Siemens secures 2GW turbine deal in Egypt

EGYPT: The government has signed a framework agreement with Siemens for the supply of approximately 600 turbines for up to 12 projects.

Some of the projects will be located in Egypt's Nile Valley
Some of the projects will be located in Egypt's Nile Valley

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The formal agreement is a continuation of the memorandums of understanding between Siemens and Egypt, announced in March.

Siemens will manufacture the turbines for projects in the Gulf of Suez and West Nile regions. Specific site locations are yet to be determined.

A spokesperson for Siemens said the D3 3MW platform is currently "earmarked" for the projects but the local developers may decide to change the turbine, depending on site conditions.

The projects are being developed on a case-by-case basis with the construction of the first expected in 2016, the spokesperson added.

Siemens will also set up a blade manufacturing facility in the Ain Soukhna region, in northeast Egypt on the banks of the Gulf of Suez. The facility is due to be set up in 2017, creating 1,000 jobs.

The wind deals are part of a larger framework agreement, which will see Siemens supply 16.4GW of electricity generation to Egypt. This will increase Egypt's capacity by 50%.

Growing energy capacity is a priority of the Egyptian government, and wind is set to play a major part in that. The government launched a tender for independent power producers under the new feed-in tariff (FIT), targeting 2GW of wind by 2017.

In February, 27 companies and consortiums were qualified to build wind projects of up to 50MW each in a first round of tenders.

Spanish manufacturer Gamesa has also won 340MW of orders in Egypt in 2015 so far, across two deals.

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