January 2018
Three International Entities to Compete for El Hamrawein Power Plant
According to an official in EEHC, three entities have qualified technically to compete for the first coal-fired power plant to be built in Egypt at El Hamrawein by the Red Sea, with an overall final capacity of 6,000MW:
- General Electric (GE) in association with Harbin
- A Japanese consortium led by Mitsubishi-Hitachi Power Systems (MHPS) in association with Elsewedy Electric and Orascom Construction.
- Chinese consortium including Shanghai Electric and Dong Fang Electric in association with Hassan Allam Holding.
Competitors will be required to submit their commercial offers by February 5th, 2018.
Final selection of the winning bidder is expected in June 2018.
almalnews
January 2018
UEEDC Issues Tender for the Upgrade of Distribution Networks in 6 Regions
Upper Egypt Electricity Distribution Company (UEEDC) issued a local tender for the upgrade of the MV and LV networks in six regions in the Governorates of Sohag (North and South), Qena (North and South), Luxor and Aswan. Due date for bid submission is 20 February, 2018.
almalnews
May 2017
ALFANAR invests USD 300mn in Egyptian Power Sector.
Deputy Vice Chairman: "Almotlaq" said to Al-Borsa news:
- $2.5 billion turnover of ALFANAR in 2016
- $75 million to launch the 50MW PV FiT plant in Benban, Aswan.
Power Purchase Agreement was signed with EETC. Financial Close is expected within 2 months. Completion of construction before the middle of 2018. Established temporary license for power production from EgyptERA, under the name of "Alfa for Solar Energy".
- Feed in Tariff FiT, currency exchange for payback of financing are the most important challenges in Egypt.
- Targeting investment of $300 million projects in the Egyptian power sector including new and renewable energy.
Alborsa news
May 2017
State Grid Corporation of China to build 1,210 KM 500 kV OHTL
Chinese company State Grid Corporation is building a 1,210 KM, 500kV OHTL for the Egyptian Electricity Transmission Company (EETC), Minister Mohamed Shaker informed Al Mal newspaper. The 500 kV line is expected to be completed within a year.
almalnews
May 2017
Upper Egypt Suffers From Rareness of Power Generation
Dr. M. Shaker, Minster of Electricity and Renewable Energy MoERE, said in a statement to Al-Mal newspaper, that Upper Egypt is suffering from rareness of power generating plants to the extent that a distance of 600 km in the direction of the south does not have one generating plant. This is reflecting on some technical aspects of the electrical network.
almalnews
May 2017
MoERE To Concludes New Electric Power Tariff this month
New tariff is to be announced this month (May), to be applied starting July 2017, Al Borsa news reports, citing Ministry of Electricity and Renewable Energy MoERE sources.
The sources also say that MoERE has decided to delay phasing out the electric power subsidy, for additional 5 years beyond the original plan that was July 2019. This delay is decided after the inflation pressure result from Nov. 3, 2016 currency re-valuation. Subsidies will be reduced to zero within three years for hospitals, hotels, and other high-consumption facilities.
The Egyptian Electricity Utility and Consumer Protection Regulatory Agency (EGYPTERA) is preparing the new Tariff structure. The new tariffs will take into account consumers' income level, so that the spending in electric power to be limited to 4% of the family's income.
The new tariff formula reportedly features four, rather than seven, residential consumption tiers:
- 0-100 kWh/Month - Poor subscribers.
- 101-200 kWh/Month - Limited Income subscribers.
- 201-600 kWh/Month - Normal subscribers.
- 601-1000 kWh/Month and above - High Consuming subscribers.
Price hikes will be implemented across the board, with different increases for each tier.
Alborsa news
May 2017
kwHr cost rises to 0.95 EGP/kwHr in 2017-2018
Al Borsa news reports, citing Ministry of Electricity and Renewable Energy MoERE sources that the average cost of kWHr during 2016-2017 as it reaches the consumer in Egypt reaches 0.95EGP/kWHr.
