General Electric (GE) presented an offer to the New and Renewable Energy Authority (NREA) to establish a wind power plant with investments of $150m.
The NREA is studying the offer in accordance with the measures and regulations of law 203/2014, which aims to promote producing power from renewable sources, company Chairman Mohamed Salah El-Sobky said.
The law allows for the establishment of renewable energy projects through tenders offered by NREA or the Egyptian Electricity Transmission Company (EETC), or through the Build Own Operate (BOO) system. The law also stipulates that the power generated from these plants be sold to the EETC.
According to Article 2 of the law, the selling price of the power generated from these projects will be determined based on a study by the Egyptian Electric Utility or through agreement with investors.
As for the BOO system, investors sell the power generated from their plants in accordance with the feed-in tariff, for a maximum period of 25 years.
El-Sobky told Daily News Egypt that GE offered to build a factory to manufacture rotor blades for wind turbines, similar to the factory being implemented by Siemens. He said the NREA will complete studies on the offer’s technical and financial aspects within two months.
Egypt is currently focusing on renewable energy to secure citizens’ electricity consumption, El-Sobky said, noting that Egypt has great potential for solar and wind energies.
El-Sobky said using renewable energy will cut down reliance on traditional fossil fuels and help create in excess of 100,000 job opportunities by injecting new investments.
Egypt has entered a partnership agreement between African states to stimulate usage of renewable energy until 2020. Egypt will rely on renewable energy to reach the equivalent of building 10 coal-fuelled power plants.