The Daily News Egypt

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

- 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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