolation valve foundations and structures.

More than 400 people took part in these maritime operations and recorded zero work injuries. Furthermore, the piping installation and flooding systems connection to the Karish Development project is 80% complete.

“We are very satisfied with the performance of the installations at sea level so far. The Mediterranean’s environment in the spring has proven to be favourable, as the rate of piping installation was remarkable,” said project manager, Vincent Ripoll Salzi.

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ADNOC signs $20.7bn deal to develop UAE energy infrastructure https://wwww.dailynewssegypt.com/2020/06/23/adnoc-signs-20-7bn-deal-to-develop-uae-energy-infrastructure/ Tue, 23 Jun 2020 21:00:18 +0000 https://wwww.dailynewssegypt.com/?p=734308 The company added that investors will acquire a 49% stake in ADNOC Gas Pipes assets, a subsidiary of ADNOC. The subsidiary, which is newly established, has the rights to lease 38 pipelines, at a total length of 982.3 km. ADNOC will retain the remaining majority stake of 51%.

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The Abu Dhabi National Oil Company (ADNOC) has signed a $20.7bn agreement with an alliance of infrastructure investors who will invest in specific assets in the company’s gas pipelines.

In a statement on Tuesday, ADNOC said the agreement includes Global Infrastructure Partners, Brookfield Asset Management, the Singapore’s sovereign wealth fund GIC, the Ontario Teachers’ Pension Plan (OTPP), NH Investment and Securities, and the Italian company SNAM. The agreement will attract foreign direct investment (FDI) of $10.1bn to the UAE.

The company added that investors will acquire a 49% stake in ADNOC Gas Pipes assets, a subsidiary of ADNOC. The subsidiary, which is newly established, has the rights to lease 38 pipelines, at a total length of 982.3 km. ADNOC will retain the remaining majority stake of 51%.

The agreement stipulates that ADNOC Gas Pipeline Assets will lease the share that ADNOC holds in a group of gas pipeline assets for a period of 20 years. This will occur in exchange for obtaining the right to use these assets with a tariff based on the quantities.

This agreement brings instant returns to ADNOC, amounting to AED 37.1bn. Its completion is subject to satisfying the accepted terms and conditions, and obtaining the approval of the relevant regulatory bodies.

The agreement supports Abu Dhabi’s ambitious goals in the gas sector, and provides investors with a unique opportunity to invest in excellent assets for low-risk energy infrastructure. It provides investors with stable and long-term cash flows from one of the world’s most important energy companies, in terms of credit rating.

The deal, which was sealed on Tuesday, comes after roughly six months of negotiations due to stock financing arrangements, and the negotiation of the terms of the debt package with banks.

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EGAS applies exemptions for natural gas industrial consumers if old debts paid https://wwww.dailynewssegypt.com/2020/06/22/egas-applies-exemptions-for-natural-gas-industrial-consumers-if-old-debts-paid/ Mon, 22 Jun 2020 19:31:53 +0000 https://wwww.dailynewssegypt.com/?p=734146 EGAS decision valid until year end

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The Egyptian Natural Gas Holding Company (EGAS) is to put in place recently approved exemption of natural gas monthly consumption bills for industrial sector companies that have paid off their dues to the Company.

EGAS said that the factories that have yet to pay their dues of monthly bills, the exempted value will be deducted from their debts.

An EGAS source told Daily News Egypt that the Ministry of Petroleum has informed the company to implement the exemption immediately with the aim to stimulate Egypt’s industrial sector. The EGAS’ Department of Internal Trade began calculating the values ​​of exemptions according to the decision for each factory separately.

The source explained that the decision for exemptions will also include the delay fines imposed on factories from 2009 until the end of 2020. The step comes as part of a bundle of measures to counter the challenges facing Egypt’s economy due to the ongoing novel coronavirus (COVID-19) pandemic.

The source added that several cases regarding debts filed against EGAS by industrial sector companies came to a close. The government has settled these debts with exemptions worth EGP 5.3bn.

Minister of Petroleum Tarek El Molla said the decision to put in place exemptions and facilities granted to natural gas users in industry include exempting them of EGP 5.3bn owed to the oil sector. These debts have been attributed to contractual clauses in the supply of natural gas to factories.

El Molla added that a bundle of procedures have been applied to clauses in contracts that have already been concluded. This includes exempting all clients from paying the penalty, dating back to 2009.

All industrial customers also now have an exemption ​​for 65% of  the penalty stipulated in contracts which should be applied if the customer withdraws quantities of natural gas that exceed contractual quantities.

Furthermore, all clients are now covered by an exemption of 50% of the fines applied due to late payment. This is due to all debts owed being scheduled and paid according to the applied methods.

The Ministry of Petroleum said that, starting from next week, the petroleum sector will start implementing the exemption mechanisms granted to public and private sector natural gas customers. The move marks the start of activating the exemption procedures.

The ministry added that it has taken the initiative to prepare these procedures and present them to the Cabinet. The procedures were approved at the beginning of June, in recognition of the ministry’s responsibility in helping Egypt’s economy face the challenges brought on by the ongoing global pandemic. The Ministry of Petroleum is also looking to give a boost to the oil sector’s supporting role in pushing development and production forward.

El Molla noted that the price of natural gas for industrial activities has twice been reduced in less than six months  to support the competitiveness of Egyptian industry. Last March, the price of natural gas for all industrial activities was reduced to $4.5.

He added that gas prices were reduced in March, following a previous reduction in October 2019 from $8 to $6 for the cement industry, and from $7 to $5.5 for the iron, steel, aluminium, ceramic and porcelain industries.

El Molla stated that this reduction makes the petroleum sector bear an annual decrease of EGP 9.5bn in its revenues from selling natural gas to industrial activities in the local market.

The Ministry of Petroleum presented a package of proposals to the Cabinet in August 2019, which the latter approved for the ceramic industry. The Cabinet approval came in light of the increasing value of debt the industry owes, which account for 55% of the private sector’s total debt.

The ministry said the most important of these proposals includes scheduling the late debt of gas withdrawals due since the beginning of January 2019 until the end of September over a period of four years after paying an advance payment of 5%.

