Latest news with #EETC
Daily News Egypt
28-05-2025
- Business
- Daily News Egypt
Egypt approves $388m in private renewable energy projects for direct industrial supply
Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, has awarded qualification certificates to four companies selected to operate under the country's newly adopted private-to-private (P2P) power agreement model. The initiative allows private energy producers to generate and sell electricity directly to industrial consumers, marking a transformative step in Egypt's energy liberalization strategy and commitment to sustainable development. The approved projects represent a combined capacity of 400 megawatts and total investments of $388m. Each company will build its own renewable energy power plant and supply electricity directly to industrial clients, while paying a transmission fee to the Egyptian Electricity Transmission Company (EETC). These agreements are structured with no financial burden on the state and do not require sovereign guarantees. Among the newly qualified projects, Neptune for Electricity Production and Sales will supply solar power to the Suez Steel Plant. AMEA Power will provide electricity from its solar facility to the Suez Canal Container Terminal and Bivar Group for Chemicals. TAQA PV is set to supply Ezz Steel through a hybrid solar and wind power station, while ENARA for Renewable Energy Services will generate electricity from a hybrid facility for both the Helwan Fertilizers plant and the Alamein Silicon Products Complex. Minister Esmat stated that the initiative is being implemented in line with Egypt's Electricity Law, which is designed to open the market to competition, enhance efficiency, and attract private investment. He emphasized that liberalizing the electricity sector is a key strategic step in building a dynamic, competitive energy market that reduces costs, improves service quality, and strengthens Egypt's role as a regional energy hub. The Minister highlighted that the P2P framework enables industrial consumers to secure reliable, renewable electricity while contributing to their climate goals. These projects will also allow companies to certify their clean energy usage and reduce emissions, facilitating access to green export markets. Esmat noted that the Egyptian Electric Utility and Consumer Protection Regulatory Agency had completed its review of qualification submissions from seven companies, each proposing 100-megawatt renewable energy projects. The evaluation process was conducted in collaboration with a global consulting firm and the European Bank for Reconstruction and Development (EBRD), which helped develop the regulatory guidelines and legal framework for the P2P agreements. He reaffirmed the Ministry's commitment to building a transparent and investor-friendly environment that enables both producers and consumers to actively participate in Egypt's energy transition. These efforts are integral to supporting the national green economy agenda, expanding renewable energy capacity, and modernizing the country's power infrastructure.
Egypt Today
07-05-2025
- Business
- Egypt Today
Scatec Initiates $590 Million Solar Project in Egypt with Energy Storage
CAIRO - 7 May 2025: Scatec has officially launched the construction of its $590 million, 1.1 GW Obelisk solar project in Nagaa Hammadi, Egypt, which will also include 200 MWh of battery storage. The project, which is planned in two phases, is expected to be fully operational by the second half of 2026. The first phase will introduce 561 MW of solar capacity and 200 MWh of battery storage by mid-2026, while the second phase will add another 564 MW of solar power later that year. The Obelisk project will be connected to Egypt's national grid through 220 kV transmission lines, with a construction contract signed last month between the Egyptian Electricity Transmission Company (EETC) and a consortium that includes Kharafi National and Power Ring. In December 2024, the project was granted a golden license, a significant step in its development. To fund the initiative, Scatec has secured $120 million in equity bridge loans, with the project's equity injections deferred until the completion of construction. The Arab Energy Fund will contribute $90 million, and the European Bank for Reconstruction and Development (EBRD) will add $30 million. Additionally, Scatec has entered into a mandate for long-term, non-recourse debt, covering 80 percent of the project's total capital expenditure, sourced from a group of development finance institutions. Scatec has also secured a Power Purchase Agreement (PPA) with the EETC, a 25-year USD-denominated contract backed by a sovereign guarantee, ensuring the project's financial viability for decades to come.
