The New and Renewable Energy Authority (NREA) and Germany’s BELECTRIC will, within weeks, sign a contract to implement a 50 MW solar plant at Zaafarana near Ain Sokhna.
NREA Head Mohamed Al-Khayyat told Daily News Egypt that the project will be financed by the German Development Bank (KfD), as part of the cooperation between the authority and German banks that support green projects.
It is planned that the project, which will be implemented in the second half of 2021, will contribute to the production of about 90m KW/H, saving the equivalent of 18,000 tonnes of oil. At the same, the plant would also help reduce emissions by about 50,000 tonnes of carbon dioxide.
He said that this project is projected to be one of Egypt’s largest wind energy projects, which will be established on land allocated to the authority on the western coast of the Gulf of Suez. This area, located in the Red Sea Governorate, is characterised by high wind speed.
He added that the investment cost associated with the project amounts to about €250m, which is financed through an agreement between Egypt and its European partners. These include the French Development Agency, the European Union (EU), the European Investment Bank (EIB), and the German Development Bank (KfD).
Al-Khayyat added that the NREA is preparing to launch two tenders for the construction of two 50 MW solar power stations in the Kom Ombo area, with funding from the Arab Fund for Development (AFD). Alongside this, another 20 MW solar power plant in Hurghada will be constructed, funded by the Japanese International Cooperation Agency (JICA).
The NREA is working to launch them as soon as possible, especially since their financing “has been provided and approved by Egypt’s banking authorities”, Al-Khayyat noted. These projects are part of Egypt’s renewable energy plan to bring the share of renewables’ in the country’s network to 20% by 2022, and to over 42% by 2035.
Al-Khayyat noted that coordination is underway with Danish company, Vestas, to obtain the land needed to launch a wind farm with a capacity of 250 MW.