The proposals also included reducing the value of the insurance owed by customers to become equal to 30 days from of the daily contractual instead of 60 days. They would be repaid over 24 months instead of 18 months after paying the advance payment of 25% of the insurance value.

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IFC invests $10m in Egypt’s Globaltronics to enhance energy efficiency https://wwww.dailynewssegypt.com/2020/06/21/ifc-invests-10m-in-egypts-globaltronics-to-enhance-energy-efficiency/ Sun, 21 Jun 2020 18:51:38 +0000 https://wwww.dailynewssegypt.com/?p=734007 Project is part of World Bank Group’s strategy to help Egypt optimise its overall domestic electricity consumption, says Globaltronics Chairperson

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The International Finance Corporation (IFC), a member of the World Bank Group, will invest up to $10m in local Egyptian company, Globaltronics.

The funding will go towards helping Globaltronics, which manufactures electricity measurement solutions, expand on the installation of digital prepaid and smart electricity meters for households.

The investment will support government energy reforms to improve accuracy in electricity billing, whilst enabling the company to support government plans to replace outdated meters. These will see new prepaid, smart digital meters installed as part of ongoing energy reforms in the country.

Prepaid digital meters improve billing accuracy and offer more convenient payment options. Prepaid meters also contribute to overall reduced energy consumption by making it easier for consumers to track their energy use.

The IFC financing will also give consumers more payment options, and provide consumers with improved information about their energy use to encourage savings.

The investment will also help Globaltronics set up a new manufacturing facility in Saudi Arabia, and increase its research and development investments to grow exports and develop new products.

Globaltronics Founder and Chairperson Hany Assal said, “We look forward to investing and growing our business in Egypt and to continue expanding in the Middle East and Africa. As well as supporting manufacturing, the project is part of the World Bank Group’s strategy to help Egypt optimise its overall domestic electricity consumption, which in turn will help the government reduce subsidies to the energy sector.”

  

IFC’s Country Manager for Egypt, Yemen and Libya, Walid Labadi, said, “Egypt’s electricity consumption has witnessed an increase in growth in recent years and is likely to accelerate further. This project is part of IFC’s strategy to support the government in its reforms of the sector and boost energy efficiency, while also helping a local company expand in the region and diversify its offering.”

Egypt is a priority country in the region for the IFC, and has undertaken commitments in Egypt totalling over $4bn since 2005, including financing mobilised from other investors.

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HIDELECO, Military Production Ministry cooperate to manufacture electricity transmission equipment https://wwww.dailynewssegypt.com/2020/06/20/hideleco-military-production-ministry-cooperate-to-manufacture-electricity-transmission-equipment/ Sat, 20 Jun 2020 18:50:04 +0000 https://wwww.dailynewssegypt.com/?p=733935 EGP 100m allocated to support electricity lines in Owaynat and Gabal Al-Kamel areas

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The High Dam Electrical and Industrial Projects Company (HIDELECO) and the Ministry of Military Production are to cooperate on manufacturing electricity transmission equipment, according to HIDELECO Chairperson Kamal Kuraytem.

Kuraytem said that equipment production will take place at Factory to establish and operate the energy transmission line between Owaynat and Gabal Al Kamel. The project is set to cost a total of EGP 100m to serve the national project to reclaim and grow 1.5m feddans.

He added that several new tenders have been awarded requiring cooperation with national bodies that have the capabilities, including a tender for lighting in Cairo at a cost of EGYP 27m. At the forefront of this cooperation is the Ministry of Military Production.

Kuraytem explained that the Benban – Toshka giant line is being implemented with a voltage of 500 kV, while 80% of the 220 kV Qena – Nag Hammadi line has been completed.

The new 500 kV Hawamdia transformer station has been established, and 70% of the Tama – Gerga power line has been completed in Sohag Governorate. Work is still ongoing on the Esna – Sebaiya line in Qena Governorate, and the Nubaria – Beheira line has been completed.

Kuraytem said HIDELECO has contracted to purchase the latest wire-tightening machines from Germany at a cost of EGP 17m. It is anticipated that this equipment will accelerate the completion of new projects and shorten the time period required for their implementation.

Work is currently underway to implement medium and low voltage lines to meet the requirements of development and investment projects in Owaynat and Toshka.

Kuraytem stressed that work is also underway to renew and modernise electricity transmission lines starting from the Hawamdiya region and an extension to the south valley governorate.

The project will cost a total of EGP 120m, and falls under the state implementation programme to renew all components of the national network in Upper Egypt in the coming years. The giant project to renew the high and super voltage lines in Upper Egypt is also anticipated to begin implementation.

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Egypt exempts industrial sector of EGP 5.3bn debts for natural gas consumption https://wwww.dailynewssegypt.com/2020/06/18/egypt-exempts-industrial-sector-of-egp-5-3bn-debts-for-natural-gas-consumption/ Wed, 17 Jun 2020 23:48:16 +0000 https://wwww.dailynewssegypt.com/?p=733726 Ministry submits proposals in August 2019 to schedule debt arrears by ceramics companies, says El Molla

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Natural gas industrial consumers will be exempted EGP 5.3bn of their debts owed to the ministry, according to Minister of Petroleum and Mineral Resources Tarek El Molla.

This will be done through a package of procedures applied to contractual clauses contained in natural gas supply contracts.

The mechanism of exemptions granted to private, public, and public enterprise sector customers will be sent to natural gas distribution companies next week, in preparation for activating the decision. The exemption procedures were prepared by the Ministry of Petroleum with the aim to increase development and boost production, and were approved by the cabinet early this month.

El Molla said, “If an industrial client consumed less natural gas than the contractual quantities, the client shall be fined with the excess value. The new decision exempts all industrial clients from this fine retroactively as of 2009.”

The minister added, “All industrial customers shall be exempted by 65% ​​of the penalty stipulated in contracts if a customer withdraws more natural gas than contractual quantities. All clients are also exempted from 50% of the due late payments penalties for gas supply, providing that they pay the debts owed according to the previously agreed scheduling programmes.”

