Energy efficiency & Renewable Energy, Challenges and Opportunities in Egypt

Transcription

1 Energy efficiency & Renewable Energy, Challenges and Opportunities in Egypt By. Ahmed Kamal FEI/ECO SD Executive Manger Federation of Egyptian Industries- Environmental Compliance Office & Sustainable Development FEI- ECO SD 28 October

2 Contents 1- Introduction. 2- Energy consumption in Egypt. 3- Current and future electricity Sources in Egypt. 4- RE in Egypt, strategy policy projects. 5- RE resource assessment in Egypt. 6- RE development Scheme in Egypt. 7- RE challenges in Egypt. 8- introduction to FEI/ECO SD. 9- ECO renewable energy activities. 10- ECO energy efficiency activities. 11- ECO communication tools. 28 October

3 1- Introduction Energy sector is playing a vital role in Egypt's economy. However, the Egyptian government currently faces a real challenge to ; Make a strategic choice between satisfying the ever increasing national primary energy demand (94% oil and gas) that is being offered to endusers Maintaining a certain level of hard currency revenues from oil and gas exports at world prices, even with a growing risk of accelerated depletion rates of national proven reserves. The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to type of consumption (i.e. residential, commercial, industrial) and amount consumed. the government has been trying cut costs for subsidies. In July 2014, electricity prices were increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost. 28 October

4 2- Energy consumption in Egypt The main consumer of electricity in Egypt is the residential sector which accounts for 42% of the total consumption, followed by the industrial sector (28%). The consumption of the residential sector has been steadily increasing in the recent years. According to the Ministry of Electricity and Energy 28 October

5 3- Current & future electricity generation in Egypt Current electricity generation in Egypt RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

6 Generation plans by October

7 4- RE in Egypt RE Strategy in Egypt Cabinet approved a Solar Plan to install about 3500 MW by 2027 RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

8 RE Policies in Egypt RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

9 Projects under Implementation and Development RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

10 Feed-in Tariff for Wind Energy RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

11 Feed-in Tariff for Photovoltaic RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

12 Renewable energy in numbers 28 October

13 5- RE resource assessment 28 October

14 Lands allocated for renewable energy 28 October

15 6- Renewable energy development scheme 28 October

16 RE project through development scheme 1- Projects done through Competitive Bidding 1040 MW Wind Energy in operation, erection, and contracted. The 1st CSP plant is 140 MW including solar field of 20 MWe based on parabolic trough technology and 120 MW combined Cycle. It is in operation since July Projects Planned to be established through Competitive Bidding 200 MW, NREA/MASDAR 200 MW, in cooperation with French Agency for Development, Afd. 200 MW, in Cooperation with Germany, EU, Afd 200 MW, in Cooperation with Japan (on the Nile Western Bank). 28 October

17 3- Projects Planned to be established through Competitive Bidding NREA: 2 grid connected PV projects, 20 MW each, in Hurghada & Kom Ombo are b) EETC: 20 MW x 10 through BOO approach is c) NREA, EETC, and Dist. Co.: Electrifying 195 Remote Villages and Cities by using Photovoltaic System in Cooperation with the United Arab of Emirates (UAE) Government in addition to implement PV power plants with total capacity 37 MW. 4- feed in tariff rates for PV rooftop 28 October

18 7- RE Some Challenges Build a sustainable FiT mechanism to ensure and guarantee its success. Enforce the electricity network and extend it to sites enriched with natural resources; i.e. wind and solar. Build a transparent and reliable renewable energy spot market. Integrate RE plans into national economic, environment, and energy plans. Introduce an attractive long-term legislation framework. Motivate local financing institutions to support RE projects. Update knowledge and experience of local capacities. RE Week 2014, Berlin, Germany, Oct. 6-10, 2014

