NREA requests extra 3 months to examine bids for Gulf of Suez wind farm

Mohamed Farag
3 Min Read

The New and Renewable Energy Authority (NREA) has asked the bidding firms, Siemens Gamesa, Vestas, and Senvion, for the 250MW wind farm in the Gulf of Suez to extend the validation of their bids for extra three months so that the authority can examine them.

Sources told Daily News Egypt that the three companies received the request from NREA and that they will approve it, but if the authority asked for more time extension, the companies would refuse and would bid at different prices.

The KfW, a German state-owned development bank, would finance the project with a €260m loan, with the participation of the European Investment Bank, the French Agency for Development, and the EU. The loan will be unlocked and granted to the winning company after awarding the project.

Seven international companies have submitted pre-experience bids to establish the project. NREA has settled on only three companies after reviewing the technical offers and financial solvency of each company. The sources said NREA will decide on the tender before the end of the year, especially since the financing banks are waiting to award the loan to the winning company, in addition to a special grant to finance part of the cost.

The ministry of electricity aims to produce 20% of energy from new and renewable resources by 2022, and seeks to open the way for the private sector and Arab and international companies to invest in projects.

NREA plans to boost renewable electricity production capacity to 10,000MW by 2022 by implementing projects in cooperation with the private sector.

Furthermore, the ministry of electricity decided to collect the proposals submitted by Arab and international companies, study them, and discuss the possibility of taking a decision on them in accordance with the medium- and long-term strategy, opening the way for everyone to compete through tenders or auctions offered by the Egyptian Electricity Transmission Company.

Companies that have intensified contacts with ministry officials and NREA over the past few weeks have also been informed that they have the opportunity to implement net metering projects, but no direct contracts or benefits will be directly awarded, where price will be the main determinant.

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