Ministry of Electricity & Renewable Energy New & Renewable Energy Authority (NREA) Annual Report 2012/2013 Contents Speech of the Chairman Organization Chart of The Ministry of Electricity & Energy Organization Chart of New & Renewable Energy Authority Members of the Board Statistical Information Vision Strategy Policies Incentives for the Renewable Energy Wind Energy Solar Energy Activities Under Clean Development Mechanism (CDM) Testing and Research Center Regional and International Co-operation European Union Co-operation in the Field of Research project Capacity Building Participation in International & Local Events Related Links 1 New & Renewable Energy Authority (NREA) 3 5 7 9 11 12 12 13 15 16 27 43 45 49 53 54 55 56 Annual Report 2012/2013 2 Speech of Eng. Shaaban Khalaf Ahmed Executive Chairman Within the framework of actions and efforts to implement the Egyptian Renewable energy strategy that the renewable energy share reaches 20% of the total generated energy by 2020 as 12% wind, 6% Hydro and 2% solar. Besides Egyptian Solar plan to install about 3500 MW from solar energy by 2027. Currently a 200MW wind farm project is under implementation in Gulf of Suez which is planned to be operated in July 2014, besides the preparation to implement 6 governmental projects with total 1140 MW in Gulf of Suez and West Nile. Also, it is planned to select the best technical and financial offer in the competitive bidding to build a wind farm 250 MW based on Build, Own and Operate (BOO) system which is planned to be operated in 2016. Also, 6 lands in Gulf of Suez were issued to be availed to the investors with auction system to implement 6 wind farms each 100 MW. 3 New & Renewable Energy Authority (NREA) In order to maximize the benefit from solar energy resources which Egypt is endowed with, as well as the sharp reduction in the cost of electricity generating from photovoltaic systems, two solar power plants with photovoltaic systems connected to the grid each 20 MW in Hurghada and Kom Ombo in Aswan are under preparation. It is planned to be operated in 2016 & 2017 respectively. A call for the investors was announced to submit their prequalification documents to participate in the bid for implementing 10 power plants with photovoltaic systems each 20 MW in the land allocated to New and Renewable Energy Authority (NREA) in Kom Ombo with BOO system. It is planned to be operated in 2017. Currently the preparation to implement a solar power plant 100 MW in Kom Ombo is underway, which is planned to be operated in 2017. In the context of encouraging the use of photovoltaic systems in buildings, the Board of Directors of the Egyptian Electricity & Consumer Protection Regulatory Agency agreed to apply the net metering system, which allowing to the consumers to install Photovoltaic systems on the roof of buildings and sell the electricity produced to the national grid. To maximize the benefit from this policy and to encourage the rest of the governmental entities to apply this system in their buildings, the Ministry of electricity and Renewable Energy installed 2 power plants each 40 kw on the roof top of its buildings. Finally, in Sept. 2013 the Cabinet decided to oblige the heavy industries consumption to use a percentage from its electricity consumption from renewable energy resources. This report will address the status of renewable energy activities in Egypt and the efforts carried out by the Ministry of Electricity and Renewable Energy represented in New and Renewable Energy Authority during the year 2012/2013. Annual Report 2012/2013 4 5 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 6 H. E. Minister of Electricity & Renewable Energy Chairman of the Board Executive Chairman Financial Affairs & Logistics Sector Economic & Commercial Affairs Sector Human Resources & Administration Sector Projects Sector Operation & Maintenance Sector Procurement & Stores Dept. Financial Affairs Dept. Budget Dept. Finance & Foreign Fund Dept. Human Resources Dept. Administrative Affairs Dept. Project Implementation Dept. Designs and Specifications Dept. Operation of Solar Plant Dept. Maintenance Dept. Operation of Solar Plant Operation Dept. Measurement Tools & Control System Dept. Wind Energy Dept. Photovoltaic Dept. Testing Dept. Follow-Up Dept. Solar Thermal Power Generation Sector Legal Affairs Dept. Annual Report 2012/2013 8 New & Renewable Energy Authority (NREA) 7 Solar Thermal & Energy Conservation Dept. Executive Secretary of Board Members Technical Affairs Sector Planning & Follow-up Dept. Engineering Studies Economic & Environmental Dept. Security Dept. Biomass Dept. Administration & Organization Dept. Studies, Researches & Testing Sector Foreign Relations & Agreements Dept. Deputy Chairman for Administrative & Financial Affairs Deputy Chairman for Projects & Operation Deputy Chairman for Technical Affairs, studies & Researches Documentation & Information Center Dept. Training & Promotion Dept. Administrative & Financial Performance Monitoring Dept. Public Relations Dept. Citizens Services Dept. Safety & Occupational Health Dept. 9 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 10 Eng. Omneya Mostafa Sabry Deputy Chairman for Technical Affairs, Studies & Resarch Eng. Mohamed Abd El Motelb Professor, Ain-Shams University Prof. Dr. Amr Amin Professor, Helwan University Eng. Omar El-Shawadfy Director of the National Center for Planning State Land Uses Eng. Fathallah Shalaby Representative of the Egyptian Electricity Transmission Company Eng. Maher Mohamed El Ghandour Representative of the Canal Electricity Distribution Company Eng. Fathy EL-Said Awad Representative of the Egyptian Electricity Holding Company Eng. Mohamed Hmam Representative of the Ministry of International Co-operation Dr. Atwa Hossien Representative of the Ministry of State for Environmental Affairs Mr. Shrief Oteyfa Representative of the Ministry of Investment Acc. Nabil Ramzi Suleiman Deputy Chairman for Administrative & Financial Affairs Eng. Hamdy Mahrous Okashah Representative of the South Delta Electricity Distribution Company Acc. Akram Mahfooz Ghaly Representative of the Ministry of Finance Eng. Mahmoud Atia Mostafa Deputy Chairman for Projects Implementation & Operation Eng. Ahmed M. Mehina Representative of the Ministry of Electricity & Energy Major Amgad Sa’ad El-Wakel Representative of the Ministry of Defense and Military Production (Minister of Electricity & Renewable Energy) Chairman of the Board Board Members Eng. Shaaban Khalaf Ahmed Statistical Information The Vision - The Ministry of Electricity & Renewable Energy gives its priorities for supplying electrical energy to all Peak Load (MW) : 27000 consumer in all sectors in sustainable basis according to the international standards, which ensure providing consumers with high quality services on economic basis, taking into account the environmental and social aspects through three axis: - Total Installed Capacity (MW) : 30800 secure electrical energy supply through diversying resources and increasing generated electricty from RE resources Total Produced Energy (GWh) : 159017 saving fossil converntional fuel to secure energy for the coming generations elaborate and protect the enviroment and reduce global warming - From this standpoint, NREA is assessing renewable energy resources and planning the development of Fuel Consumption Rate : 212 (gm.o.e / kwh) CO2 reduction : 8740 (thousand ton) Human Resources Total of NREA Staff :1215 its investments within the overall framework of the State policy. Consequently allocating appropriate areas to generate electricity from wind & solar energy and preparing the technical, economic and environmental studies, preluding implementation of the projects and connecting them to the grid. The Strategy - In February 2008, the Supreme Council of Energy approved an ambitious plan to: - In July 2012, an Egyptian Solar Plan has been approved by the Cabinet which targeting to install about 3500 MW by 2027. 11 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 12 Polices - Renewable Energy Strategy will be implemented through two integral paths as follows :• • • Governmental Projects (about 33% from the total installed capacities). Projects by the Private Sector (about 67% from the total installed capacities). - To increase the private sector’s contribution in renewable energy projects through supportive policies has been adopted as follows :- Competitive Bids (Aug. 2009) Issuing tenders internationally requesting private sector to supply power from wind energy projects. Feed-in-tariff (Aug. 2009) will be applied taking into consideration the prices achieved from the 1 st competitive bid. (IPP) Third Party Access (June 2012) Investors are allowed to build & operate RE power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid. Net Metering (Jan. 2013) Egyptera Board approved to apply net metering system to encourage the implementation of PV Roof Top systems. Renewable Energy Fund The cabinet agreed on activating Renewable Quota System (Sept. 2013) A heavy industries energy consumption will be obliged to use a percentage of its electricity consumption from RE sources starting from 2015. Energy Fund to cover the gap between the selling price of the energy generated from renewable energy resources and its average production cost. 13 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 14 Incentives Wind Energy - Encouraging the participation of the private sector in renewable energy projects requires taking on several procedures including setting supportive policies (setting up targets and strategies, committing the government to implement it, the institutional framework, issuing regulations and legislation) and motivational technical and financial mechanisms :- Incentives for RE in Egypt - In December 2005 the Egyptian Wind Atlas was issued in cooperation with the Danish RISO Laboratories and the Egyptian Meteorological Authority (EMA) to indicate appropriate and promising areas to benefit from wind energy in generating electricity. - The Atlas redeemed the availability of promising areas endowed with high wind speeds in Gulf of Suez and on both sides of the Nile as well as areas in Sinai which suitable for establishing large projects to generate electricity from wind energy. Financial Technical Wind Farms • Grid Code • Grid Access • Priority of Dispatching and Energy Banking • The project company shall get license for power generation from Egyptian Electricity Regulatory Agency. • Exempting all renewable energy equipment and spare parts from the customs duties. A) Hurghada wind farm (5 MW) in: • Signing long term Power Purchase Agreement (PPA) ( 2025) years . • Central Bank of Egypt will guarantee all financial obligations of EETC under the PPA. • More than 7600 square kilometers of desert lands have been allocated for implementing future projects. - Hurghada wind farm has been operated since 1993, it includes wind turbines with different technologies (double and triple blades). The local manufacturing share of some components reached to about 40 . The capacity of wind turbines ranges between 100 - 300 KW. • All permits for land allocation are already obtained by NREA. • Environmental Impact Assessment (EIA) including Bird migration studies have been prepared by NREA • Signing land use agreement with the investor against - The total production of the plant reached about 5 Gwh in 2012/2013, saving about 1000 Tons of Oil equivalent and reducing emissions of about 2800 tons of CO2. payment equivalent to 2% of the annual energy generated from the project or its value. • Establishing Renewable Energy Fund 15 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 16 B) Zafarana Wind Farms (545 MW) : - The total installed capacities in Zafarana wind farm is 545 MW. - This wind farms were implemented on several stages since 2001, through Governmental cooperation protocols with Germany, Denmark, Spain and Japan. - The wind farms includes 700 turbines from different models (600 kw, 660 kw, 850 kw). Technical Data for Zafarana Wind Farms in 2012/2013 Electricity Generated (Million KWh) 1287 17 New & Renewable Energy Authority (NREA) Energy Sold (Million KWh) 1261 Losses % Average Wind Speed m/s Capacity Factor % Availability % 1.7 6.7 25.2 94.1 Annual Report 2012/2013 18 Technical Indication for NREA Wind Farms Since 2001 Technical Indication for NREA Wind Farms Since 2001 Evolution of the Installed Capacity (MW) Evolution of Fuel Saving (1000 T.O.E) Electricity Generated Development (Million KWh) Evolution of Emission Reduction (1000 Ton CO2) 19 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 20 Lands • • Egypt is endowed with abundant land resources with only about 7% of population occupied area. The rest of the lands are mostly desert to host renewable energy projects that would increase the share of renewable energy in the energy mix. Presidential decree was issued to allocate lands for NREA for implementing RE projects by itself or availing ports of these lands to the private sector establish RE projects with usufruct agreement. • About 1420 km2 on the West Coast of the Gulf of Suez in the