19 8- Introduction to environmental compliance office & sustainable development, federation of Egyptian industries FEI/ECO SD Establishment : Established in 2001 within the Federation of Egyptian Industries (FEI) with the aim of presenting services to the industrial SME concerning Sustainable Development. Mission : "Promoting green economy; aiming to achieve the sustainable development concept, enhance the competitiveness of the Egyptian industry and improve the environmental and social conditions. Objectives : Encourage industry's compliance with environmental legislations. Encourage orientation of the projects for the production of energy from renewables. Promote environmental investments. Improve occupational health and safety conditions inside industrial facilities. Create opportunities for investment and exportation. 19

20 ECO Financial Support and Soft Loan Financing renewable energy projects and new industrial equipment. Loans up to EGP 3 million per enterprise. Repaid over 5 years including one year grace period. With an 2.5% interest rate per year; can be obtained through the National Bank of Egypt or other participating banks. 20

21 ECO Energy Efficiency & Renewable Energy Sector Work started in energy efficiency and renewable energies in environmental compliance office since October the representatives of sector overlapping with 11 industrial sector in Federation of Egyptian industries. 21

22 The main activities of the energy sector is the following:- Preparation of technical studies on the applications of the improvement of energy efficiency and financing of best available techniques by loan of revolving fund. Initial reviews and detailed audit to power various industrial sectors. Application of energy management systems in accordance with standard ISO The use of new and renewable energy technologies in industrial applications. contribute to the reduction of greenhouse gas emissions. Supporting investment in energy generation from waste. 22

23 9- ECO RE Energy Activities 28 October

24 Egyptian Renewable Energy Cluster Initiative ERECI FEI/ECO SD is participating in ERECI project to develop RE industry in Egypt and all RE stakeholders. ERECI. Specific objective: Develop several networking initiatives in Egypt and Europe aimed at establish long term and multidisciplinary public-private partnership. Stimulate a favourable technology transfer environment in order to enhance technological and not technological innovation and improve the Egyptian companies competitiveness. Strengthen cooperation with European and national counterparts via exchange of relationship, exchange of best practices, study visits, and brokerage events Enhance the Egyptian industry competitiveness for the development of cooperation industry/research. Define the bottle necks gaps in the technology transfer activities. Encourage the of innovation policy development 28 October

25 Local Manufacture Network With the idea of having a network from different local manufacturers to develop and encourage the Egyptian solar energy applications manufactures in order to compete with international products, increase the number of local manufactures and decrease the current production cost. support local manufacture for Solar Energy to increase the market share for local manufacture 25

26 Site visits to Manufacture and some of implemented applications 26

27 Renewable Energy Switch to day light as innovative idea to save money and carbon offset. Training courses in greater opportunities of using Renewable energy sources application in industries : SWH Biomass PV Biogas 28 October

28 - Detailed Audit 10- FEI/ECO SD activities for EE Objective of Detailed Audit control energy consumption cost. identifying technical tool to reduce consumption to a minimum. Classifying the whereabouts of wasteful consumption, and techniques necessary to implement a set of actions and projects that ultimately lead to reduce consumption of energy as a specific energy consumption. 28

29 Application of technologies for improving energy efficiency Provide technical and financial support for the industrial sectors and financing of the bat up to 3 million L.E and 2.5% administrative expenses by loan fund. 29

30 the most important technologies that have been applied improve combustion efficiency. Recover exhaust heat. Improving steam systems Advance thermal insulation. Replacement of light sources are not provided with high efficiency. Improve the power factor. Replace conventional motors by high efficiency one. Speed control of motors that operate on variable loads such as pumps, air blowers 30

31 Selected Examples of Important Application 28 October

32 Waste Heat Recovery Supplying melting furnace of sodium and potassium by heat exchangers to preheat combustion air and reduce heat losses and fuel consumption values and improve the quality of each ton product in addition to reduce gaseous pollutants. investment cost = 275, 000 L.E Saving = 96,000 L.E /year. The payback period = 34 month 32

