Daily News Egypt

Government settles negotiations with Siemens Gamesa to establish €2bn wind farms - Daily News Egypt

Advertising Area

Advertising Area

Government settles negotiations with Siemens Gamesa to establish €2bn wind farms

Company to sell production at 3.2-3.4 piasters per kw/h

The government is set to finalise negotiations with Germany’s Siemens Gamesa for establishing wind farms with total capacity of 2GW and investments of €2bn ($2.24bn), after receiving a report from the Minister of Electricity, Mohamed Shaker, on the details of the agreement.

Sources at the ministry of electricity said the negotiations have been ongoing for a long time between the German company and the Egyptian Electricity Transmission Company (EETC) on the proposed tariff to sell the energy produced from the plants as well as the legal and technical aspects of the project.

The sources explained that the stations to be implemented on several stages under the build, operate, and own (BOO) scheme. Siemens Gamesa is responsible for the implementation of the project and the sale of produced capacities to the EETC.

The sources said that Siemens Games offered to sell energy at a lower price than what has been stipulated in the contract between the EETC and Toyota alliance which built the Gulf of Suez wind farm at 3.8 piasters.

The sources added that the tariff offered ranges between 3.21-3.40 piasters. They are calculated according to the wind speeds in the areas where the plants will be established.

The sources said that the El Sewedy-Marubeni consortium will finance the implementation of the first phase of the project with a capacity of 180 MW through Japanese institutions, including the Japanese International Cooperation Agency, in coordination with Siemens Gamesa, which, in turn, will bring the matter to the ministry of electricity.

In February, Daily News Egypt unveiled negotiations between Siemens Gamesa, El Sewedy-Marubeni alliance, and the Orascom-Toyota consortium to launch the first phase of the 180MW wind power plant.

Siemens Gamesa sent its offer to the EETC to implement wind farms with a capacity of 2GW after receiving the approval to implement the projects under the BOO system.

The sources said that Siemens Gamesa obtained land to implement only two phases of the project. It acquired more land plots in Ras Ghareb to launch a 180MW wind power plant, as well as in the Gulf of Suez for the construction of a 650MW plant.

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter