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Egypt- Siemens Gamesa sends offer to EETC to establish 2,000 MW wind energy plant

Siemens has sent its financial offer to the Egyptian Electricity Transmission Company (EETC) in order to implement a wind energy plant with a 2,000MW capacity after the approval of the armed forces to implement the projects using the build, own, operate (BOO) system.

Sources told Daily News Egypt (DNE) that the EETC has recently started negotiations with a German company in order to agree on the tariff of purchasing the energy produced from the plants. It is still in the phase of negotiations regarding the financial and legal items to implement the projects after turning the system from EBC+Finance to BOO.
The sources added that the EETC officials have demanded amendments from the German company, and agreed with the company on the types of turbine blades to be used in the projects, as well as the lands allocated for it. The agreement to purchase the energy will be signed within three months.

Moreover, the sources explained that the plants will be implemented on several phases. The first with a capacity of 180MW, and the second with a 650MW capacity. The German company will also handle launching the transmission plants in order to transfer the energy produced from the plants.
‘Siemens will establish a factory for turbine blades in Ain Sokhna after signing the agreement with a 2,000MW capacity because the factory is related to the capacities planned to be implemented in Egypt,’ the sources added.

DNE has also learned that Siemens is negotiating with the Toyota-Orascom alliance and ElSewedy-Marubeni coalition to establish the first phase of the project.
The Siemens wind energy plants are included in the memorandum of understandings signed during the economic conference in Sharm El Sheikh in 2015. The negotiations and implementation started two years ago.

The government has decided to amend the contracting system with Siemens to follow the BOO system instead of the EBC+Finance system.
Egypt plans to generate 20% renewable energy of the total energy produced by 2022. Egypt’s total energy production is currently estimated to be 50,000MW, including 2,400MW produced from hydroelectric power, which is an equivalent of 5.5%, in addition to a 1,000MW wind energy, and 170MW of solar energy, which is an equivalent of 2.6%.