Meanwhile, El Molla said that his ministry submitted in August 2019 a proposal to the cabinet on scheduling debt arrears owned by ceramics companies. Ceramics industry’s natural gas debt represents about 55% of the private sector’s gas debt. The ministry suggested that those companies shall schedule their debts of gas withdrawals from January to September 2019 over four years after making a 5% advance payment.

The proposal also includes decreasing the consuming insurance to 30 days of daily contractual quantities instead of 60 days, and to be paid in instalments over 24 months instead of 18 months, after paying 25% of the insurance value in advance.

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Facilities put in place for replacing unmetered power connections with metering system https://wwww.dailynewssegypt.com/2020/06/17/facilities-put-in-place-for-replacing-unmetered-power-connections-with-metering-system/ Wed, 17 Jun 2020 08:30:05 +0000 https://wwww.dailynewssegypt.com/?p=733578 New meters will ensure citizens are held accountable for usage according to actual consumption rates

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The Ministry of Electricity has confirmed it is providing facilities for installing metering system at households with unmetered power connections currently in place.

These facilities enable households without electricity transformers to obtain an electric current, provided they pay for due procedures of inspection and measurement. This includes a price for a kilowatt paid in case the transformer is not delivered.

Citizens can make requests to obtain electricity meters via an electronic platform launched by the Ministry of Electricity, and submit documents proving an electric current exists at their residential units.

Mohammed Shaker, Minister of Electricity and Energy, stressed that maintenance work is regular, and that breakdowns and power outages due to the rising summer temperatures are being addressed.

Shaker added that power outages and breakdowns have decreased significantly thanks to cooperation with citizens to preserve the network’s capacities.

He added that distribution companies have provided meters to implement the cabinet decision to replace the current unmetered power connections in some informal housing areas with flat-rate meters to calculate consumption.

The new regulations have provided facilities for citizens to ensure they settle with electricity companies, with the help of the Egyptian Electric Utility and Consumer Protection Regulatory Agency.

Hossam Afifi, head of the North Cairo Electricity Distribution Company, said that the coronavirus (COVID-19) pandemic will not hinder the electricity sector’s work.

The necessary work continues to secure citizens ’electricity requirements, implementing necessary maintenance programmes, and facing malfunctions and power outages.

He stressed that code meters do not give their owner any advantage, but ensure citizens are held accountable for their usage according to actual consumption rates. This is especially with citizens whose consumption is high, but who have refused to install meters as they were receiving electricity almost free of charge.

He said that the duration required to install meters in informal housing areas is up to one year. A daily rate for installing electricity meters will be determined according to the requirements of the Egyptian Electricity Holding Company (EEHC).

The company has a database, according to which the measures will be taken to ensure the stability of the current and avoid affecting the areas surrounding these slums.

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EETC, Chinese consortium contract on EGP 303m worth Madinaty 2 transformer substation https://wwww.dailynewssegypt.com/2020/06/17/eetc-chinese-consortium-contract-on-egp-303m-worth-madinaty-2-transformer-substation/ Wed, 17 Jun 2020 08:00:45 +0000 https://wwww.dailynewssegypt.com/?p=733571 EETC Chairperson Sabah Mashaly said the contract covers the transformer’s construction, with equipment of 220/66 kV of the gas-insulated type, which will operate under the Cairo Electricity Distribution Company.

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The Egyptian Electricity Transmission Company (EETC) has signed a contract with a consortium of Chinese companies for the construction of the Madinaty 2 transformer substation of 220/66/22 KV, worth EGP 303m.

The contract was signed with  Shanghai Sieyuan Electric, Eastern Green Power, TBEA Shenyang Transformer Group, and Sieyuan Electric Egypt.

EETC Chairperson Sabah Mashaly said the contract covers the transformer’s construction, with equipment of 220/66 kV of the gas-insulated type, which will operate under the Cairo Electricity Distribution Company.

Mashaly explained that the EETC will provide the financing for the project, which will be implemented over a period of up to 12 months from the date of the contract’s signing, from its own resources.

Of note is that the transformer will transfer electricity of 220KV and will be connected to the Badr – New Cairo overhead transmission line of 1,000 metres, which will then split to become Badr – Madinaty and New Cairo – Madinaty lines, at an estimated cost of EGP 4.5m.

Another connection is also made on 66kV to the Shorouk – Madinaty and Badr – Madinaty transmission lines, at an estimated cost of EGP 15m.

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APICORP anticipates $792bn investments in MENA energy over 5 years https://wwww.dailynewssegypt.com/2020/06/17/apicorp-anticipates-792bn-investments-in-mena-energy-over-5-years/ Wed, 17 Jun 2020 07:30:04 +0000 https://wwww.dailynewssegypt.com/?p=733574 Egypt implements petrochemical projects worth $38bn in 2020-2024

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The Arab Petroleum Investments Corporation (APICORP) anticipates that over $792bn will be invested in energy projects across the Middle East and North Africa (MENA) region over the next five years.

The projection was set out in its report, entitled “Energy Investment Outlook in MENA region” for 2020, published on Monday.

The figure shows an estimated decrease of $173bn in comparison to estimates laid out in the Energy Investment Projections Report for 2019. The latter report had estimated the company would put forward total energy investments in the region of over $965bn for the years 2019-2023.

The planned investments were severely affected by the decline in funding, which has come on the back of a triple crisis in 2020. These are namely the coronavirus (COVID-19) pandemic, the decline in oil prices, and a looming financial crisis in the coming period.

The report also indicates that investments in the Gulf Cooperation Council (GCC) region increased 2.3%, compared to a 6% decline across the MENA region as a whole. This is an indication of the relatively high rate of project implementation in the GCC countries.

At the end of the first quarter of 2020, the majority of countries worldwide were stuck between maintaining economic activity and the risk of significant loss of life. Countries have also had to grapple with enforcing restrictions to contain the pandemic and accepting the negative economic consequences.

While general restrictions have taken place without the need for international cooperation, the resumption of activities such as travel and trade will require inter-country coordination.