Zawya
06-05-2025
- Business
- Zawya
Scatec starts construction of large-scale hybrid solar and battery project in Egypt
Norway's Scatec has commenced construction of its 1.1 gigawatt (GW) Obelisk solar and 100 megawatts (MW)/200 megawatt-hours (MWh) battery storage project in Egypt, marking the Arab country's first large-scale hybrid solar and battery energy storage development. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee, the company said in a press statement. The statement said the first phase of 561 MW solar + 100 MW/200 MWh battery storage is targeted to reach commercial operational date (COD) in the first half of 2026 and the second phase of 564 MW solar in the second half of 2026. Scatec has also signed equity bridge loans (EBL) of $120 million for the project, postponing the project equity injections to the end of the construction period. A $90 million EBL will be provided by The Arab Energy Fund with maturity in the second quarter 2028 and another $30 million EBL by the European Bank for Reconstruction and Development (EBRD) with maturity in the first quarter 2027. The company has further signed a mandate letter with a consortium of development finance institutions for the long-term non-recourse project debt at attractive terms, with financial close expected in the next few months. It is also in advanced discussions with potential equity partners, expected to conclude in the same timeframe. 'We are proud to break ground on Egypt's first hybrid solar and battery project, building on our proven track record with similar developments. Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec's position as a leading renewable energy producer in the country,' said Scatec CEO Terje Pilskog. Total capex for the project is approximately $590 million to be partly financed by a targeted 80 percent non-recourse long-term project debt. Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services for the project. Scatec's EPC scope is approximately 70 percent of total capex, reduced from previous communication due to optimisation of the EPC structure but with unchanged gross profit to Scatec. (Writing by Deva Palanisamy; Editing by Anoop Menon) ( Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.
CairoScene
21-03-2025
- Business
- CairoScene
Egypt Targets 42% Renewable Energy Share With Major Investments
Egypt is expanding solar, wind and hydrogen projects to maximise energy resources and strengthen its role in the global market. Mar 21, 2025 Egypt has finalised its strategy to increase the share of renewable energy to 42% by 2030, as announced by Minister of Petroleum and Mineral Wealth, Engineer Karim Badawy, during the Berlin Energy Transition Dialogue 2025. The strategy focuses on developing solar and wind energy projects in the Gulf of Suez, including a 500 MW wind power plant built in partnership between the Egyptian Electricity Transmission Company (EETC) and Siemens Gamesa. In addition to expanding wind and solar power, Egypt is aiming to position itself as a key player in the global hydrogen market, with plans to attract investments and launch hydrogen generation and production projects. The Egyptian government, in collaboration with the Ministry of Electricity and Renewable Energy, is developing a strategy to optimise energy resources and reinforce the country's transition to clean energy.
Zawya
20-03-2025
- Business
- Zawya
Egypt, Siemens Gamesa sign agreement for 500 MW wind farm in Gulf of Suez
Egyptian Prime Minister Mostafa Madbouly witnessed on Wednesday the signing of an agreement between the Egyptian Electricity Transmission Company (EETC) and Siemens Gamesa Renewable Energy for the construction of a 500 MW wind power plant in the Gulf of Suez. The ceremony was also attended by Minister of Electricity and Renewable Energy Mahmoud Essmat. The agreement was signed by EETC Chairperson Mona Rizk and Siemens Gamesa Egypt CEO Ayman Saad. This collaboration aligns with Egypt's energy strategy, reinforcing the Ministry of Electricity and Renewable Energy's commitment to expanding the role of renewables in the national energy mix. It also strengthens public-private partnerships, encouraging greater private sector involvement in the development of solar and wind energy projects. Under the agreement, Siemens Gamesa will be responsible for the construction, financing, and operation of the wind power plant. The project is set to significantly increase the share of renewable energy in Egypt's electricity supply, supporting the country's ambitious clean energy targets. Egypt aims to generate 42% of its electricity from renewable sources by 2030 and 65% by 2040. This initiative will help reduce reliance on fossil fuels, cut carbon emissions, and promote sustainable energy solutions. Minister Mahmoud Essmat emphasized that the project is a key component of the government's strategy to enhance the renewable energy sector, maximize the use of natural resources, and mitigate environmental impact. He highlighted Siemens Gamesa's long-standing partnership with Egypt in advancing renewable energy projects. 'The government firmly believes that renewable energy is essential for sustainable development, environmental protection, and ensuring a better future for future generations,' Essmat stated. He noted that Egypt is home to some of the largest renewable energy projects in the Middle East, all developed in close collaboration with the private sector. Ayman Saad, CEO of Siemens Gamesa Egypt, expressed enthusiasm about the partnership, stating: 'Our long and successful history in Egypt has contributed to generating 1.5 GW of electricity from clean energy sources. We are excited about this agreement and look forward to further expanding our contributions to Egypt's renewable energy landscape.' This agreement marks another milestone in Egypt's transition to a more sustainable energy future, reinforcing its leadership in renewable energy within the region.
