A Former Assistant Foreign Minister Advisor to the Minister of Local Development for International Cooperation,
Ambassador Dr. Mohamed Higazy has made it known that to ensure constant power supply to the whole of Egypt now and in the future, the country has capitalized on wind energy, solar energy, and others to generate more power.
As a participant in the ongoing 58th Training Course for Young African Journalists, I have enjoyed constant electricity at my hotel, and public places including restaurants and offices.
One will say, most hotels have backup generators or systems to keep the lights on 24/7.
Yes, that could be an argument, but the truth is whatever power the visitor or tourist enjoys in the hotel is being enjoyed by ordinary citizens in their homes, offices, or public places.
At one of the training sessions, Ambassador Dr. Mohamed Higazy, who is also a Member of the Union of African Journalists made us understand that as part of a 10-year development vision or plan of Egypt, the country has capitalized on wind energy and solar energy to generate more power to supply to all parts of the country.
The presentation was to enable participants to understand what the country has done in the last 10 years in terms of development so that other African Countries can learn from it.
The plan, he makes us understand covered mobility infrastructure, modern industries, informal settlement upgrading, infrastructure development, modern methods of farming, decent life initiatives, fisheries development, and health initiatives.
Despite the challenges being faced in African Countries, Ambassador Dr. Mohamed Higazy, was optimistic that African Countries can build their own successes with political determination.
He made the Journalists understand that the money for all these projects undertaken by the government came from determination and the right thinking.
For instance, he noted that the country decided to build its new capital, popularly known as the new Cairo in the middle of a desert and sent the needed resources including human resources and administration to the place.
Aside from making it attractive, the government decided to bring factories in to make the new capital, industrial.
Focus on Electricity
Through Ambassador Dr. Mohamed Higazy’s Presentation, we uncovered that Egypt possesses an abundance of land, sunny weather, and high wind speeds, making it a prime location for renewable energy projects.
The renewable energy equipment market, we understand is potentially worth billions of dollars.
Despite the cost, the Egyptian government is cognizant of the need for a sustainable energy mix to both address increasing demand, and to move to a more environmentally sustainable and diverse electricity sector.
The Country’s 2035 Integrated Sustainable Energy Strategy, which builds on previous strategies, emphasizes the importance of renewable energy.
Due to this, we understand Egypt is working on increasing the supply of electricity generated from renewable sources to 42% by 2035, with wind providing 14 percent, hydropower 1.98 percent, photovoltaic (PV) 21.3 percent, wind 14 percent, concentrating solar power (CSP) 5.52 percent, and conventional energy sources 57.33 percent by 2035.
Through the presentation, we also understand that this plan is currently being revised and waiting for the approval of the Supreme Council for Energy to reflect 33 percent of the energy generated from renewable energy by 2025, 48 percent by 2030, 55 percent by 2035, and 61 percent by 2040.
Though a very optimistic plan, we understand the private sector is expected to deliver most of this capacity.
How did Egypt get here?
Through Ambassador Dr. Mohamed Higazy’s presentation, we learnt that from December 2015 to December 2018, a total of 28229 MW was added to the grid, resulting in a total installed capacity of 55 GW, including both conventional and renewable energy sources.
This has been achieved through a fast-track project that worked on installing 3636 MW of electricity in 8.5 months and is worth USD 2.7 billion.
He noted that another project was signed with Siemens in March 2015 which added 14400 MW in 2.5 years by building 3 mega combined power cycle stations, by converting old simple cycle power plants to combined cycle, and another 1850 MW were installed.
Ambassador Dr. Mohamed Higazy also made it known that as part of the country’s plan to become an energy hub, Egypt has constructed several energy interconnectors.
“There is one with Jordan with a capacity of 250 MW, which is expected to increase to 450-500 MW. There is a smaller one with Sudan with a capacity of 80 MW, which is expected to increase to 300 MW. The third interconnector with Libya has a current capacity of 200 MW. The country is also working on finalizing an interconnector with Saudi Arabia. In 2019, an MOU was signed to establish an interconnector with Cyprus and Greece that will be divided into 2 phases of 1000 MW of capacity, providing a total of 2000 MW,” he noted.
The agreement, he noted is currently under technical study.
Another interconnector, we understand is also under study with Iraq via Jordan, transferring around 100-150 MW in the first phase and reaching 500-600 MW capacity in the second phase.
We are also made to take note that the Ministry of Electricity and Renewable Energy has worked to upgrade Egypt’s transmission grids and went from 2364 kilometers of the total length of 500 KV grid in 2014 to 6006 kilometers of the total length of 500 KV grid by the end of 2020.
However, in 2014 Egypt had 18 substations of 9800 MVA total 500 KV capacity.
Despite the above situation, by the end of 2020, the country had a total of 48 substations with 5450MVA total of 500 KV capacity by adding 30 substations with a total of 44250 MVA, which was more than 4 times the existing one in 2014.
It was also uncovered that the government of Egypt invested around EGP 24 billion (around USD 1.5 billion) in the distribution grid between 2017 and 2020 and currently needs around EGP 19.5 billion (USD 1.2 billion) to upgrade its distribution networks.
Meanwhile, the government is also working on modernizing 47 distribution control centers around the country.
“There are 19 centers under construction: 14 with Schneider Electric, 1 with General Electric, and 4 with JICA” he noted.
Regulation
As part of the efforts done by the government to regulate energy consumption, the Ministry of Electricity has started working on replacing 38 million old electricity meters with smart pre-paid ones.