As for the oil crisis, which was the result of excess supply and the unprecedented decline in demand due to the global health crisis, APICORP expects this to lead to the oil and gas sector’s restructuring.

This will enhance efficiency and ensure mergers and acquisitions occur. Given the various market factors, such as variation in crude oil prices and futures and physical futures, APICORP estimates the average price of Brent crude will range between $30-40 per barrel in 2020-2021.

The Energy Investments Expectations Report 2020-2024 indicates that most of the total energy investments will be driven by number of mega projects in several MENA region countries.

These include gas and electricity generation projects in Saudi Arabia, worth $39bn and $41bn, respectively, and Iraq’s $33bn projects to restore construction and gas electricity generation. The UAE has also set up projects worth $45bn to maximise oil production, with Egypt creating new petrochemical projects worth $38bn.

At the same time, APICORP said the private sector’s share in energy projects investments has decreased to 19%, compared to 22% in last year’s outlook.

The gas sector recorded the highest leap in planned investments, seeing a $28bn increase in investment volumes, or equivalent to a 13% increase, compared to last year’s outlook.

It is projected that the largest investments in unconventional gas developments will take place in Saudi Arabia’s Al-Jafoora and Al-Ha’il fields, in addition to the UAE’s Ghasha field. There is also likely to be an increase in production capacity in Qatar, Egypt and Oman.

APICORP expects MENA region countries will unify their petrochemical sector strategy to extract the most value from hydrocarbon products. The most prominent investments in this sector include Oman’s two projects of Al-Duqm, valued at $8.67bn, and Al-Sour, valued at $6.73bn. Other prominent investments have taken place in Al-Zoor in Kuwait, at $6.5bn, and the Satorp Admiral project, worth $6.34bn, in Saudi Arabia.

Electricity generation sector investments recorded an estimated decrease of about $114bn following the completion of several projects in Egypt, the UAE, and Saudi Arabia in 2019.

Share prices for public services utilities in the region have not decreased at the same rates for oil and gas sector companies. This is the result of moderate demand on electricity and the subsidization provided by some countries to the water and electricity sectors.

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Electricity Ministry negotiates local bank loan to finance EGP 20bn grid support projects https://wwww.dailynewssegypt.com/2020/06/17/electricity-ministry-negotiates-local-bank-loan-to-finance-egp-20bn-grid-support-projects/ Wed, 17 Jun 2020 07:00:58 +0000 https://wwww.dailynewssegypt.com/?p=733561 No alternative to rising electricity prices, despite reduced consumption and collection during COVID-19

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Progress is being made to obtain a loan from banks operating in Egypt to complete grid support projects in North Sinai, Toshka, and Eastern Al-Owainat areas, according to Minister of Electricity and Renewable Energy Mohamed Shaker.

Speaking to Daily News Egypt, Shaker said the Ministry of Planning has already allocated EGP 5bn for strategic electricity projects item in the fiscal year (FY) 2020/21 budget, as part of an investment plan for four years.

He explained that the total cost the planned projects in FY 2020/21 is EGP 20bn, including power transformer substations, lines, and networks to improve service quality. Contracts have already been signed with private companies, with further contracts still in the offering.

Shaker revealed that his ministry’s plan includes the implementation of 6,238 transformer substations, and electrical lines to secure electrical supply for coastal areas, Eastern Al-Owainat, Toshka, and other national projects.

He added that work is underway to provide electricity for sustainable and comprehensive development projects in Egypt, including industrial parks and land reclamation projects. These require the expansion of the national electricity grid, in addition to strengthening electrical networks with neighbouring countries.

In February, President Abdel Fattah Al-Sisi ratified a EGP 20bn loan for the Ministry of Electricity at 5% interest from the Central Bank of Egypt.

Shaker added that the first quarter of next year will witness the completion of all projects under the 2020/21 strategy.

He said that a study is being prepared to support the electrical network in North Sinai, with a capacity of 500kV. This requires the expansion of the Baghdad, East Ismailia, Oyoun Mousa, and Taba transformer substations, as well as the construction of the Sarw and Kawarir 220/66/22 kV transformer substation. The latter will also be connected to the national grid, and the establishment of the Al Mazar and Al Midan station.

He pointed out that the consolidation also includes the construction of a 150km-long double-circuit overhead line of 500kV linking the Baghdad and East Ismailia transformer substations. This would come in addition to the establishment of a double-circuit line of 500kV from Baghdad to Taba at a length of 180km.

Shaker said that the total estimated cost to support the electricity network in North Sinai is EGP 4.8bn, and all work is expected to be completed by the end of 2021.

He noted that there is no crisis in the electrical network’s capabilities, but there are opportunities that can be exploited. This could occur through cooperation with neighbouring countries via electrical interconnection projects, or in providing electrical current to all regions and national projects across Egypt.

“With an increasing demand for energy, these capabilities will be exploited, so we will work in an organised manner to provide electricity to Egypt,” Shaker stressed.

He added that the development in renewable energy prices and its benefit in reducing emissions and preserving the environment is the main reason for halting coal powered plants.

Shaker noted that projects with a capacity of 1620MW are being studied, and will be awarded at the end of the current year. There are still many tenders for the establishment of renewable energy stations in the West Nile region put forward by the Egyptian Electricity Transmission Company (EETC).

He explained that the decision to increase electricity prices is not new, with the announcement made in 2014 to completely remove subsidies in 2019. This was before the floatation of the Egyptian pound forced the Ministry of Electricity and Renewable Energy to extend the removal of subsidies until 2022, to avoid adding to the burden of citizens.

Shaker said that the decision to increase prices is a must, since electricity is sold at a lower price than its real cost. This adds financial burdens on production companies, particularly if there is a failure to pay consumption bills. As a result, companies achieve losses and cannot fulfil their financial obligations towards institutions and their lenders to implement projects.

Shaker confirmed that the sector has already been affected a lot because of declining consumption and the closure of many shops, institutions, and factories, besides rates of collection of consumption bills have decreased in the past three months.

