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)
Energy market motivations, challenges High energy demand and gross rates Limited finance Captive market Pre mature commercial rules 2
Expected / Targeted Future Energy Status up 2022 (conservative) Nuclear up 4000-5000 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 13500 MW (9%) (2022) Retain Oil and NG levels of production (40%) (2022) 3
Million toe Expected / Targeted Future Energy Status up 2022 (ambitious) 160 140 120 100 80 60 40 Retain Oil and improve on NG levels of production (5% annually) (61%) 56 60 63 67 71 75 80 Still need additional energy to get from else where (15%) 85 90 95 101 107 113 120 127 135 20 0 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 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
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
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
Load curve for August 13, 2014 الحمل )م.و ) 28000 م.و 24575 م.و 20297 م.و 7
Actions Restructuring: market since 1999 (BOOT, Regulatory) electricity tariff (2004, 2007, 2014). 8
Evolution of the Egyptian Electricity Sector Private Nationalization MOEE 7 Discos Busi. Sec. Regulatory Law 164 - EEHC Unbundling 1893 1962 1964 1965 1976 1987 1996 1997 1998 2000 2000 2001 PECE EEA Law 100 BOOT Law 18 Discos in Elec. Sec. Regulatory 9
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
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
Solar Atlas of Egypt high intensity of direct solar radiation ranging between 2000 3200 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.
Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding New& Renewable Energy Authority (NERA) (EPC contracts) since 1999 750 MW 1900 MW 13
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
NREA s Wind Energy Projects 550 MW in service + 1340 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
Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding New& Renewable Energy Authority (NERA) (EPC contracts) since 1999 750 MW 1900 MW Transmission (BOO) since 2009 250 MW 16
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
Build OWN & Operate (BOO) projects since 2009 250 MW wind project 18
Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding Merchant IPP since 2012 120 + 600 MW New& Renewable Energy Authority (NERA) (EPC contracts) since 1999 750 MW 1900 MW Transmission (BOO) since 2009 250 MW 19
األتفاقيات الثنائية Bilateral agreements (merchant scheme) Renewable energy sources by IPP Energy End users Fair payment including wheeling charges 20
Independent Power Producer (IPP) since 2012 120 MW + 600 MW 21
Renewable Energy Development Schemes Framework for RE Development Mechanisms Competitive Biding Merchant IPP since 2012 120 + 600 MW Fit/Quota since 2014 2000+2000+300 MW New& Renewable Energy Authority (NERA) (EPC contracts) since 1999 750 MW 1900 MW Transmission (BOO) since 2009 250 MW 22
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 (2015-2017) 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
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
Large scale projects Solar PV projects Number of successful applicants Capacity MW Total Capacity MW 51 50 2550 2 25 50 14 20 280 67 2880 25
Large scale projects Wind Projects Number of successful applicants Capacity MW Total Capacity MW 7 100 700 19 50 950 1 20 20 27 1670 26
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
Feed In Tariff Prices for PV Capacity Residential Less than 200 Kw From 200-500 KW From 500-20 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 14.34 $ cent / Kwh (or equivalent to 102.5 Pt/ Kwh) 28
Feed In Tariff Prices for Wind Energy No. of Operational Hours 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 3600 3700 3800 1 st Phase Price (5 years ) C $/KWH PT/KWH 11.48 9.57 82.08 68.4 2 nd Phase Prices for Wind Energy (15 Years) C $/KWH PT/KWH 11.48 82.08 10.56 75.53 9.71 69.46 8.93 63.83 8.19 58.58 7.51 53.68 8.93 63.82 8.33 59.53 7.76 55.49 7.23 51.70 6.73 48.12 6.26 44.73 5.81 41.54 5.39 38.51 29
آليات تنمية انتاج الكهرباء من الطاقات المتجددة Mechanism for electricity generation from Renewables Can they coexist? 30
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 841 1290 3636 606 5800 34900 25350 17400 Benban East Nile Kom Ombo Benban (Solar) 37 1800 Kom Ombo (Solar) 7 260 Yellow shaded cells represent the available areas 31
Locations of Wind Energy Project at the Red Sea 545 MW
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
Location for Wind Energy Projects at Gulf of Suez 328 km 2, 43 Plot, and 2100 MW Substation 1 500 MVA + 125 MVA (22 / 220 kv) Substation 2 500 MVA (22 / 220 kv) Substation 5 500 MVA(22 / 220 kv) Substation 4 500 MVA (22 / 220 kv) Substation 3 500 MVA (22 / 220 kv) 34
Locations of PV Project at Benban 37 km2, 38 Pieces, and 1800 MW 35
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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
Thank you for your attention NRE@idsc.net.eg Chairperson@nrea.gov.eg