region between Gabal El Zayt and Ras Gharib. • About 6418 km2 in East & West of the Nile in Beni Suef – Al Minya – Assiut Governorates. Environmental Impact Assessment Studies 1. The Environmental Impact Assessment Study for an area 300 km2 to establish wind farm projects with capacity about 1500 MW in Gulf of Suez :2 1228 km North Gulf of El Zayt 2 656 km in Gulf of El Zayt Area • In September 2013, Environmental & Social impact assessment study including bird migration study has been completed to about 300 km2 allocated to NREA in Suez Gulf, can host about 1500 MW. • The study covered Spring 2013 & Autumn 2012, which is a season of bird migration, where large numbers of migratory birds pass twice in Spring and Autumn. • Monitoring of bird migration through 8 sites, the focus was on the types particularly vulnerable to collision with the wind turbines (predatory birds, storks and swans) which migrate mainly to large hikes during the day. • The study included :- • About 15.3 km2 in Faries village and Kom-Ombo in Aswan to establish Solar Power Plants using Photovoltaic System. • The Red Sea governor decree was issued on 2/6/2013 to allocate about 250 thousand m2 in Marsa Alam as well as about 100 thousand m2 to establish a Solar Power Plant, and a Water Desalination Plant respectively. • The main results of the study : The study area is a typical desert area characterized by stretching plain, undulating sand dunes and mountainous areas in the North, and there is no specific feature requires preservation. Currently, NREA is coordinating with the Ministry of Defense and National Center for Planning State Land Uses to obtain the necessary approvals to allocate the proposed sites to implement the Egyptian Solar Plan in Kom Ombo, East Nile, West Nile, and Sfaga,. The project will have an environmental & social output, and during the construction phase of the wind farm there will be a need for large number of employment from the national market, representing about 30 – 40% of the labor required. • 21 New & Renewable Energy Authority (NREA) Collect basic data on migratory birds (especially those types flying during the day). Describe migration patterns in a numerical way. Identify the necessary measures to mitigate the potential negative effects on the birds. The installation of wind farms in this region, in the case of using the shutdown on Demand System during the passage of birds over the area to reduce the effects of birds collisions with the turbines. The operation of wind farms in this region will save fossil fuel sources, as well as reduction of Carbon dioxide emissions. Annual Report 2012/2013 22 2. Environmental and Economic Study for NREA’s West Nile Land:- In July 2010, the Japanese Agency for International Cooperation (JICA) contracted with a Japanese Consultant Office to prepare the feasibility study for the area about 4240 km2 at West the Nile through two phases :• The first phase : preparing the bird migration study and measurements of wind speeds data to select suitable site for implementing 200 MW wind farm. • The second phase : conducting the feasibility study for 200 MW wind farm. - The study indicated that : • The Average wind speeds in the region ranges between 7 – 8 m/s, according to the recorded reading of 8 measurements towers in the site. • Implementing of a wind farm plant of about 200 MW in cooperation with JICA it is planned to be operated in 2017/2018. Future Projects A) Governmental Projects : • In the context of satisfying the Contribution of NREA in the wind Energy Plan by implementing 2400 MW representing about 33% of the total installed capacities till 2020. • Currently, 7 projects are under implementation and preparation with total capacity 1340 MW through governmental agreements as follows :- 3. Environmental and Social impact Assessments for Implementing 100 MW Solar Thermal Power Plant (CSP) in Kom Ombo :• The study of environmental and social impact assessments for the installation of CSP power plant with capacity of 100 MW in Kom Ombo has been conducted in cooperation with African Development Bank (AFD). 23 New & Renewable Energy Authority (NREA) First : Project Under Implementation :200 MW Wind Farm Projects in Co-operation with KfW, European Investment Bank (EIB) and European Commission in Gulf of Zayt: • An Umbrella Agreement between the Egyptian Government, the German Government, the European Investment Bank and the European Commission was signed to finance the project with amount 340 Million Euro. • Currently, the project is under implementation through 4 Lots: Lot 1 : Supplying and installation of 100 wind turbines with capacity 2 MW each including the control & monitoring system. Lot 2 : Civil and electric works. Lot 3 : establishing the administrative and residential buildings. Lot 4 : implementing the substation of the project. • It is planned to be operated in June 2014. Annual Report 2012/2013 24 B) Private Sector Projects : Second : 1140 MW Projects in Preparation Phase : Project Capacity (MW) Start Operation Estimated Cost (Million Euro) Current Status - In cooperation with the Japanese Government, the Gabal El Zayt (2) 220 2016 308 short list has been selected and it consists of 4 bidders. - The technical and financial offers will be submitted in April 2014. - It is planned to sign the contract with the project contractor in the third quarter of 2014. - The project will be financed in cooperation with the Gabal El Zayt (3) 120 2016 168 Spanish Government. - Currently the tender document is under preparation to be issued in April 2014 in Spanish Market. - The project will be financed in cooperation with the European Partners. Gulf of Suez (1) 200 2016/2017 280 - The feasibility study of the project is under conducting, and it is planned to be finalized at Mid2014. - The project will be financed equally between NREA Gulf of Suez (2) 200 2017/2018 280 and the Masder Company (a company owned by UAE Government). - The feasibility study is under conducting through a grant from the Clean Technology Fund (CTF), it is planned to be finalized by the end of 2014. - The project will be financed in cooperation with the Gulf of Suez (3) 200 2017/2018 280 European Partners. - AFD agreed to finance the feasibility study, and appoints a Tender Agent to support in preparing an international tender for selecting the consultant. - It is planned to sign the contract with the consultant in Mid-2014. Firstly : Private sector will implement wind energy projects through competitive bidding with total capacity 750 MW as follows :250 MW Wind Farm (Private