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Egypt raises electricity prices, phasing out remaining subsidies over 3 years https://wwww.dailynewssegypt.com/2020/06/10/egypt-raises-electricity-prices-phasing-out-remaining-subsidies-over-3-years/ Tue, 09 Jun 2020 23:44:46 +0000 https://wwww.dailynewssegypt.com/?p=732914 Household electricity prices increase by an average of 19.1%

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The government raised household electricity prices by between 17% and 30% (19.1% average) as it introduced the latest round of electricity subsidy cuts, Minister of Electricity and Renewable Energy Mohamed Shaker announced Tuesday. The remaining electricity subsidy will be phased over a further three years until the fiscal year (FY) 2024/25, according to Shaker.

The extension on the electricity subsidies period will mean that the state will bear a total cost of EGP 26.7bn.

During a press conference on Tuesday, Shaker said the plan to rationalise electricity subsidies began in 2015, with a fully liberalised price to have occurred by the end of July 2019.

However, in 2017, President Abdel Fattah Al-Sisi directed for the extension of phasing out period to eight years instead of five years in the subsidy cut plan, to avoid further burdens on citizens. As a result, the ministry already has a plan in place that extends the process of cutting subsidies until July 2021.

The minister added that the price of high, medium and high voltage electricity consumption was reduced by 10 piasters to support Egypt’s industrial sector. This would occur provided that the state budget will bear the value of this subsidy for the next five years of EGP 22bn.

Shaker noted that natural gas prices have increased from $3 to $25.3 per million thermal units. Despite this, the price of gas will remain fixed $3 per million thermal units for electricity production stations. The move will ensure the final energy consumer does not bear any additional financial burdens, ensuring the Ministry of Finance bears a financial burden amounting to EGP 29.9bn.

Accordingly, the total amount borne by the state budget over the next five years as a result of electricity subsidy measures will stand at EGP 78.6bn.

Shaker noted that a 9 June cut of electricity subsidies has seen the average increase rate in household electricity prices during FY 2019/2020 reaching 19.1%.

According to the Ministry of Electricity data for FY 2019/2020, household electricity consumption reached 41.7% of Egypt’s total electricity use. This was followed by services such as offices, clinics and gas stations at 8.5%, then commercial stores by 5%. Government agencies reported electricity consumption of 4.8%, with agriculture also consuming 4.8%.

“In price plans, we take into consideration the citizens’ monthly financial capabilities,” Shaker said, adding that the prices were set according to the exchange rate against the dollar, which is currently EGP 16.

“We acknowledge that we have billing errors, though, the standard reading programme for electricity meters helps reduce errors,” Shaker said. “The ministry has installed 9.3 million prepaid meters, and 5,000 consumers use their phones to charge smart meters, with 182,000 smart meters out of 250,000 meters installed.”

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EuroAfrica Interconnector project delayed due to unfinished studies: source https://wwww.dailynewssegypt.com/2020/06/03/euroafrica-interconnector-project-delayed-due-to-unfinished-studies-source/ Wed, 03 Jun 2020 18:26:44 +0000 https://wwww.dailynewssegypt.com/?p=732373 Project implementation will not be activated or agreed upon until required studies are completed, says source

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Egypt’s Ministry of Electricity will postpone the electrical interconnection project agreement with Cyprus and Greece, EuroAfrica Interconnector, due to the necessary studies by the Cypriot side for the project not being completed.

A Ministry source told Daily News Egypt that the Cypriot developer of the project  was notified several times that the studies required completion for the interconnection project to proceed.

The studies were required as part of compliance measures with the ministry’s strategic plan for electrical linkage with neighbouring countries.

EuroAfrica Interconnector is a HVDC interconnector between Greek, Cypriot, and Egypt power grids via submarine power cable. It will have a capacity to transmit 2 GW of electricity in either direction.

The source added that Cyprus has determined the submarine cable path, with the Egyptian Electricity Transmission Company (EETC) responsible for determining the submarine cable’s landing point in Egypt.

The sources added, however, that the EETC in fact needs in-depth and extensive studies, especially since the submarine cable is 1,707km long and will need high costs. Moreover, the cable’s path and landing points also require security permits.

The source emphasised the importance of the project as it will benefit Egypt’s strategic plan for economic development and energy security. The project is also set to connect Egypt to the European electrical grid through Cyprus.

He stressed that the project‘s implementation will not be activated or agreed upon until the required economic studies are completed. This includes an evaluation of all costs, alongside a review of construction, operation, maintenance, insurance, and guarantees.

In an announcement on its website, EuroAfrica Interconnector, the project developer, announced that the interconnector is in the pre-operation phase.

It noted that the Egyptian government had agreed on the electrical cable’s path, landing point, and the converter station location. It did not, however, discuss further aspects.

“The project will turn Egypt into an energy centre and electric carrier in Europe,” the company said.

It added that the project will contribute to a reduction in carbon emissions and provide social and economic benefits amounting to €10bn.

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Enara awarded power production, distribution contract in 1.5m feddan project https://wwww.dailynewssegypt.com/2020/06/02/enara-awarded-power-production-distribution-contract-in-1-5m-feddan-project/ Mon, 01 Jun 2020 23:26:20 +0000 https://wwww.dailynewssegypt.com/?p=732175 Company implementing renewable energy projects to feed Al-Mughara, West Minya regions

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Enara Group has been awarded the production and distribution of electricity contract in the Al-Mughara and West Minya regions, as part of the 1.5m feddan project.

The Egyptian Countryside Development Company aimed to assign the project of power production and distribution in Al-Mughara and West Minya to a private company. The cost of implementation is set to reach EGP 6.5bn.

Sherif El-Gabaly, Chairperson of Enara, told Daily News Egypt that the company is currently focusing on the production and distribution of electricity in the agricultural sector being one of the main national income resources and ensures local food security.

El Gabaly added that Enara also aims to distribute electricity and implement renewable energy stations in Africa’s agricultural sector during the coming period.

Negotiations and discussions are underway with a number of countries across the continent in this regard, he noted, stressing that the agricultural sector is vital in terms of addressing development issues in Africa and creating job opportunities.