33 Fuel switching Erecting unit for melting lead and antimon alloy sealed and working by LPG rather than the open oven to reduce electricity consumption and reduce pollutants lead oxides of refractory Crucible cover which posed a threat to the health of workers and the high consumption of electrical energy Implementation costs = L.E Annual savings = L.E / year Pay pack period = 38 Month 33

34 Improving steam systems &Insulation Installation of steam tank and went to retrieve water blow down heat content and repair leaks and insulation inspection in addition to maintenance steam traps for condensate. Annual savings = 48,500 L.E/year. Investment cost = L.E. The Pay back period = 15 months 34

35 Improving combustion Efficiency Adjust the thermal performance of boilers and furnaces, and improvement of combustion efficiency by controlling the ratio of air to fuel using mobile gas analysis devices to reduce fuel consumption between 1-7%, which helps to reduce pollutants and their conformity with environmental law 35

36 Power factor correction Reduction of loss in distribution network and increase internal network capacity for electricity. Increase the share of productive uses in generating capacity. Contractual capacity reduction and the use of different scale for calculating the cost of KWh consumption. reducing emissions from reduced the decrease in the internal network which represent 5% of annual consumption of electrical energy. 36

37 Power factor correction Installation of condensers to improve PF from annual saving = L.E/year as a result of the provision for the estimated annual reduction due to low power factor. And reduce energy demand payments. Investment cost = 150,000 L.E. Pay pack period = 18 months 37

38 Replacement of light sources with high efficiency lamp Replace fluorescent longitudinal 60 * 60 (80 watt ) headlamp by led provided 32 watt الخاصية كشاف ليد 60cm*60cm *4 8W الكشاف المكافئ الذى سيتم تغيره بكشاف لد 40W> القدرة 80% وفر الطاقة عند إاإلستبدال SMD نوع اللد 70 lm/w الفاعلية ) v)ac جهد المدخل lm الفيض الضوئى 72 عدد وحدات اللد 50000hr عمر التشغيل 38

39 Replacement of light sources with high efficiency lamp The total investment required to replace bulbs = L.E Savings resulting from the reduction in the rate of consumption of lighting = L.E/year period of investment recovery = 36 months 39

40 Controlling separate AC units download Use efficient and less consuming and more environmentally friendly in accordance with the energy efficiency code card upon consumption of the model if replace current devices or when you buy new hardware. 40

41 Control flow velocity of air pump injection machines Installing motor multi-speed VSD saving of 20-50% of the energy consumed in the management of the motor pump during injection. The expected savings when installing motor multi-speed for 8 injection machines = L.E 41

42 EE Project Potential Energy Reduction Application Waste Heat recovery A) 30 % Boiler installations and furnaces All sectors Combustion efficiency improvement A) 5 ~ 10 % All sectors Steam system improvement B) 10 ~ 20 % Food, chemical, textile sectors Cogeneration A) 50 % Food, chemical, textile sector companies with low-pressure steam demand Absorption chillers A) (N/A, economic savings only) Cooling demand above 5-10 ºC (mostly for AC) Improving cooling system especially in food sector Compressed air generation/ distribution 10 ~ 15 % All sectors with pneumatic systems improvement B) Cooling system improvement B) 10 ~20 % Food sector Boiler tune-up B) 10 % Food, chemical, textile sectors Fuel switching B) 5 ~ 10 % All sectors High efficiency lighting B) % All sectors, commercial buildings High efficiency motors, pumps and fans B) 10 ~15 % All sectors Variable Speed Drive B) 20~30 % All sectors, especially for pumps and fans Power factor improvement B) 5 ~ 10 % All sectors

43 Successful Model Linking Stakeholders to Decision Makers Business Networking Institutional and Capacity Building Awareness-Raising and Training

44 11- ECO Communication Tools Magazine Press release Brochures Daily news Success Stories Video 44

45 26A Sherif Street, El Emobilia building 7th floor Downtown, Cairo- Egypt Tel: Fax: October