Ministry of Electricity and Renewable Energy sustainable Energy Deployment in Egypt Eng. Ahmed Mohina Undersecretary for Authorities follow up 9/11/2017
contents Where we want to be?. Where are we now?. What is the gap?. What are we doing to be there?. 2
Sustainable Development Strategy: Egypt vision 2030 3
Strategic vision for energy to 2030 An energy sector meeting national sustainable development requirements and maximizing the efficient use of various resources contributing to economic growth, competitiveness, achieving social justice, and preserving the environment. A renewable energy and efficient resource management leader,and an innovative sector capable of forecasting and adapting to local, regional, and international developments and complying with SDGs. 4 There is coherent among the strategic vision for energy 2030 and UN SDGs.
Utilization of all available resources. Promoting utilization of renewable energy. Promoting electricity interconnection. Improving energy Efficiency through adopting Energy Efficiency strategies. Environment conservation by adopting necessary measures on the supply side. Future planning to face the increasing demand.
Energy Strategy until 2035 A new strategy of electricity Sector was updated in cooperation with EU in the framework of Energy Sector Policy Support Program (ESPSP) up to 2035 to ensure diversify of energy mix from all resources (Wind Solar PV Solar CSP - Coal Nuclear oil & gas). In this strategy, all energy scenarios in Egypt has been studied by focusing on renewable energies and Energy Efficiency.
Energy Strategy until 2035 In 18/10/2016 The supreme council chose the optimal scenario for Egypt. Now we are updating the strategy according to the new variables such as fuel prices, floating exchange rate and decaying of new technologies cost. A new optimal scenario achieves the required energy balance including 42% Renewable Energy share till 2035, taking into consideration energy efficiency measures with the target of 18 %.
Electricity production by plant type in the Updated Optimal Scenario until 2035
2017 Installed Capacity (MW) 45192 Max Load (MW) No. of Consumers (million) Electricity Share per Capita (kwh) 30800 32.8 1950
Ministry of Electricity & Renewable Energy New and Renewable Energy Authority Hydro Power Plants Executive Authority Egyptian Electricity Holding Company Nuclear Power Plants Authority Atomic Energy Authority Nuclear Materials Authority Electricity Generation Companies Cairo East Delta Middle Delta West Delta Upper Egypt Hydro Power Plants Egyptian Electricity Transmission Company Distribution Companies North Cairo South Cairo Alexandria El Beheira North Delta South Delta Canal Mid. Egypt Upper Egypt
Activities in RE Fields (Hydro Wind - Solar) Hydro Energy Wind Energy Solar Energy
Installed capacity from hydro is 2843 MW Hydro power represents 7 % from the generated electrical energy. Currently, Assuit Hydro Power Project with 32 MW is under implementation and it is planned to be operated by 2018 It s planned to establish pumping & storage plant up to 2400 MW in Attaqa - Suez to be operated by 2022 A study has been conducted to choose the most suitable locations for Pumping & Storage plants.
High Resources Wind Atlas of Egypt 1996, 2003 & 2005 Average wind speed reaches: 10.5 m/sec at 50 m height. Average wind speed reaches: 7.5 m/s at 80 m height. 16 Potential Capacities: More than 30000 MW Produced Power
Installed Wind Farms Installed capacity : 750 MW Generated Energy 12.6 Billion KWh fuel savings 2.7 mteo CO2 reductions 6.8 million ton
High Resources Solar Atlas of Egypt Direct solar radiation ranging: 2000 3200 kwh/m 2 /year Sun shine duration: 9-11 h/day Potential Capacities: More than 50000 MW Produced Power
Solar Thermal Electricity Generation 140 MW Solar thermal power plant at kuraymat The 1st CSP plant is 140 MW including solar field of 20 MW The project started operation commercially in July 2011.
