Aqua Power, Al­cazar await gov­ern­ment ap­proval to build 2 wind farms for worth $700m

Sell­ing price ranges from 3.6 to 3.8 cents and the al­lo­ca­tion of land af­ter cab­i­net ap­proval

The Daily News Egypt - - Front Page - By Mo­hamed Farag

Aqua Power Sys­tems and Al­cazar En­ergy are wait­ing for the gov­ern­ment’s ap­proval to launch two wind farms with to­tal ca­pac­ity of 500 MW, with in­vest­ments of $700m.

Gov­ern­ment sources said that a com­mit­tee from the Min­istry of Elec­tric­ity was tasked to study an of­fer pre­sented by Aqua Power to launch a 250 MW wind farm, and an­other of­fer pre­sented by Al­cazar to build a 250 MW wind farm.

The sources added that the com­mit­tee has fin­ished study­ing the two pro­pos­als and sub­mit­ted its re­port to the Min­is­ter of Elec­tric­ity, Mo­hamed Shaker. The two pro­pos­als are ex­pected to be dis­cussed dur­ing the next cab­i­net meet­ing.

They fur­ther added that the two com­pa­nies of­fered to sell the pro­duc­tion of their sta­tions at 3.6 – 3.8 cents.

Ac­cord­ing to the sources, the New and Re­new­able En­ergy Au­thor­ity (NREA) will grant the two com­pa­nies the re­quired land to es­tab­lish their power projects af­ter the gov­ern­ment’s ap­proval.

Ac­cord­ing to the NREA, the land to be al­lo­cated ac­cord­ing to the usufruct sys­tem amounts to 7,872 square km.The land is di­vided into: 1,420 square km in the Suez Gulf area to es­tab­lish a wind farm with a ca­pac­ity of 7,000 MW, as well as 2,200 square km to es­tab­lish so­lar and wind power plants in Beni Suef, Minya and As­siut.

The sources pointed out that the Elec­tric­ity Law con­trib­uted to at­tract more pri­vate com­pa­nies to in­vest in the en­ergy sec­tor, es­pe­cially that the gov­ern­ment does not seek to com­pete with the pri­vate sec­tor and aims to cre­ate more jobs.

The sources noted that some com­pa­nies have not sub­mit­ted yet their ini­tial pre-ap­proval let­ters of banks to fi­nance wind power projects in the feed-in tar­iff pro­gramme.

Even though, other com­pa­nies seek to im­ple­ment other projects through com­pet­i­tive bid­ding sys­tem, which means that the re­new­able en­ergy sec­tor is at­trac­tive for in­vest­ment.

1,420 square km in the Suez Gulf area will be al­lo­cated to es­tab­lish a wind farm with a ca­pac­ity of 7,000 MW

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