Egypt

Egypt

New 500MW site in Ras Ghareb granted

EGYPT: A consortium comprising French utility Engie, Egyptian company Orascom Construction, and Japanese firms Toyota Tsusho and Eurus Energy has signed an agreement to develop a new 500MW project.

French firm Engie currently operates 425MW of renewable energy in Africa
French firm Engie currently operates 425MW of renewable energy in Africa

The agreement was signed with the Egyptian Electricity Transmission Company (EETC) as the off-aker and the New & Renewable Energy Authority (NREA) as the landowner.

It is destined to be Egypt's largest wind site when completed.

The project will be developed on a build-own-operate (BOO) basis. It is located near Ras Ghareb in the Red Sea governate, near the consortium's 262.5MW site currently under construction.

According to the NREA, the consortium will receive a tariff of $31.7/MWh for the new project, 17% less than the $38.2/MWh agreed for the earlier plant.

The lower tariff is explained by the size of the project and to provide "a benchmark" for future licences, NREA said.

All being well, the consortium expects to secure the necessary permits and reach financial close by the end of 2019.

Market entrance

In a separate move, integrated French renewable energy firm Voltalia recently opened an office in Egyptian capital Cairo.

The company is targeting 800MW of wind and solar projects over the next five-to-eight years on its own account and for international clients. It will also offer operation and maintenance services.

While Voltalia is working on a number of wind energy projects, it is too early to communicate on them at this stage, the company said.

"Africa is a key area for Voltalia’s future growth: we are leveraging our multi-energy strategy and our expertise in off-grid installations to expand on the continent," Voltalia said.

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