Solar Photovoltaic Systems The Total Installed Capacity of PV Systems is more than 80 MW for different purposes (remote areas, governmental buildings,.). The Cabinet has approved decree to disseminate the use of PV in 1000 governmental building. the Governorates Council has approved to utilize the Solar Energy in streets and public buildings lighting.
March 2014 Evolution of Legislation Amendment the name of ministry of Electricity & Energy to be Ministry of Electricity and Renewable Energy. July 2014 A tariff reform program was adopted and announces for eight years up to 2022. Consequently, the price of the electricity generated from renewable energy will be increased annually with the same rate. Renewable energy will benefit from it, as the right price signal is becoming available. Sep. 2014 The Cabinet has approved the Feed-in Tariff system for electricity projects produced from RE resources (PV & wind). Oct. 2014 A presidential decree has issued to modify (NREA) establishment law to allow it to establish companies by itself or in partnership with the Private sector to implement, operate and maintain RE project. Dec. 2014 RE law was issued to encourage generating the electricity from renewable energy sources through 4 development schemes. Sep. 2016 A new phase of the Feed-in Tariff system for 23 PV & wind farm has been announced to be applied by 28/10/2016.
The Egyptian Government role in supporting the renewable energy includes: v Land allocation and permits, (7650 km2 are already allocated) v Availability of the related information, v Long-term PPA, v Governmental guarantees, v Custom duties are 2%. v The investors will enjoy benefiting from carbon credits. v Environmental Impact Assessmentstudies and others.
Land assigned for renewable energy, projects
Renewable Energy Development Schemes RE Development Mechanisms Competitive Biding FiT since 2014 (4300 MW) New& Renewable Energy Authority (NERA) (EPC contracts) since 1999 (3259 MW) Transmission company (BOO) since 2009 (1250 MW) Total capacity 8809 MW 27
Feed-in Tariff In Sep. 2014, The Cabinet has approved the Feed-in Tariff system for PV & wind farm with capacity less than 50 M.W. the Regulatory Agency (Egypt ERA) has finalized the regulation rules. FIT aims installing of 2300 MW (PV) (2000 M.W. by investors + 300 M.W. for residential rooftop) and 2000 MW (wind). A central unit for FIT(On stop Shop) has been established to provide the necessary support for the investors.
Feed-in Tariff 1 st Phase : FIT Unit received about 175 offers with about 10500 MW PV and about 3200 MW wind..9 Companies have submitted their offers in PV. 3 Companies had been qualified to implement 3 x 50 MW PV projects at Benban area. 1st Project will start generating electricity on 15 November, 2017.
Feed-in Tariff 2 Phase : In Sep. 2016, A new phase of the Feed-in Tariff system for PV & wind farm has been announced to be applied by 28/10/2016. The financial closure of the project was in October 2017. By the end of October 2017, 30 Power Purchase Agreement (PPA) was signed with total capacity of 1365 megawatts Solar project in addition to signing an agreements with two companies in a private land allocation with total capacity 100 megawatts.
Plant Installed Capacity Residential Non Residential Less than 500 KW 500 KW 20 MW 20 MW 50 MW Finance ----- ----- 70% Foreign finance 30% Local finance FiT / kwhr 102.88 pt. 108.58 pt. 7.88 $ cent 8.40 $ cent Contract Period : 25 years
Operational Hours FiT $ cent / kwhr Operational Hours FiT $ cent / kwhr 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 7.96 7.65 7.37 7.11 6.86 6.63 6.42 6.22 6.03 5.85 4100 4200 4300 4400 4500 4600 4700 4800 4900 5000 4.85 4.74 4.63 4.52 4.42 4.33 4.23 4.15 4.06 4.00 3500 5.69 3600 3700 3800 5.53 5.38 5.24 Contract Period : 20 years 32 3900 4000 5.10 4.97 60% Foreign finance 40% Local finance
Feed-in Tariff The total capacity of contracted (PV) projects through FIT program is 1615 megawatts.
