Future of Renewable Energy in Egypt

Transcription

1 Future of Renewable Energy in Egypt Mohamed Salah ElSobki (Jr) Executive Chairman New and Renewable Energy Authority (NREA) Ministry of Electricity and Renewable Energy (MoE&RE)

2 Energy market motivations, challenges High energy demand and gross rates Limited finance Captive market Pre mature commercial rules 2

3 Expected / Targeted Future Energy Status up 2022 (conservative) Nuclear up MW (6%) (2022) 94% from fossil fuel and NG 5% hydro 1% from wind and others Reduce energy use by 8,3% (2022) Renewable - current 3000 MW and target MW (9%) (2022) Retain Oil and NG levels of production (40%) (2022) 3

4 Million toe Expected / Targeted Future Energy Status up 2022 (ambitious) Retain Oil and improve on NG levels of production (5% annually) (61%) Still need additional energy to get from else where (15%) / / / / / / / / / / / / / / / /22 From fuel products From N.G. From Hydro From Wind From Nuclear Local energy needs Local energy needs w ith energy eff. Additional needed energy 4

5 Energy market motivations, challenges, choices and targets. High energy demand and gross rates Limited finance Captive market Pre mature commercial rules Alternative resources of energy Attract finance Gradual change to commercial market Acceptance of commercial rules. 5

6 Electricity in Egypt Capacity 32GW (2.1 hydro & 0.55 wind) Secured supply to 99% of the population. Peak demand at 27,800 MW (Aug 2014), at 7% over the last decade. For a growth rate between 5% and 7 %, in year 2035 Peak demand: around 70 to 90 GW. RE: around of 30% up to 45%. 6

7 Load curve for August 13, 2014 الحمل )م.و ) م.و م.و م.و 7

8 Actions Restructuring: market since 1999 (BOOT, Regulatory) electricity tariff (2004, 2007, 2014). 8

9 Evolution of the Egyptian Electricity Sector Private Nationalization MOEE 7 Discos Busi. Sec. Regulatory Law EEHC Unbundling PECE EEA Law 100 BOOT Law 18 Discos in Elec. Sec. Regulatory 9

10 Actions Restructuring: market since 1999 (BOOT, Regulatory) electricity tariff (2004, 2007, 2014). Diversify of energy generation mix. Energy Efficiency both on the supply and demand levels. Develop the national grid. Develop schemes for promoting RE. 10

11 Wind Atlas of Egypt 1996, 2003 & 2005 Egypt enjoys excellent wind regimes, particularly in the Suez Gulf where the average wind speed reaches 10.5 m/sec at 50 m height. The wind energy resource is available in large regions on the Nile banks in the Eastern and Western Deserts where the average wind speed reaches 7.5 m/s at 80 m height. 11

12 Solar Atlas of Egypt high intensity of direct solar radiation ranging between kwh/m 2 /year from North to South. The sun shine duration ranges between 9-11 h/day from North to South, with very few cloudy days.

13 Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding New& Renewable Energy Authority (NERA) (EPC contracts) since MW 1900 MW 13

14 مناقصات تنافسية على مستوى ااألنتاج Competitive biding on the supply side Energy Energy RE sources by NREA EPC End users Under payment Prevailing tariffs (subsidized) 14

15 NREA s Wind Energy Projects 550 MW in service MW under implementation and Development 200 MW, in Cooperation with Germany & EU& EIB is under implementation and it is planned to be fully operated during this year (2015). Projects in the Pipeline (contracted for) 220 MW, in Cooperation with Japan (JICA) 120 MW, in cooperation with Spain. Projects under preparation 200 MW,, in cooperation with Germany, AFD, EIB, EU. 200 MW, with MASDAR 200 MW, in Cooperation with Germany, AFD 200 MW, in Cooperation with Japan (on the Nile Western Bank). 15

16 Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding New& Renewable Energy Authority (NERA) (EPC contracts) since MW 1900 MW Transmission (BOO) since MW 16

17 مناقصات تنافسية على مستوى ااألنتاج Competitive biding on the supply side Energy Energy RE sources by EETC BOO Fair Charge + Gov. guarantee Prevailing tariffs (subsidized) End users 17