Atef Hanoura, head of the Egyptian Countryside Development Company, stressed that problems relating to salt water in the 1.5m feddan project will be completely eliminated once electricity is delivered and desalination plants start operating.

This technology has become inexpensive and accessible to everyone, whilst ensuring high-quality crop production, he added.

He noted that the construction of electrical networks and lines for agricultural plots in the project will be completed within a period ranging from 18 to 20 months. The Egyptian cabinet has approved Enara’s offers and assigned to it the mission of providing electricity for the project.

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EEHC to implement EGP 32.4bn investment projects in FY2021: chairperson https://wwww.dailynewssegypt.com/2020/05/31/eehc-to-implement-egp-32-4bn-investment-projects-in-fy2021-chairperson/ Sun, 31 May 2020 18:18:11 +0000 https://wwww.dailynewssegypt.com/?p=732038 4.4% growth in energy sold to consumers is expected in next fiscal year, says Desouky

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The Egyptian Electricity Holding Company (EEHC) is looking to implement EGP 32.4bn investment projects in the fiscal year (FY) 2020/21, according to EEHC Chairperson Gaber Desouky.

Desouky added that the electricity sector aims to add an extra 145 MW in capabilities to the national electricity network, which will bring the total capacity to 59,824 MW at an increase rate of 0.24%.

The EEHC is also looking to increase the energy generated to 198.1bn kWh, with an increase rate of 2.03% over FY 2019/20.

This comes in addition to a decrease in fuel consumption to 185 gm per KWh, an improvement of 0.8% from the expected rate for the current fiscal year. The reduction has been attributed to a maximisation of unit production that operates as a combined cycle.

The EEHC projects will contribute roughly 26.8% of the total energy generated.

Desouky added that the amount of energy sold to consumers will be increased by 4.4% over the current fiscal year to 165.4bn kWh. There is also a plan to increase the number of subscribers to 38.7 million, with a growth rate of 3.4%.

He stressed that procedures reviewing the efficiency of existing power plants will continue as planned, with the necessary maintenance and overhauls to ensure their readiness also performed.

The EEHC will also continue implementing its network strengthening plans to ensure continued offloading of expected loads, and continue its coordination with the petroleum sector providing the necessary fuel for stations.

He noted that the project to expand installation of prepaid meters will continue, alongside the project to install smart meters during the next fiscal year.

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NREA considers 3.17 GW power projects https://wwww.dailynewssegypt.com/2020/05/30/nrea-considers-3-17-gw-power-projects/ Sat, 30 May 2020 18:53:13 +0000 https://wwww.dailynewssegypt.com/?p=731958 Power stations with 453 MW capacity being implemented, says El-Khayat

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The New and Renewable Energy Authority (NREA) is considering implementing solar and wind energy projects with a total capacity of 3,170 MW.

NREA Head Mohamed El-Khayyat told Daily News Egypt the projects being considered are wind farms with a total capacity of 2,200 MW, and solar plants with a total capacity of 970 MW.

El-Khayyat added that the projects currently under implementation will reach a capacity of 453 MW, and include a 250 MW wind station, a 200 MW solar station, and a 3 MW bio-energy project.

He also said that solar photovoltaic projects that are now up and running produced about 361 GW/h in March. The total production capacity of wind farms reached 269 GW/h, with the capacity of energy produced from concentrated solar power plants reached 69 GW/h. The actual production of hydroelectric power reached about 1,041 GW/h, and about 1 GW/h of bio energy.

El-Khayyat said the state aims to increase by 20% the share of renewable energy in the country’s energy generation mix by 2022, with the possibility of doubling it by 2035.

The government will also adopt a package of flexible policies and mechanisms to encourage private investment in its projects. These include construction, ownership, and operation; independent producer; and feed-in tariff systems that resulted in the implementation of the 1,465 MW Benban solar energy complex in Aswan.

In addition to the NREA’s government wind energy projects with a capacity of over 1,100 MW in Zafarana and Jebal Al-Zait, private sector projects come with almost double annual growth rates. They also have future expectations for a high frequency in implementing renewable energy projects depending on their competitiveness.

El-Khayyat said that the use of solar energy to generate electricity at operating wells in the one-and-a-half million acres project is inevitable, not a luxury.

Using solar energy to operate these wells helps avoid overloading the electricity grid, whilst exploiting the region’s available renewable energy sources.

El-Khayyat added that Egypt remains on-hand to continue its cooperation with and share its experience in the renewable energy sector with other African countries. This is especially as the NREA is currently implementing renewable energy projects in about 15 African countries, through Egyptian grants and joint cooperation.

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EM may benefit from COVID-19 recession, risk for energy exporters: Renaissance Capital https://wwww.dailynewssegypt.com/2020/05/20/em-may-benefit-from-covid-19-recession-risk-for-energy-exporters-renaissance-capital/ Wed, 20 May 2020 21:43:46 +0000 https://wwww.dailynewssegypt.com/?p=731494 No evidence yet that political leaders in DM or EM will see popularity suffer due to pandemic policies

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The recession caused by the outbreak of the coronavirus (COVID-19) will have three medium-term effects, each good for emerging markets (EM), according to a Renaissance Capital research note.

The note added that they might, however, add political risk to energy exporters and those facing elections in 2020.

It forecast that a Democrat victory in the upcoming US elections in November 2020 should improve FDI flows to EM and reduce dollar overvaluation. It cited that, in the last century, the three US presidents who fought a second-term election after a recession late in their first term have all lost: Hoover, Carter and Bush Snr.

Accordingly, Renaissance Capital expects a more stable Democrat presidency would improve the global investment climate. This will encourage firms to seek the best returns globally, without fear of sudden tariff wars, thus in favour of EM.

“We see the strong dollar, already roughly 10% overvalued relative to its long term. For EM

investor returns, a weaker dollar tends to be helpful. More FDI into EM by US companies is a positive, both in terms of greater capital efficiency of US companies themselves and in terms of lifting investment in EM,” the note said.

The research firm forecast that developed markets (DM) will offer minimal yield on bonds, low yields on high-yield (HY) bonds due to central bank buying, and expensive equities priced for low dividend yields.

