The Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egypt ERA) granted the Toyota-Orascom-GD France alliance a 20-year license to produce electricity from a wind farm in the Gulf of Suez. The project will generate 250 MW with investments of €250m.
Sources from Egypt ERA said that a technical committee from the agency studied the documents presented by the alliance, including the financial closure and guarantees for the project.
The sources added that the license includes the establishment of a wind farm consisting of 165 turbines with a capacity of 2.1 MW each. The Egyptian Electricity Transmission Company (EETC) will purchase the energy produced from the station for a period of 20 years at the agreed price. The EETC will sell the produced power to distribution companies.
The sources noted that the EETC contracted with the alliance to purchase the produced energy at 3.8 piastres per kWh, noting that financial and technical negotiations have been concluded and the cabinet approved the contract.
The sources pointed out that the alliance will complete the measurement operations for the project’s land, as well as the contracting procedures for the purchase of turbines and electrical supplies for the station, which are expected to start by next year.
On the other hand, the cabinet approved the purchase of electricity produced from three other wind farms planned to be established by Lekela Power, Italgen, and Marubeni companies, with a total capacity of 1,170 MW.
The new wind farms will sell their produced energy at 3.6-3.8 piastres per kWh for a period of 20 years at the agreed price. The three projects will provide 10,000 direct and indirect job opportunities.
The ministry seeks to produce 20% of the total national electricity grid’s capacitty through new and renewable energy by 2020, as part of the ministry’s plan to diversify its sources of energy production and sustainable development in the sector.