EGYPT – The Egyptian Ministry of Electricity and Renewable Energy has greenlit a bid from the Abu Dhabi Future Energy Company (Masdar) to develop solar power plants with an investment exceeding US$900 million.
According to an official source from Asharq Business, the project will involve the construction of power plants with a combined capacity of approximately 1,000 megawatts in Upper Egypt, including Aswan.
Masdar will oversee and finance the project under the build, own, operate (BOO) model. At the same time, the Egyptian Electricity Transmission Company (EETC) has committed to purchasing the entire output for about 25 years.
The final contracts and energy purchase price agreements are currently under review, and the New and Renewable Energy Authority (NREA) and EETC are expected to sign them by October.
The NREA will allocate land for the project on a usufruct basis, in exchange for 2% of the generated energy.
Masdar aims to complete these projects and connect them to Egypt’s national grid by the end of 2025, utilizing photovoltaic cells and solar panels. An Egyptian partner is expected to be selected to handle the project’s civil works.
Egypt’s broader renewable energy initiatives
In a related development, Minister Mahmoud Esmat, who oversees the Ministry of Electricity and Renewable Energy, highlighted ongoing wind energy projects with a total capacity of 3,450 megawatts.
These include collaborations such as the Red Sea project involving the Orascom-Engie-Toyota consortium, the Amont Al Nowais project, the ACWA Power initiative, and another Masdar project.
Additionally, the Minister revealed solar energy projects totaling 3,700 megawatts, including the Abydos 1 and 2, SCATEC, and Masdar ventures.
These details were shared during a session of the Supreme Council of Energy, chaired by Prime Minister Mostafa Madbouly.
Esmat emphasized ongoing discussions with solar energy developers to integrate battery storage systems, enhancing energy availability during peak periods.
As a result, battery storage systems totaling 2,840 megawatt-hours are being incorporated into these projects.
The Minister also underscored the collaboration with the Ministry of Planning and Economic Development to secure funding for network reinforcement projects, which will facilitate the connection and offloading of renewable energy by the summer of 2025.
To further boost private sector investment in renewable energy, Egypt has designated land to the NREA for the development of renewable energy projects, including green hydrogen production initiatives.
Incentives offered include providing land for project setup in exchange for a 2% stake in annual electricity production, reducing customs duties on components and spare parts for renewable energy systems from 5% to 2%, and lowering the value-added tax from 14% to 5%.
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