Through its ongoing projects, Egypt will achieve a 15,000 MW surplus of electricity at the end of next year which the ministry is considering exporting abroad, said a senior official at the Ministry of Electricity.
The ministry pays the cost of the projects through self-financing and the proceeds of selling energy to all sectors, besides the loans obtained with five-year grace periods and 15-year repayment periods.
The ministry does not have any issues finding the required funds for projects, as most of the projects are implemented through the ABC+FANCE system, which was recently adopted by the government to accelerate the implementation of projects.
The Ministry of Electricity will meet the needs of all sectors, including household, commercial, and industrial. However, the Ministry of Petroleum has guarantees for electricity in order to secure the required fuel, the official said.
The ministry signed memoranda of understanding (MOU) with companies from China, Japan, and South Korea to invest in electric-power projects for different technologies, such as the combined cycle technology and the clean coal technology, Ministry of Electricity spokesperson Mohamed Al-Yamani said.
These projects will be implemented through the EPC+FINANCE system.
The ministry penned a medium-term plan to add new capacities of up to 21,952 MW to the national grid by 2018. The required investments for these projects are estimated at $13.9bn.
The electricity sector’s strategy focuses on strengthening the electric grid and extending new lines to improve its quality. The strategy also aims to link the national grid to other countries, such as the ongoing project with Saudi Arabia.
Former head of the Egyptian Electric Utility Hafez El-Salmawy said that the strategy aims to promote the participation of the private sector in generating and distributing electricity. The release of the feed-in tariff system will facilitate this.
The Unified Electricity Law promotes investment and separates the Egyptian Electricity Transmission Company and the Egyptian Electricity Holding Company, which will ensure transparency and impartiality to all producers and distributors of the public and private sector.
El-Salmawy praised the efforts of the ministry for achieving a surplus of 5,000 MW.