Sector) on BOO basis in the Gulf of Suez : • 10 developers were short listed in Dec., 2009. • Since November 2010 till June 2013, wind speed measurements has been campaigned in the site. • The shortlist developers will submit their offers by May 18th 2014. • It is planned to be operated in 2016. • 500 MW Wind Farm (Private Sector) on a BOO basis in the Gulf of Suez : • Egyptian Electricity Transmission Company and NREA are preparing to issue a tender of capacity about 500 MW within two phases (2 × 250 MW) to use BOO system. • It is planned to be operated in 2017/2018. Secondly : Third Party Access : the Developer will use the electricity produced from the project in feeding his own loads or sell it directly to his consumers: 120 MW Wind Farm in cooperation with Italgen 600 MW Wind Farm on Usufruct System : in Gulf of Suez : • Italgen company submitted offer to establish a wind farm to feed cement factories owned by Suez Cement Company. NREA signed a Memorandum of Understanding with the company after obtaining the approval, of the cabinet for this project. • Environmental study was finalized in April 2010 and approved by the Egyptian Environmental Affairs Agency. • In June 2012, the Land Usufruct Agreement was signed between NREA and the Company. • The project is under implementation and it is planned to be operated in 2016. • NREA announced for availing 6 pieces of land each one 15 km2 in Suez Gulf for establishing 100 MW wind farm project for each piece of land based on auction system, to build & operate wind power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid. • NREA received 7 offers they are under evaluation. • The land will be availed to the investor against at least 2% of the annual electricity generated or its value from the project. • It is planned to be operated in 2016/2017. - The project will be financed in cooperation with the West of Nile (1) 25 200 2017/2018 New & Renewable Energy Authority (NREA) 280 Japanese Government. - The project feasibility study is under conducting, and it is planned to be finalized by the end of 2014. Annual Report 2012/2013 26 Solar Energy - Egypt is one of the sunbelt countries that enjoys with high solar radiation. So Egypt is one of the largest potentials of solar energy applications. - The solar Atlas was issued in 1991, indicated that the average direct normal solar radiation ranges between 2000 – 3200 KWh/m2/year from North to South with very few cloudy days. - The sunshine 9 – 11 hr/day. duration ranges between Solar Thermal Water Heaters : - The total installed area in Egypt is about 750 thousand m2. - There are about 20 Egyptian companies working in the field of manufacturing, importing, and installation of solar water heaters. - Currently, there is a cooperation with the tourism sector to spread the utilization of Renewable Energy applications in tourist communities, including increase the use of solar heaters in Hotels and Tourist Villages. 27 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 28 Current Projects Disseminating Solar Water Heaters Project in Hotels located in Red Sea and South Sinai Governorates (EGYSOL): Activities of Solar Thermal Electricity Generation Kuraymat 140 MW Integrated Solar Combined Cycle Power Plant : - The project is implemented in co-operation between Egyptian Government, Italian Government and the United Nations Environment Program (UNEP). - The project aims to implement a mechanism that support financing the dissemination of solar water heaters in hotels & resorts in Red Sea and Sinai Governorates with total cost of 500,000 US Dollar. - The project aims to : Install of about 5000 m2 of water solar heating system. Save about 4000 tons of oil equivalent. Reduce of about 12000 Tons CO2 annually. Provide technical capacity building for staff in the field of water solar heating. - Currently, about 2350 m2 of solar water heater in 21 Hotels has been erected. 29 New & Renewable Energy Authority (NREA) - The project is one of 3 similar projects that are being implemented in Africa (Morocco, Algeria and Egypt), and mainly depend on integrating solar field with combined cycle. - The capacity of the project is 140 MW including solar share of 20 MW. - The total area of the integrated solar field is about 644 thousand square meters and the total solar collector is about 1920 solar collector containing 53760 mirrors. - The Total cost is about 340 Million US Dollar including 50 Million Dollar grant from the Global Environmental Facility (GEF). - The plant has been operated since July 2011. - In June 2013, the World Bank issued a report, including a comprehensive assessment of the project Implementation and included that : The project is considered as the first CSP project in the region, and it raise awareness of solar CSP technology in Egypt and globally. Lessons learned from project in the preparation of a program spreading the use of CSP program in the Middle East and North America. The Bank ensured that, the project objectives and parameters were consistent with the Egyptian government’s priorities, goals and objectives, which aims to improve public services and private sector, as well as with the political objectives of the Egyptian revolution in provision of job opportunities and economic development. Planned results of the project have been achieved with some default as a result of the financial problems that have emerged during the implementation of the project. The project design includes employees training at the site during the period of contract operation and maintenance for two year to the solar component to build technical capabilities in this field. Annual Report 2012/2013 30 2- Photovoltaic Solar Power Plants with capacity about 40 kw each : Photovoltaic Systems - Photovoltaic systems applications has been - Several projects has been implemented or under spread for lighting, water pumping, telecommunications, cooling and advertisements purposes on the commercial scale in Egypt. preparation by the Ministry of Electricity & Renewable Energy and NREA. 1- Electrifying Remote Villages by Photovoltaic System in Siwa, Matrouh Governorate : - In the context of encouraging the use of - The power plant consists of 96 solar panels - Electrifying Om Al Sager and Ein Zahra Villages in Siwa Oasis using photovoltaic System through grant from the Italian Government of about 400 thousands Euro. The project has been operated since December 2010, and it has included : Electrifying (100) houses and (40) Street Lamp Poles. Electrifying (1) school and (3) mosques. Electrifying (2) medical clinic units. 