The note said that higher debt in DM should keep interest rate lows, reducing borrowing costs for EM and Frontier Markets. However, the firm forecast greater political uncertainty in oil exporters if low oil prices sustained.

“We do not see evidence yet that political leaders in DM or EM will see their popularity suffer in the medium term from their coronavirus policies. But the economic impact will have political repercussions,” the note said.

The report forecast that the economic hit could be more damaging in the US. It also indicates that when oil exporters have to change the promise made to citizens from “we don’t tax you and you don’t get the vote” to “we will tax you”, it is not surprising that pressure grows for a say in how those taxes are spent.

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Egypt to increase electricity project investments to EGP 700bn https://wwww.dailynewssegypt.com/2020/05/18/egypt-to-increase-electricity-project-investments-to-egp-700bn/ Mon, 18 May 2020 18:03:39 +0000 https://wwww.dailynewssegypt.com/?p=731296 No disruption to country’s electricity supply chain since 2015, compared to frequent 15-hour power cuts previously

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Egypt plans to increase the value of investments in electricity projects to EGP 700bn in the next few years, according to a Ministry of Electricity official.

Speaking to Daily News Egypt, the source said the cost of electricity production projects implemented until mid-2019 amounted to EGP 361.4bn, and EGP 4.4bn for transportation projects.

He said the total capacities added to the unified network under President Abdel Fattah Al-Sisi amounted to nearly 30,000 MW, or over 12 times the capacity of the High Dam Station.

Since June 2015, there has been no disruption to the country’s electricity supply chain, compared to the previous situation where electricity outages frequently took place for 15 hours a day.

The source explained that the electricity sector’s current plans include strengthening the national network to transform it into a global network and regional hub for energy. This would come in addition to raising the quality of electrical feeding provided.

The Ministry of Electricity confirmed that all measures have been taken to ensure the standardised meter reading system will be generally in use by the end of this year. This system has many benefits for citizens, and will see a complete reduction in complaints and exaggerated estimates of consumption.

Ministry of Electricity Spokesperson Ayman Hamza said the new system has achieved notable results since it was first applied. The areas where the new system has been applied have seen a decrease in the number of complaints.

Hamza added that according to these results, this system will be fully within the package of measures to improve the quality of services provided to citizens, reduce complaints, and ensure transparency.

He stressed that complaints have already been significantly reduced, as  images of the meter showing consumption can be taken and automatically sent to devices that take readings. This ensures that the meters can register the figures with no room for human error and will also not require any human input or intervention.

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EEHC completes production unit maintenance before increased summer consumption https://wwww.dailynewssegypt.com/2020/05/17/eehc-completes-production-unit-maintenance-before-increased-summer-consumption/ Sun, 17 May 2020 13:49:50 +0000 https://wwww.dailynewssegypt.com/?p=731151 Local and international companies implemented maintenance programmes in preparation for summer

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The Egyptian Electricity Holding Company (EEHC) has completed maintenance and overhaul programmes for its electricity production units before loads increase in the summer season.

An EEHC official said that local and foreign companies have implemented maintenance programmes for all electricity production units, including Siemens, Mitsubishi, and General Electric. There have been no reported problems at the units, all of which are ready for full capacity operation at any time.

EEHC Chairperson Gaber El-Dessouky followed up extensively with company heads on the network performance. The follow-ups aimed to identify obstacles and problems that may appear during the summer months, when temperatures are high, to ensure that all capabilities are provided for to overcome them.

El-Dessouky said that the electricity sector has a central emergency operation room supported by 17 subsidiary rooms with each of the companies producing, transporting and distributing electricity. This is in addition to the national centre for controlling the national network when dealing with crises.

Minister of Electricity and Energy Mohamed Shaker also held several meetings with local and international companies implementing electric projects and sector leaders via video conference. During the meeting, Shaker followed up on progress of the currently under implementation projects to ensure worker safety and maintain project schedules in preparation for the coming summer.

He instructed for operations rooms to be created at all companies to supervise network management. These are to be led by the company heads themselves or their representatives working around the clock to receive citizen complaints.

Shaker pointed to the success of energy sector workers in creating optimal operation and the highest efficiency rates for all national network components, especially at generating stations and transformers.

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EgyptERA approves Solaris request to supply solar energy to Arabian Cement https://wwww.dailynewssegypt.com/2020/05/16/egyptera-approves-solaris-request-to-supply-solar-energy-to-arabian-cement/ Sat, 16 May 2020 15:49:44 +0000 https://wwww.dailynewssegypt.com/?p=731068 Approval includes company’s full commitment to regulations specified in annually-renewed licence

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The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has approved Solaris Renewable Energy’s request to supply solar energy to the Arabian Cement Company.

The renewable energy, which will be supplied for a period of 25 years, will be produced at a 7.2 MW solar power plant project that includes a self-consumption system.

The approval included the company’s full commitment to all regulations, which will be specified in the annually-renewed licence.

In January, Arabian Cement announced that it had signed a partnership with Solaris for the construction of a solar power plant in Suez.

The project will be financed by QNB ALAHLI through the European Bank for Reconstruction and Development’s (EBRD) Green Economy Transition. Solaris will take over the construction and operation of the plant for 25 years on the BOOT system.

EgyptERA also decided to postpone its decision on Karm Solar’s request to include its Wadi Al-Natrun Agricultural Development project in Daqahleya to the licence it has on the net metering scheme.

The company has renewed MIDELEC’s licence for one year, in addition to those for Madnaty Electromechanical Energy, Diyar Al Rabwah Housing and Tourism Development, and Tropi 2 for Tourism Development.

EgyptERA’s Board of Directors has decided to approve the addition of the geographic scope of the Al-Murshidi Mall project in Sheikh Zayed to the geographical areas in which Consukorra Commercial Agencies and Technical Consultations operates.

