The New and Renewable Energy Authority (NREA) has decided to provide the Canadian SkyPower company with 14 square kilometres west of the Nile to establish 600 MW solar power plants with investments of $500m.
NREA Chief Mohamed El-Khayat told Daily News Egypt in his first remarks that the cabinet approved the Canadian company presentation after submitting a competitive price. He explained that the land is provided on a right-to-use scheme, adding that following the company finishing studies and measurements and completing financial closure, it will sign the power purchase agreement with the Egyptian Electricity Holding Company (EEHC).
Moreover, El-Khayat said that the NREA has many land plots and will help companies and investors sign the contracts if they present good offers. “The land is granted on a right-to-use scheme,” he said, adding that many companies have submitted offers to establish wind farms and solar power plants, where the official proposals will be presented within days.
El-Khayat pointed out that after his appointment as chief of the NREA, he aims to prioritise attracting foreign investments and establishing wind farms and solar plants with the private sector to help achieve Egypt’s strategic goal of producing 20% of electricity through renewable resources by 2022.
In addition to that, the framework he seeks to implement includes five axes: raising the levels of operation of current projects to their maximum levels, the contribution of renewable energy to attract foreign investment to Egypt, working on achieving a strategy of producing 20% of the network capacity of solar and wind stations, selling electric power to consumption sectors at competitive prices, and setting mechanisms to reduce the risk of investment in small and medium-sized renewable energy projects.
In a parallel context, the Egyptian Electricity Transmission Company (EETC) signed an agreement to purchase solar power with Saudi company Acquaboor for three solar projects with a capacity of 120 MW in Banban, Aswan as part of the nutrition tariff projects.
The signing ceremony was witnessed by PM Sherif Ismail, Minister of Electricity and Renewable Energy Mohamed Shaker, Saudi Ambassador Ahmed bin Abdul Aziz Qattan, Chairperson of Aqua Power Mohamed Abu Nayan, and Chairperson of the Egyptian Electricity Transmission Company Gamal Abdel Rahim.
Shaker explained that the agreements signed between the EETC and Aqua Power stipulate that both companies will participate in the development, financing, construction, ownership, and operation of three solar power projects, with a capacity of 120MW.