31 New & Renewable Energy Authority (NREA) photovoltaic systems in buildings, in Jan 2013 installed in metal structures on the roof of two Board of Director of the Egyptian Electricity buildings, voltage transformer, power meter and Utility & Consumer Protection Agency approved connectivity to the low voltage grid, electrifying to apply Net Metering system where the 10 lighting units with solar power with storage consumer can implement photovoltaic systems on capacity for 12 hours. the roof top build and sell the electricity generated to the grid through a separate meter. - This project is a pilot project and will be implemented in electricity companies and - In order to ensure the optimization of this policy and to stimulate the rest of governmental entities governmental buildings as a first step to raise to implement this system in their buildings, the public awareness and support audience of Minister of Electricity and Renewable Energy consumers to use photovoltaic systems in implements and operates two power plants with electricity generation. capacity about 40 kw in its roof top buildings each to feed a part of its electricity consumption, as well as electrifying 10 street lighting using photovoltaic systems in front of its premises. Annual Report 2012/2013 32 3- Electrifying the of Kourymat Solar Power Plant Fence by Photovoltaic system : The Egyptian Solar Plan - In the framework of fruitful co-operation - Erection of the project has been finalized in Feb. between China and Egypt, the Chinese Government has provided a Grant to electrify the fence of the Kurimat solar thermal power plant by 300 street lighting. 2014. 4- Electrifying 40 Houses by photovoltaic system in Cooperation with the Indian Government: - In March 2012, a cooperation protocol was signed between the Egyptian and Indian Governments in several areas, including cooperation between NREA and the Indian New and Renewable Energy Ministry for Electrifying number of houses using photovoltaic systems. - Ein Grist village has been selected in Matrouh Governorate includes 40 Houses with total capacity of 8.8 kw to be electrified by PV Systems. - Currently, the design of the project is under preparing in coordination with Indian Side. 33 New & Renewable Energy Authority (NREA) - In July 2012, the Egyptian Solar Plan has been approved by the Cabinet, which targeting to install about 3500 MW capacity by 2027 with private investment share of 67% including enhancement of relevant local industry. Annual Report 2012/2013 34 Future Projects 100 MW Solar Thermal Power Plant at Kom Ombo : - NREA’s future plan till 2017 includes : Implementing a solar thermal power plant with capacity 100 MW. 240 MW with governmental and private sector investments, including 2 photovoltaic power plants, each with a capacity of 20 MW by NREA and (10) projects each project with capacity about 20 MW by the private sector based on BOO system. Solar Plan Till 2017 100 MW Solar Thermal Power Plant Kom Ombo Photovoltaic System (240 MW) 200 MW (10 × 20 MW) BOO System - NREA plan (2012-2017) includes implementing solar - It was agreed with the International Funding Agencies to provide the funding requested to thermal power plant with capacity 100 MW with implement the project. storage about 4 hours at Kom Ombo. - The feasibility study of the project has been - The expected energy will be produced from the project conducted in October 2013. about 385 GW. the estimated cost of the Project about 628 Million Euro. 40 MW (2 × 20 MW) By NREA 35 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 36 PV Power Plant (240 MW) : A. 20 MW PV Power Plant in Hurghada in cooperation with JICA: C. Implementing of 10 Photovoltaic Power Plants, each with a capacity of 20 MW based on BOO System: - On 27/7/2013, it was announced to invite local and foreign investors with experience to offer their qualification in relevant solar power plant projects, to install photovoltaic power plants with a total capacity 200 MW divided by ten pieces, each with a capacity of 20 MW based on BOO system through the private sector. - The investor will design, finance, contract, own and operate the plant and sell electricity to the Egyptian Electricity Transmission Company for a period of 20 years within the electric power purchase agreement. - This project is one of the largest projects to generate - The feasibility study has been conducted at the end electricity from Photovoltaic System and will be of 2012. connected to the grid in cooperation with JICA. - It is planned to start operation of the project in 2016. B. 20 MW PV Power Plant in Kom Ombo in cooperation with French Development Agency (AFD) : - 35 offers were received and the shortlist has been selected including 15 Companies. - It is planned to be operated in 2017/2018. D. Electrifying 195 Remote Villages and Cities by using Photovoltaic System in Cooperation with the United Arab of Emirates (UAE) side : - The Ministry of Electricity and Energy represented by New & Renewable Energy Authority is implementing the project for remote villages and communities by using Photovoltaic System in collaboration with the UAE. Firstly : Electrifying of 70 Villages by the Photovoltaic System : - In May 2012, Grant Agreement was signed between - The feasibility study is under conducting and it is the Ministry of International Cooperation and the planned to be finalized by Mid-2014. AFD, to finance conducting of the feasibility study with an amount of 800 Thousand Euro. - It is planned to start the operation of the project in - A presidential decree No 371 was issued on 2017. 14/11/2012 to allocate land of about 15 KM2 at Kom Ombo in Aswan for NREA to be used in implementing of solar plants using Photovoltaic systems with usufruct agreement. 