BOO Projects
q Egypt announced 250 MW wind energy project, In Build Own Operate, BOO, scheme which attracted more than 30 international consortiums. q Based on FIT experience we got an excellent price, US$ 3.82 Cent per kwh, flat rate 20 years. q The PPA has been signed with the winning consortium of Toyota Anji and Orascom on 31/10/2017.
Environmental Impacts vthe expected electricity generation is around 49 TWh/year by 2022/2023 (including hydro). v Fuel Saving about 9.7 million TOE/year. v CO2 emission reduction 25.3 million TCO2/year 36
Energy Efficiency
ENERGY EFFICIENCY IMPROVEMENT On the Supply Side: Optimizing the share of the combined cycle power plants. Usage of super critical steam technology. Conversion of old thermal power plants to work in dual firing system. Improve power plants efficiency and rehabilitation and renewal of transmission and distribution networks to reduce fuel consumption and electrical losses. Modernization of the transmission network to be converted into smart grid.
ENERGY EFFICIENCY IMPROVEMENT On the demand side: In the residential sector varound 12 million CFL lamps were distributed with half price and 18 months guarantee. v Another initiative for distribution 13 millions LED lamps has been announced (until now, more than 11 millions LED lamp have been distributed). In street lighting sector: vcurrently, a new project has been set to replace 3.9 million lamps with more efficient ones.(1.4 have been replaced)
Other programs: Energy conservation measures (mainly efficient lighting and power factor correction) in many administrative buildings. Labeling and standards program for home appliances. Energy efficiency codes for residential, commercial and public buildings. Energy label for refrigerator
Egypt is a Hub for Electrical Interconnection Morocco Spain Algeria Western Arab countries Europe Tunisia Libya 120 MW EGYPT 200 MW Turkey Lebanon 450 MW Jordan 2000 MW Sudan 3200 MW Ethiopia Eastern Arab countries Syria 3000 MW Iraq Gulf Arab Countries Saudi Arabia Emirates Kuwait Bahrain Qatar In operation Under preparation African Countries Oman
Local Manufacturing MOERE established a localization program for Design, Installation and manufacture of Components of electrical equipment. The following are now achieved: 100% of the Transmission Networks up to 220 kv and all Distribution Network components. 42 % of power plants components. 30% of the wind energy equipment (70% at the end of 2020). The local share in the 1st solar thermal power plant project is 50%.
Local Manufacturing It's planned to reach 100% of PV components. The ministry of military production is planning to establish a factory a full chain to produce PV cells in Egypt using white sand available in Egypt Egypt has signed an MoU between NREA and Siemens during the Egyptian economic conference (March 2015) to build 2000 M.W. wind farms with EPC+F Scheme, in addition to establish a wind turbine blades factory with annual capacity of 340 M.W. we have received two offers from Vestas and General Electric with the same approach. There are several opportunities for the private sector to participate in the local manufacture such as: led lamps, dry transformers, electronic meters, DC networks, smart grids, wind turbines, CSP, solar heaters.
Cooperation between Egypt and EBRD Provide 165 million dollar to converge el shabab from gas turbin to combine cycle (under implementation now with 94% ). Provide 25 million dollar to converge west damiatta from gas turbin to combine cycle (under implementation now with 95% ). Development of Strategic Environmental and Social Impact Assessment (SESA), Ornithological Investigation for an Area of 2200 km2 East Of Nile and land demarcation (on going). To establish wind and solar projects. Strategic Environmental and Social Impact Assessment for an Area of 37.5 km2 at Benban (done) To establish solar PV projects.
Cooperation between Egypt and EBRD EBRD support EGYPT strongly to implement the FIT program by providing more than 1 billion dollar in cooperation with Green climate fund (GCF)(154 million us dollar for private sector to construct around 750 MW in benban.
Cooperation between Egypt and EBRD PROPOSED FIELDS FOR COOPORATION : Creation of Energy efficiency market. Smart meters and smart grid. Reinforcement of transmition and distribution grids Development of geothermal energy. Pumping and storage.
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