IQ Power al­lo­cates $300m to in­vest in so­lar en­ergy projects in Egypt

Com­pany to con­struct Red Sea sta­tion in co­op­er­a­tion with Gi­gawatt Global, Power House, says Al­haj

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

The Amer­i­can com­pany iQ Power Inc has al­lo­cated $300m to in­vest in so­lar en­ergy projects in Egypt in the com­ing pe­riod.

Sharif Al­haj, CEO and busi­ness devel­op­ment di­rec­tor of iQ Power for Egypt, said that the com­pany aims to sign con­tracts with ca­pac­i­ties reach­ing 300 MW, with plans to work within al­liances to study ten­ders put for­ward by the Egyp­tian Elec­tric­ity Trans­mis­sion Com­pany (EETC).

The Min­istry of Elec­tric­ity aims to con­tract with the in­vestors on two schemes: com­pet­i­tive ten­ders, which are ad­min­is­tered through the EETC putting for­ward projects on BOO (build, own, op­er­ate) schemes, while the other sys­tem is done through of­fer­ing an in­de­pen­dent power pro­ducer (IPP), in which in­vestors sell the elec­tric­ity they pro­duce di­rectly to con­sumers via the na­tional elec­tric­ity grid and pay fees to the gov­ern­ment.

Al­haj told Daily News Egypt that iQ Power has teamed up with Gi­gawatt Global and Power House to launch a 3 MW so­lar power plant to pro­vide elec­tric power to a ho­tel in the Red Sea re­gion.

He ex­plained that the pro­ject will be im­ple­mented over four phases, each out­putting 750 kW.He noted that other ho­tels have re­quested to ob­tain feed di­rectly from the com­pany, which will be ex­am­ined next month.

Ac­cord­ing to the agree­ment, the com­pany will pro­duce and sell en­ergy di­rectly to con­sumers, known as an IPP sys­tem, which in­volves the in­vestor con­tract­ing di­rectly with con­sumers.The con­tract­ing com­pany will pay the elec­tric­ity trans­fer fees to the Min­istry of Elec­tric­ity.

Al­haj ex­plained that his com­pany signed an agree­ment to sell en­ergy to the ho­tel for 25 years, pric­ing a kilo­watt at less than the price of the EETC, not­ing that the ho­tel used to rely on costly diesel for elec­tric­ity.

Ac­cord­ing to the Elec­tric­ity Law, each con­sumer has the free­dom to choose their own elec­tric­ity sup­plier and the Egyp­tian elec­tric­ity mar­ket is based on free com­pe­ti­tion. Con­sumers have the right to con­tract with pro­duc­tion com­pa­nies or ver­i­fied dis­trib­u­tors via bi­lat­eral con­tracts.

The Min­istry of Elec­tric­ity has de­vel­oped a plan to im­ple­ment new and re­new­able en­ergy projects as part of its strat­egy to diver­sify sources of elec­tric­ity pro­duc­tion. It in­cludes the pro­duc­tion of 20% of Egypt’s to­tal elec­tric­ity from new and re­new­able sources by 2020.

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