37 New & Renewable Energy Authority (NREA) - According to the receipt of data from the electricity distribution companies (Al-Canal, Al-Bahira, South Cairo, Central Egypt, Upper Egypt) located in the scope of these communities, cities, villages and communities has been divided into three group as follows:- Annual Report 2012/2013 38 Group I Villages and residential communities are deprived of electricity acess :(16) village deprived from electricity sources of it is planned to implement a standalone to implement a separate independent system for each home, and administrative units (mosque, health unit, school, etc.). Group II Villages and residential communities are dependent on the feeding diesel plant:(34) village currently depend on power supply from diesel generators for limited number of houses during the evening period, it is proposed to implement (photovoltaic system) to be integrated with the Diesel Power Plant and will determine the most suitable system (independent – central) for each village accordingly. (685) independent column for street lighting. Group III Cities and residential communities currently depend on central feeding diesel plant:(20) city and Residential Community Currently depending on diesel plants. It is proposed to electrify by central power plants using PV Systems in the day and by the diesel in the evening. - The UAE has launched a tender to implement Siwa plant with a total capacity 10 MW, and the contractor awarded to implement the project company in Jan. 2014. Secondly : Electrifying Communities affiliate to the Upper Egypt Electrcicity Distrbution by using the Photovoltaic System which are estimated about 195 Residential Community : - A tender was issued for the implementation and installation of isolated systems in the remote village (Aswan – Qena – Luxer – New Valley Matrouh – North Sinai – Sohag) and the contract has been signed in February 2014. 39 New & Renewable Energy Authority (NREA) Annual Report 2012/2013 40 “Master Plan of Renewable Energy in Egypt” - cooperation with the European Commission and the - The study included the development of plans and KfW “Master Plan of Renewable Energy in Egypt” perceptions of various contributions of renewable has been conducted with priority given to the wind energy in two phases :& solar energy as well as the CREMP is financed by the European Union Commission via the Neighborhood Investment Facility (NIF) under the lead of KfW. Phase I Conducting Master Plan for Wind and Solar Energy : - It is covered the period up to 2025 and focused on the participation of solar & wind energy technologies. The scope of the study includes implementation of the following five tasks : - The draft Master Plan has been completed and being reviewed by all concerned parties, the study ended to several conclusions, including : Identify the most tested areas and places of wind and solar energy power plant until 2050. Determine the loads required in each area and, the cost of connecting to the network, how to connect wind farms and solar network through the determinates of technical & economic cost and investment policies in the creation of infrastructure to transfer the electricity generated from these projects. Recommendations to develop an action plan for implementing the overall scheme include:• Set far – medium – short goals. • Restructure of the institutional framework. • The role and jurisdiction of the Supreme Council of Energy. • Subsidy reform / electricity tariff. • Create the entity responsible for energy planning. • Identify the role of New and Renewable Energy Authority (as a developer strategic planning). Develop the coordination between the legislation. Transparency. Develop a long-term government commitment :• Financing instruments / incentives. • Local manufacturing (increasing the proportion of the local component in renewable energy projects). • Capacity building (education & training). • Research and development. Phase II 41 Master Plan for the other types of renewable sources (biomass – biofuels – geothermal power - …) extends until 2050. New & Renewable Energy Authority (NREA) Annual Report 2012/2013 42 Activities Under Clean Development Mechanism (CDM) 3- 120 Wind Power Plant Project (Zafarana8): - Three mechanisms were identified to realize the - In the context of (CDM) which is mechanism - - The project has been registered under CDM in Protocol’s goals: (CDM) is designed to allow co-operation between September 2010. Annex 1 developed countries and developing - NREA contracted with the Danish Agency for 1) Joint Implementation Mechanism (JI). countries through implementing projects financially International Development to supply 334.000 supported by developed countries, in the developing Certificates in two installments. 2) Emissions Trade Mechanism (ET). countries. Such projects contribute to both - The verification processes for the first two sustainable development in developing countries and 3) Clean Development Mechanism (CDM) GHG emission reductions. Such emission reductions installments has been conducted, and the certificate will be sold to the developed countries hence it will has been transferred to the Danish side. help these countries in the fulfillment of their emission reductions obligations. NREA’s qualified 4 Wind Power Plants as CDM projects as follows: 1 120 MW Wind Power Plant Project (Zafarana7): - The project has been registered under CDM Projects in June 2007. - NREA contracted with the Japanese Carbon Fund and supplied about 700.000 Certificates in four installments. - The verification processes has been conducted. 2- 80 MW Wind Power Plant (Zafarana6): - The project has been registered under CDM in March 2010. - NREA contracted with the German Development Bank is Sep. 2006 to supply 550.000 Certificate (issued until 2012) in three installments. - The verification processes has been conducted for three installments of the certificates have been issued. - Currently, are being coordinated with the National Committee for the CDM to study the possibility of using the remaining certificates from the project. 43 New & Renewable Energy Authority (NREA) 4- 85 MW Wind Power Plant Project (Zafarana5): - The project has been registered under CDM in August 2011. - NREA contracted with the European Carbon Fund to supply 153.000 in one installment. - The verification processes for the installment has been conducted, the certificates of this phase have been issued and all the certificates are available due to the liquidation of the fund. - Due to the instability of the global carbon market at the present time after the expiration of Kyoto Protocol, NREA formed a committee in order to study the benefit from the remaining certificates as: Determine the best way to sell the available certificate. Identify the golden evolution procedures for the certificates resulting from NREA projects. prepare of Terms of Reference for selecting a consultant for the certificates rehabilitation for evolution and transfer the expertise to NREA staff. Annual Report 2012/2013 44 Testing and Research Center - The center for of RE, which was established in collaboration with European Union and Italy, to complete the studies and research necessary for the development of equipment, systems and testing the standard for performance, quality and environmental impact hence issue licensing certifcates. - The center includes a range of internal and external Laboratories as follows :- Testing Laboratories of Solar Thermal : • Outdoor Laboratory for testing of solar water heaters for low and medium temperature. • Outdoor Laboratory for testing solar water heaters at high temperature. Testing Laboratories of Solar Cells (Photovoltaic) : • Outdoor Laboratory for tests of solar cells (Photovoltaic). • Internal Laboratory for tests of solar cells (Photovoltaic). Assistant Laboratories. 