It was planned to be 0.637EGP/kWHr during this year before it was affected by the currency re-evaluation (from 8.88 to 18 EGP/$) that took place of Nov. 3, 2016.
The cost was 0.475EGP/kWHr in 2014 when the tariff was originally restructured to alleviate the subsidy for the electric power to consumers by 2019.
Alborsa news
May 2017
Siemens 50% Increase In Installed Capacity Adds To Egypt Market's Attractiveness/ Competitiveness
During the Finance and planning ministers talk FY2017-18 budget with the House, it was announced that:
- Output from the supergiant Zohr gas field and other recent discoveries are expected to boost Egypt's natural gas production by 30% once the stations are operational, El Garhy said. That coupled with a 50% increase in the government's electricity output once the new Siemens power plants come on stream will add to the Egyptian market's attractiveness and sharpen its competitive edge in the region, especially as the government pursues further reforms to its fiscal and energy policies.
- With petroleum subsidies falling to 33% of the total subsidy bill in FY2017-18 (compared to 64% in FY2011-12) and electricity dropping to 9%, there is room to increase allocations to social welfare and subsidy programs as well as to the provision of basic goods and services (which together will make up around 42.7% of the subsidy bill, up from 26% in FY2011-12).
- Energy subsidies are projected to cost the state EGP 140 bn, with EGP 110 bn of that figure earmarked for petroleum products and EGP 30 bn for electricity. Spending on major national infrastructure development projects is expected to grow to EGP 135.4 bn from EGP 91 bn this year, of which EGP 65 bn will be financed from state coffers. The balance provided through grants, loans, and other forms of financing.
http://gate.ahram.org.eg/News/1512903.aspx
April 2017
EETC delays this year's Wind Farm plans to next year, due to cost disagreements compared to FiT rate
EETC delayed its plan to issue tenders for (2 to 2.2 GW) wind farm projects originally planned to be issued this year. This delay is a result of the continuing negotiations with GE, Siemens, and Vestas. This is based on information from sources to Al Borsa newspaper.
The disagreements were apparently related to the FiT rate of USD 0.046 per kWh, which the three companies had felt was too little. GE had offered to build a 2 GW wind farm, while Vestas was bidding to build a 2.2 GW wind farm for USD 2.2 bn. Sources added that the ministry felt less inclined to accept their offers considering that it has signed for a number of agreements for wind farms with capacities of 250 MW with other companies including from Toyota /Orascom consortium, financed by EIB.
The Cabinet had approved the MOU signed with SIEMENS, at the Economic Forum of Sharm El Seikh 2015, for building 200 MW Wind Farm, in addition to building a wind turbine blades factory.
VISTAS has offered to build a 2.2GW Wind Farm through an EPC+Finance Contract worth Euro2.2 Billion.
GE had has offered to build a 2. GW Wind Farm through an EPC+Finance Contract worth Euro2 Billion.
Alborsa news
April 2017
As funding flows into solar power projects, Egyptera considers permanent license for FiT projects
EBRD, IFC, and ADB agreed, in principal, on funding USD 400-800 mn for feed-in tariff (FiT) phase two projects, sources tell Al Borsa. The Arab Fund for Economic and Social Development will also provide USD 85 mn for a 50 MW solar power plant project in Kom Ombo.
Separately, Sterling & Wilson, Shanghai Electric, TBEA, and two other unnamed companies were prequalified for a project to build a 20 MW solar power station, sources tell Al Borsa.
This followed Norway's Scatec Solar signing of a 25-year power purchasing agreement to supply energy from six solar power plants of a total capacity of 400 MW. KPMG's corporate intelligence practice said the Benban photovoltaic plant would be the world's largest, if successful.
https://home.kpmg.com/content/dam/kpmg/uk/pdf/2017/03/renewable-energy-in-egypt-the-green-opportunity.pdf
Alborsa news
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