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Oil prices climb after Saudi Arabia pledges further output cuts https://wwww.dailynewssegypt.com/2020/05/13/oil-prices-climb-after-saudi-arabia-pledges-further-output-cuts/ Tue, 12 May 2020 22:17:41 +0000 https://wwww.dailynewssegypt.com/?p=730707 Oil prices have recently been boosted not only by hopes that demand will soon return, but also by massive voluntary and involuntary production cuts

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Oil prices gained on Tuesday after Saudi Arabia announced plans to further lower its production.
The West Texas Intermediate for June delivery rose 1.64 U.S. dollars to settle at 25.78 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery was up 0.38 dollar to close at 29.98 dollars a barrel on the London ICE Futures Exchange.
“Prices have recently been boosted not only by hopes that demand will soon return, but also by massive voluntary and involuntary production cuts,” Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Tuesday.
Saudi Arabia said on Monday that it plans to slash its oil production in June by an additional 1 million barrels per day, in addition to the reduction committed by the kingdom in the output-cut agreement reached by the OPEC+ last month.
The United Arab Emirates and Kuwait also intended to reduce output by more than required under the OPEC+ deal.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis.

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EETC, El-Sewedy Electric sign contract for EGP 120m aerial line https://wwww.dailynewssegypt.com/2020/05/12/eetc-el-sewedy-electric-sign-contract-for-egp-120m-aerial-line/ Tue, 12 May 2020 19:17:07 +0000 https://wwww.dailynewssegypt.com/?p=730693 Contract will see construction of 20km, 500 kV line as part of plans to develop national electricity network

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The Egyptian Electricity Transmission Company (EETC) and El-Sewedy Electric for Trade and Distribution have signed a contract to implement a dual-circuit aerial line in the Gulf of Suez/S4.

The contract, which will see the construction of the 20km, 500 kV line, comes as part of the Ministry of Electricity and Renewable Energy’s plan to develop Egypt’s electricity network. It also comes as part of the huge efforts to develop electricity transmission networks across the country and the strategic plan for expansion of renewable energies.

The line, worth an estimated EGP 120m in investments and which will be ready in six months, will transmit energy generated from new wind stations at the Gulf of Suez.

EETC Chairperson Sabah Mashaly said the project is part of his company’s plan to unload capacities generated from the new wind stations. These include the construction of the S4 transformer station and its connecting lines.

Accordingly, the EETC has proposed a limited tender between local and international companies specialising in the implementation of the AAAC 506 Gulf of Suez/S4 500 kV double-circuit aerial lines.

By the end of 2019, Egypt’s renewable energy production had increased to about 6,000 MW, equivalent to 11% of the country’s total electrical energy production, which amounted to about 55,000 MW. Hydropower accounts for the lion’s share of energy production in Egypt, recording about 2,835 MW, followed by solar energy, which amounted to 1,740 MW, while wind energy recorded about 1,375 MW.

Egypt plans to make renewable energy contribute 20% of its total energy mix by 2022. Of that figure, wind energy will contribute about 12%, with 6% from hydropower, and 2% from solar energy.

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Marsa Alam links to National Grid for first time https://wwww.dailynewssegypt.com/2020/05/12/marsa-alam-links-to-national-grid-for-first-time/ Tue, 12 May 2020 17:28:08 +0000 https://wwww.dailynewssegypt.com/?p=730672 Pilot phase saw two mobile transformer stations built in the town

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Minister of Electricity and Renewable Energy, Mohamed Shaker, inaugurated via video link the220 kV, 150km long electrical line connecting El Quseir to Marsa Alam on Sunday.

The line, which is in its pilot phase, has two mobile transformer stations in Marsa Alam at a voltage of 220/22/22 kV and capacity of 60 MVA, which link the town to the national grid for the first time.

The Ministry of Electricity said that work is underway to complete electricity transmissions through the national network for the Red Sea’s south-east. This covers the area El Quseir and Berenice, running through Marsa Alam. The EGP 970m project required a dual-circuit antenna line with a voltage of 220 kV at 295 km in length.

The ministry has also installed four mobile units with investments of EGP 180m, at 220/22/22 kV, with two units each in Marsa Alam and Berenice, with a capacity of 60 MVA per unit.

The Egyptian Electricity Transmission Company (EETC) has succeeded in implementing this line in a record six months timeframe, in cooperation with major specialised companies in the field.

Shaker emphasised the importance of linking these areas with the unified national grid to achieve urban and social developments as well as encouraging tourism to the promising area.

It will also reduce the current costs of connecting electricity to these areas that are currently being fed by diesel-run generating units and high-cost gas units.

He explained that the average annual cost of operation, maintenance, and spare parts for these units at their current loads is about EGP 270m.

Giza Systems, in partnership with EX EGEMAC has implemented 220-volt mobile transformer substations after they won a tender put forward by the EETC last year.

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Oil prices fall amid oversupply concerns https://wwww.dailynewssegypt.com/2020/05/07/oil-prices-fall-amid-oversupply-concerns/ Wed, 06 May 2020 22:37:54 +0000 https://wwww.dailynewssegypt.com/?p=730231 Oil prices fell as WTI for June delivery dropped $0.57 to $23.99 a barrel, while Brent crude for July decreased $1.25 to $29.72 dollars a barrel

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Oil prices slipped on Wednesday amid concerns over a supply glut as the COVID-19 pandemic continued to hit demand.
The West Texas Intermediate (WTI) for June delivery fell 0.57 U.S. dollar to settle at 23.99 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery decreased 1.25 dollars to close at 29.72 dollars a barrel on the London ICE Futures Exchange.
Oversupply and storage capacity concerns rattled markets despite data showed U.S. weekly crude inventories rose less than expected.
U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 4.6 million barrels during the week ending May 1, the U.S. Energy Information Administration reported on Wednesday. The reading was smaller than the average build of 7.1 million barrels forecast by analysts polled by S&P Global Platts.
Wednesday’s market movement followed noticeable gains in oil prices during the previous session. The U.S. oil benchmark jumped more than 20 percent on Tuesday, notching a five-day winning streak.
“We believe that the current euphoria on the oil market is premature. Even following a gradual resumption of economic activity, demand may remain below the 2019 level for years to come,” Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Wednesday.

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