45 • Research and tests of biomass. • Tests and measurements of a variety of public Laboratories (obsolescence, chemistry, physics, optical measurements and Electronics). New & Renewable Energy Authority (NREA) Annual Report 2012/2013 46 Energy Efficiency Laboratories for home Appliances Electric heater Lab. Lighting Lab. Air Condition Lab. Washing Machine Lab. Refrigerators Lab - The Laboratories of home appliances play an important role through the cooperation with the General Authority for Standards and Quality, the Public Authority for the Control of Exports & Imports, and the National Project to improve the energy efficiency & Reduce the Greenhouse Gas Emissions, so as to ensure the Egyptian standard specification commitment to paste the energy efficiency label on household electrical appliances before posed in the Egyptian Market to the consumers. - In 2012 /2013 more than 1323 local and imported products of home appliances were tested as follows :Refrigerators Lab. 676 local and imported production. Washing Machine Lab. 307 local and imported production. Lighting Lab. 47 16 energy saving bulb. Electric heater Lab. 93 local and imported production. Air Condition Lab. 231 local and imported production. New & Renewable Energy Authority (NREA) Annual Report 2012/2013 48 Regional and International Co-operation 1- Arab League : - In the framework of co-operation with the energy department of the Arab League through the Ministry of Electricity & Energy, NREA, head of technical Affairs Chaired the Committee of Experts on RE and EE in Arab countries which are working on : Monitoring the implementation of the Arab strategy for the development of RE applications and the draft model of national plans for RE and the signing adoption of the recommendations of the workshop guidance on RE. 3- Regional Center for Renewable Energy and Energy Efficiency (RCREEE): Arab vision for the exploitation of solar energy. System devices made for solar water heating “Shamas”. Arab forum for RE and EE which is held annually. 2- International Renewable Energy Agency (IRENA) : - Egypt is one of 75 countries that signed the Improve knowledge and promote the development of IRENA statute in the Founding Conference capacities and competencies necessary between countries. which was held in Bonn in January 2009. Raising the level of investments in research development - NREA acceded as an active member in IRENA and pilot projects in the field of RE. on 11/7/2012, to be the member No. 101. - Egypt is participating in the events and activities of the - IRENA aims to encourage disseminating of agency, the regular meetings of the council and the sustainable energy worldwide and becomes the general assembly of the Agency in addition to the work of main International agency in that field. the sub-Committees of the Agency. - Three experts has been nominated from NREA according IRENA’s activities involve: to the Agency request in the areas of preparation Atlas Providing support for RE practical Wind, Solar and RE Policies to help developing countries application and assisting countries in the in the development and use of RE, also the Authority development and to transfer and exchange of candidates was chosen as (policies expert) by IRENA to experiences. visit Mongolia 2 -6 September 2013 to help in the development of RE and to achieve their goals through the Analysis and monitoring the current practices transfer of expertise for activities of RE as well as the in the field to determine the factors of success preparation of the report includes the current situation and failure without imposing duties on the and the most important suggestion. policies of the member states, and to provide policy advice and assistance in this regard. 49 New & Renewable Energy Authority (NREA) - Egypt hosts the Regional Center for RE & EE to Disseminate successful practices of renewable energy serve 13 Arab Countries including Egypt, Morocco, polices and energy efficiency and implementation Algeria, Tunisia, Libya, Syria, Lebanon, Jordan, concepts in the region countries. Palestine, Yemen, Iraq, Sudan, Bahrain. Increase gains of countries region through - Germany, Denmark and European Union as well as technological cooperation with the European Union the Egypt, an government contribute with 4 Million and technology transfer in field. Euro in the establishment of the center. Raise research and development of investments and Objectives of the Center are:pilot projects in the field of renewable energy. Extending cooperation in the field of renewable - NREA participate in the (RCREEE) activities energy and energy efficiency among the countries in through the provision of experts, apprentices in the region, and between it and the European Union. workshops, conferences and training programs organized by the Center. 4- Egyptian German High Level Joint Committee for Renewable Energy & Energy Efficiency and Environmental Protection (JCEE) : - In the framework of co-operation with the German Evaluating the bids for the implementation of the Joint Committee in the field of technical assistance environmental study and for Com Ombo 100 MW and capacity building through affording an (CSP) project. International Consultant to NREA to put the legal Preparation of brochure to encourage investment framework to fund new capacity building and raising wind energy projects. the efficiency of Authority workers in the field :- As being of co-operation in the areas as follows : Organizing training programs for the Authority Technical support for planning and design of wind staff in the fields of power plants systems using farms. photovoltaic cells associated with the networks. Network integration of RE. Preparation of put up RE projects documents. Development of the institutional capacity for the Authority. Technical co-operation for the preparation of a draft partnership agreement with Masdar for a wind farm project of 200 MW at Gulf of Suez. Annual Report 2012/2013 50 5- Mediterranean Solar Plan (MSP) : 3- Finance a feasibility study for 50 MW solar - Being implemented within the framework of