18 Build OWN & Operate (BOO) projects since MW wind project 18

19 Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding Merchant IPP since MW New& Renewable Energy Authority (NERA) (EPC contracts) since MW 1900 MW Transmission (BOO) since MW 19

20 األتفاقيات الثنائية Bilateral agreements (merchant scheme) Renewable energy sources by IPP Energy End users Fair payment including wheeling charges 20

21 Independent Power Producer (IPP) since MW MW 21

22 Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding Merchant IPP since MW Fit/Quota since MW New& Renewable Energy Authority (NERA) (EPC contracts) since MW 1900 MW Transmission (BOO) since MW 22

23 FiT/Quota Renewable Energy Program Targets Within the framework of the announced target of 20/20. GoE has announced an interim target for the first regulatory period ( ) is to contract 4300 MW of both solar and wind energy, its breakdown is as follows: 300 MW for small solar systems 2000 MW of Medium and large size of Solar plants 2000 MW of Medium and large size of Wind plants 23

24 Small & Medium size projects For the 300 MW target 57 service providers are certified; Including 10 examined 21 under examination 23 completing their documentation 24

25 Large scale projects Solar PV projects Number of successful applicants Capacity MW Total Capacity MW

26 Large scale projects Wind Projects Number of successful applicants Capacity MW Total Capacity MW

27 تعريفة التغذية Feed in Tariff / Quota Energy Renewable energy sources FiT Payment according to Fit with Gov. Guarantee Energy Energy End users Real value 27

28 Feed In Tariff Prices for PV Capacity Residential Less than 200 Kw From KW From MW From 20 MW 50 MW Finance Self finance or by soft loan from Ministry of finance (4% interest rate) Self financed with soft terms from Ministry of finance (4% interest rate) Local Finance with local currency through soft terms from Ministry of Finance (8% interest rate) Foreign Finance Foreign Finance Price (Pt/ Kwh) 84.8 Pt / Kwh 90.1 Pt/ Kwh 97.3 Pt / Kwh 13.6 $ cent/ Kwh (or equivalent to 97.3 Pt/ Kwh $ cent / Kwh (or equivalent to Pt/ Kwh) 28

29 Feed In Tariff Prices for Wind Energy No. of Operational Hours st Phase Price (5 years ) C $/KWH PT/KWH nd Phase Prices for Wind Energy (15 Years) C $/KWH PT/KWH

30 آليات تنمية انتاج الكهرباء من الطاقات المتجددة Mechanism for electricity generation from Renewables Can they coexist? 30

31 Land for FiT About 7650 KM2 have been allocated for Implementing RE projects Areas Zone Suez Gulf (wind) Areas (km 2 ) 1220 Capacity MW 3550 West Nile Suez Gulf East Nile West Nile wind Solar wind Solar Benban East Nile Kom Ombo Benban (Solar) Kom Ombo (Solar) Yellow shaded cells represent the available areas 31

32 Locations of Wind Energy Project at the Red Sea 545 MW

33 Status of Wind Energy Sites 128 km 2 Environmental Impact Assessment (EIA) has been conducted. Shutdown on demand system will be applied. 240 km 2 Environmental Impact Assessment (EIA) has to be conducted. Gabal El-Zayt 2 MW Wind Turbine has been used to estimate the total area for each Wind Farm. 33

34 Location for Wind Energy Projects at Gulf of Suez 328 km 2, 43 Plot, and 2100 MW Substation MVA MVA (22 / 220 kv) Substation MVA (22 / 220 kv) Substation MVA(22 / 220 kv) Substation MVA (22 / 220 kv) Substation MVA (22 / 220 kv) 34

35 Locations of PV Project at Benban 37 km2, 38 Pieces, and 1800 MW 35

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38 Development of the Bank Guarantee 1% of the project estimated cost 2% of the project estimated cost Commercial operation Carry out measurements, studies, sign agreements with EETC, and get the interim license from EgyptERA Usufruct Agreement already signed and Land already availed 0.5% of the project estimated cost Implementation of the Project 0.5% of the project estimated cost 10 years after commercial operation 2% of the project estimated cost End of commercial operation (20 or 25 Years) Return Bank Guarantee to Investor Dismantle the equip. and return the land

39 Thank you for your attention