According to Ambassador Dr. Mohamed Higazy’s presentation, there are 10 million units installed and the rest will be installed in the coming 5 years, noting that part of Egypt’s Vision 2030 is to increase local content.
Also, it was noted that the Ministry of Electricity and Renewable Energy (MOERE) succeeded in reaching 30 percent local content for wind farms in 2018 and was expected to increase the share to 70 percent by the end of 2020.
The ministry was expected to reach 50 percent local content for CSP projects also by the end of 2020.
The New and Renewable Energy Authority (NREA), which falls under the Ministry of Electricity, plays a strategic role in implementing the government’s renewable energy plans.
Accordingly, as of the 3rd quarter of FY 2020/2021, Egypt had about 1,375 MW of wind power plants in operation mainly by NREA and one project by the private sector producing around 250 MW.
There is 1623 MW of PV energy installed and 140 MW of CSP. There are 2,832 MW of hydro power installed, which is the maximum that can be produced unless the government installs pumper storage stations (still under study). This has contributed to the reduction of 1,000 tons of CO2 emissions.
In the waste-to-energy (W2E) subsector, Egypt uses 4.2 million tons of municipal solid waste (MSW) for W2E.
This amount will be able to generate around 300 MW over the coming 5 years.
It was also noted that Electric vehicles are one of the government’s sustainability priorities.
As there is a surplus in electricity, the government is working with the private sector to make the subsector price-competitive.
There is a huge focus from the government on water desalination projects, and as it requires electric power, the Ministry of Electricity and Renewable Energy is working closely with the Ministry of Housing and the aim is to have 2.8 million cubic feet of water per day in 2025.
Again, it is noted that Power Africa is a market-driven, U.S. Government-led public-private partnership aiming to double access to electricity in sub-Saharan Africa.
It offers tools and resources to private sector entities to facilitate doing business in sub-Saharan Africa’s power sector.
Wind Energy
Through Ambassador Dr. Mohamed Higazy’s presentation, we learn that Egypt enjoys excellent wind along the Gulf of Suez with an average wind speed of 10.5 m/sec.
It is just one of 38 countries in the world with a published National Wind Atlas.
Since 2001, a series of large-scale wind farms with a total capacity of 1.2 GW were established in cooperation with Germany (KFW), Denmark (DANIDA), Spain (Siemens Gamesa), and Japan (JICA).
In the Gulf of Suez, a 540 MW project is under construction, with another 580 MW project in financing.
The Egyptian government recently allocated around 7,845 square kilometers in the Gulf of Suez region and the Nile Banks for NREA to implement additional wind energy projects.
The 262.5 MW Ras Ghareb wind farm project near the Gulf of Suez was inaugurated in December 2019.
Executed by a consortium led by the French company Engie (Engie 40%, Toyota Tsusho 40%, and Orascom 20%), the farm will supply power to approximately 500,000 households. It is the first project in wind energy to follow the BOO (Build-Own-Operate) model.
Additionally, Lekela’s West Bakr Wind Farm located Gulf of Suez will generate 250 MW of clean energy. This project is also a BOO (Build, Own, and Operate).
It was noted that the government is working on refurbishing and repowering NREA’s wind farms in Zaafarana and Gabal El Zeit with additional pipeline capacity.
Preliminary estimates indicated that Zaafarana projects can yield significantly higher energy and have improved efficiency at a much lower cost with the refurbishment of some turbines according to the Minister of Electricity and Renewable Energy. This farm includes around 700 turbines.
Solar Energy
Egypt’s Solar Atlas states that Egypt is considered a “sun belt” country with 2,000 to 3,000 kWh/m2/year of direct solar radiation.
The sun shines 9-11 hours a day from north to south, with few cloudy days.
The first solar thermal power plant was built in 2011 in Kuraymat. It has a total installed capacity of 140 MW, with a solar share of 20 MW based on parabolic-trough technology integrated with a combined-cycle power plant using natural gas.
The power plant was financed by the Global Environmental Facility (GEF) and the Japan Bank for International Cooperation (JBIC).
A 10 MW power plant has been operating in Siwa since 2015, and the remaining plants are expected to be implemented and operated consecutively.
The 37 square-kilometer Benban Solar Park in Egypt’s Western Desert was completed in 2019 with financing provided by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and other international financial institutions. Composed of 32 individual plants, each producing 20-50 MW, and four substations, the Park generates almost 1.5 GW of power.
Leading Sub-Sectors
Wind turbines
Wind towers
Photovoltaic panels and related technologies
Concentrating solar power equipment and technologies
Transmission grids
Green energy
Energy efficiency
Electric vehicles
Water desalination
Opportunities
In 2012, the Egyptian government approved the Egyptian Solar Plan, which includes adding 3.5 GW (2.8 GW CSP and 700 MW PV) of solar energy by 2027.
The Ministry of Electricity and Renewable Energy signed seven memoranda of understanding worth USD 500 million for solar and wind projects in Egypt.
The government announced an interim target for the first regulatory period (2015-2017) to contract 4,300 MW of both solar and wind energy, and a feed-in tariff (FIT) which will allow Egypt to procure 4.3 GW of solar and wind power production by 2017.
Meanwhile, Egypt is also considering financing options to conduct feasibility studies for some projects including
Solar-thermal power plant using CSP technology for both electricity generation and water desalination.
Others are Solar-thermal power plants for industrial purposes, designing a technical-financial mechanism to promote the use of solar water heaters in Egypt’s residential sector and the
local manufacturing of renewable energy equipment.
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