the thermal power plant in Kom Ombo (Kom Ombo Mediterranean Union Cooperation agreement CSP2). between several Arab and European Countries along the Mediterranean Sea, where is plan aims to develop a clear strategy for electricity generating - Initial approval to contribute in funding the projects from renewable energy sources and implementation of the project has been agreed , and transferring it to countries through networks linking coordination with the secretariat is underway in this all parties, and to improve energy efficiency and regard. spreading their own technologies and developing of - Comprehensive Master Plan for the Mediterranean capacity buildings in the Southern Mediterranean Solar plan is currently being developed, Also NREA Countries. participated in the teamwork which work in drafting - Ministry of Electricity submitted 3 projects the plan, the Master Plan will be a short political proposals to the secretariat of the Mediterranean reference paper and not a new technical study, and Union to be implemented through the plan, as will be prepared depending on mutual understanding follows :between inter-state Members which face the same 1- Contribution in the financing of power plant challenges. project with capacity about 20 MW in Kom - NREA participate in the preparation of Master Ombo (Kom Ombo PV1). Plan, also participated in the meetings related to the 2- Financing a feasibility study for 200 MW wind implementation of the plan in order to contribute to power plant in West Nile (West Nile Wind the success of its implementation. Farm II). 6- DII : - On 30/1/2013 Memorandum of Understanding was signed between NREA & DII. - Memorandum of Understanding includes the cooperation in the following areas : An analysis of the sources of solar and wind energy, including geographical information. Transfer of energy produced from RE projects. The expected performance for the technologies for RE generation. 51 New & Renewable Energy Authority (NREA) Evaluate the energy policies with respect to the plans of RE Support for current and future policies for the energy sector in Egypt. The legal framework and the incentives for the private sector investment in RE. Long term opportunities for the export of clean electricity from Egypt to EU Countries. Local support mechanism for RE Projects in Egypt. The current rates for power generation in Egypt and energy mix scenarios. Annual Report 2012/2013 52 Cooperation with the European Union in the Field of Research project 1- “MATS” Project in cooperation with Scientific Research of Technology Academy and the Italian ENEA in the field of solar technology concentrate : - 11 institutions and companies from (Egypt – Italy – Germany – France) participate in this project. - The project aims to create a complete model for CSP technology, and verification of the results of the experimental operation of multipurpose unit which will be installed in Burg Al Arab city in Alexandria affiliated to Scientific Research and Technology Academy. 3- MED Desire Project :- 9 utilities participate in the implementation of the project from (Italy – Spain, Tunisia, Lebanon and Egypt) to be implemented within the mechanism of the partnership between the countries of the European Neighborhood to cooperate cross border (ENPI CBCMED) which aims to :- Raise awareness in the field solar energy and energy efficiency. Promotion of new financing mechanisms for the advancement of solar energy technologies and energy efficiency. - Three years project duration ended in 30/12/2015 Capacity Building - It will be used as a source of energy electricity production with about 1 MW and about 250 m3/day of water desalination unit water, as well as heating & cooling of building surrounding the project, and enables the use of the storage thermal system proposed to save energy even in cases of non-availability of sunlight as a result of clouds in specific periods often sunset, and these features enable electric power production on demand as well as benefit from the sun’s heat to feed additional load as water desalination unit. - Project duration period is 42 months and the Italian Agency for RE plays the role of general coordinator. 2- "STS-MED Small scale thermal solar district units for Mediterranean communities" - 13 utilities participate in the implementation of the project from each of (Italy – Cyprus – Jordan – Egypt – Greece – France) and the organizations from Egypt (NREA, Academy of Scientific Research and Technology, Swedy Electric Company). - The project aims to prove the effectiveness of the small concentrated solar system such as (production of electricity, heating and cooling water desalination) and to encourage their adoption in the countries of Mediterranean basin with a focus on off-grid communities in rural and coastal areas, that creates new opportunities for the commercial and industrial sector taken into account the improvement of technical skills. 53 New & Renewable Energy Authority (NREA) - NREA implemented various training programs for - The total number of trainees in training programs and workshops organized by NREA reached 3100 about 430 trainees during the year 2012/2013 as trainees since 2001. follows : Training courses for 352 trainees from Iraq, - In addition NREA has organized and participated in local conferences, workshops and training members of Regional Center of Renewable Energy programs domestic and international. and Energy efficiency (RCREEE) – Nile Basin Countries and Africa Countries. Annual Report 2012/2013 54 Participation in International & Local Events - NREA’ staff participate in the most important international and local events related to renewable energy activities such as: The regular meetings and events of the Regional Center for RE and EE (RCREEE), The regular meetings of the Mediterranean Solar Plan within the framework of the Union for Mediterranean initiative, Conferences and events organized by the Arab League States (LAS), Conferences and workshops held in Egypt. The fifth meeting of the International Agency for RE (IRENA) Abu Dhabi Summit for Future Energy 2013 Workshop on Energy Efficiency in Algeria Beirut Energy Forum 55 New & Renewable Energy Authority (NREA) Related Links Annual Report 2012/2013 56 Ministry of Electricity & Renewable Energy New & Renewable Energy Authority ( NREA) Dr.Ibrahim Abo Elnga St. Ex. of Abbas El-Akkad St. - Nasr City - Cairo Box: 4544 Msaken Dobat Elsaf - El hay sades - Nasr City - Cairo Tel: (202) 22713176 - (202) 22725891,2,3 Fax: (202) 22717173 E-mail: nre@idsc.net.eg Website: www.nrea.gov.eg