CAIRO: Coming to a Cairo that’s still bright and sunny towards the end of fall, Dii GmbH, the renewable energy consortium of European companies, convened on Wednesday for the 2nd annual conference to discuss prospective renewable energy initiatives in North Africa and Europe.
With Egypt’s vast deserts and abundance of sun and wind, experts expressed great interest in the country’s potential.
Caio Koch-Weser, vice chairman of Deutsche Bank AG, stated that the project ideas of Dii and its affiliated companies will need to be supported by the private sector because international bodies have been lagging in their decisions.
“We need new approaches, the UN negotiations are a bit stuck and they go slowly when it comes to discussions regarding climate change,” said Koch-Weser. “Being able to step forward with these projects, having money on the table shows that we want to move forward.”
Kock-Weser also stressed the importance of Egypt, hoping that its new government will be on board with implementing new renewable energy projects.
“Just like in the past, Egypt will need the support of other markets, the European Union and the Mediterranean initiatives are very important for Egypt,” he said.
“I can say for the private sector… Egypt has resources and such projects will help create needed opportunities in the country; I’m optimistic for Egypt and its potential investments.”
In 2008, Dii helped create the power plant of Kuraymat, which is about 100 kilometers south of Cairo and is the first of its kind in Egypt.
Costing around €250 million, the plant, which has been under construction since the start of 2008 and the summer of 2011, has a power station with a capacity of 250 megawatts and it is connected to the grid.
The solar field in Kuraymat is part of a hybrid power plant that will use both solar power and natural gas to generate electricity.
According to Dii, skilled Egyptian workers were employed to create the plant that now benefits from 2,400 kilowatts hours of solar irradiation per square meter and year on average.
It currently saves natural gas resources and supplies nearly two million people with energy, operating 24 hours a day, but as a hybrid plant, it can be operated without interruption.
Dii pointed out that such a success can serve as an example for future projects, not only in the region, but the rest of Egypt.
Paul van Son, chief executive of Dii, pointed out that it is especially vital for the private sector and the government to have discussions in the midst of the changes sweeping across the Middle East and North Africa (MENA) region.
He pointed out that this week’s discussions, which will last throughout the weekend, have been the most productive compared to the past years.
“The Arab Spring has showed more openness when talking about renewable energy, the discussions have never been as deep as they have gotten today,” he said to reporters on Wednesday morning.
According to Son, economic cooperation is a key factor that would help the region move forward in these difficult socio-economic conditions.
“Joint cooperation in the field of renewable energies will bring the Mediterranean nations together and promote sustainable development in the region,” he said. “This includes the creation of jobs as well as offering perspectives to the younger generations.”
With the region’s dwindling fuel resources and its potential for sun and wind, the region could become a hub for renewable energy in the years to come.
The first map towards a self-sustained market will be laid out in a testing reference project phase in 2011 to 2020, Son pointed out.
These first steps will begin with lighthouse testing projects in Morocco, Tunisia, and Algeria.
Moreover, from 2020-2035, the “scale-up” phase will look to include various projects in several parts of the MENA regions. According to Son, it will include transitional connections, revisions of regulatory framework, and support mechanisms.
Taking part in the day’s discussions was Giuseppe de Beni, managing director of Italgen and ItalCementi Group, the first foreign company to inject a direct investment into Egypt’s renewable energy sector.
ItalCementi, which entered the Egyptian market in 2011, owns shares in Suez Cement Group in Egypt. ItalCementi got the idea to invest in a wind energy plant in Gabal El Zeit near the Gulf of Suez, to provide electricity for its cement company.
According to de Beni, the plant has a capacity of 120 mw.
“Ten days ago, we also discussed with the local governor in Suez the idea to establish a salt desalination plant,” said de Beni.
“These new projects will be a renewed confidence in trust of foreign investors in the country; the very bold impact of the project will increase confidence in Egypt’s market.”
