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Elsewedy-Marubeni coalition awaits cabinet approval to launch two wind farms - Daily News Egypt

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Elsewedy-Marubeni coalition awaits cabinet approval to launch two wind farms

Electricity Ministry presents detailed memorandum for project, land will be allocated following government approval


The Elsewedy Electric-Marubeni Corporation alliance is awaiting approval from the Council of Ministers for the offer to build two 500 MW wind farms.

Informed sources told Daily News Egypt that the Ministry of Electricity submitted a detailed memorandum to the cabinet on the coalition’s offer to establish two plants to produce electricity from wind power. After the cabinet’s approval, the New and Renewable Energy Authority (NREA) will grant the land to the alliance.

The sources added that after obtaining the necessary land for the project and the start of surveying, the alliance will manage the necessary funding and sign with the Egyptian Electricity Transmission Company (EETC) for the transfer of electricity, in accordance with the power purchasing agreement.

According to the land map allocated to the NREA to establish wind farms and solar power plants, in cooperation with the private sector on an usufruct scheme, the set area is 7,872 sqkm.

The map indicates the allocation of 1,420 sqkm in the Gulf of Suez area to establish wind power stations with capacities of up to 7,000 MW, in addition to 2,200 sqkm east of the Nile for the establishment of solar and wind stations in the governorates of Beni Suef, Minya, and Assiut.

Moreover, 4,200 sqkm was allocated for the construction of solar and wind stations west of the Nile in the governorates of Beni Suef, Minya, and New Valley, as well as the allocation of another area in Kom Ombo to build solar plants with capacities of 1,500 MW and 15 sqkm in Kom Ombo Fares to establish another solar station.

The sources pointed out that the alliance is choosing between the Gulf of Suez and the western Nile regions for the construction of the two projects. Measurements are set to begin 10 days after the decision to allocate the land.

Elsewedy Electric signed a memorandum of understanding with Japan’s Marubeni Corpporation, to launch two 500 MW wind power plants under a (build, own, operate) BOO system, in March last year during President Abdel Fattah Al-Sisi’s visit to Tokyo.

The sources added that the price of energy produced from the two wind stations will not exceed 3.8 US cents per kW, which is the value contracted by the Egyptian Electricity Holding Company with the Toyota-Orascom-GD France alliance.

The sources explained that Elsewedy and Marubeni will start negotiations with banks to finance the two projects after obtaining the land and have agreed in principle with Japanese parties.

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https://dailynewsegypt.com/2018/03/28/elsewedy-marubeni-coalition-awaits-cabinet-approval-launch-two-wind-farms/
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