Renewable Energy in Egypt

Mohammed Mostafa El-Khayat
New and Renewable Energy Authority
chairperson@nrea.gov.eg
www.nrea.gov.eg

Contents•

Renewable Energy Strategies in Egypt•

Renewable Energy Sector•

Renewable Energy Resources•

Renewable Energy in Egypt•

COVID-19 Impact on Renewable Energy Market•

Future of Renewable Energy Market•

Housekeeping Activities•

Key Massages

Renewable Energy Strategies inEgypt

Vision, Strategy, and Policies

VisionIncrease Share of renewable energy in the energy
sector.

Targets

Generate electricity from renewable energy;- 20% by the year 2022,- 42% by the year 2035.

Policiesa) Competitive Bidingb) Merchant Schemec) Feed-In Tariff, FiT

Renewable Energy Sector

Legal Framework
1) Constitution / Article 32
To get optimum benefits from renewable energy, promote its investments, andencourage R&D, in addition to local manufacturing.
2) Law No. 203 of Year the 2014
To Motivate Production of Electricity from Renewable Energy Sources.
3) Electricity Law No. 87, July 2015
It governs the electricity sector in Egypt.

4) Announcement of the Second Round of FiT5) Net Metering Circulars, of the Year 2017-2020.

6) Cabinet Decree No. 1947 of the Year 2014 on Feed-in Tariff -1st Round
It establishes the basis for Feed-in Tariff for energy produced from renewableenergy projects and encourage investment in renewable energy.
7) Prime Ministerial Decree No. (2532) of the Year 2016 on Feed-in Tariff-2nd Round
Regulations to Avail Land for renewable Energy Projects.

Legal Framework
7) Prime Ministerial Decree No. (37/4/15/14) of the Year 2015
Regulations to Avail Land for renewable Energy Projects.

8) Investment Law No. 8 of the Year 1997 (as amended)
On Investment Guarantees and Investments

9) Presidential Decree No. 326 of the Year 1997 (as amended)
It establishes the Electric Utility and Consumer Protection Regulatory Agency,
affiliate of the Ministry of Electricity and Renewable Energy, responsible of theissuance of permits and licenses for generation, transmission and distribution.

10) Law 4 for the Protection of the Environment (as amended)
The law formulates the general policies for protecting and promoting theenvironment.

11) Law No. 102 of the Year 1986 (as amended)
Establishes the New and Renewable Energy Authority, NREA. NREA has the primaryrole in promoting and developing renewable energy in Egypt.

12) Companies Law No. 159 of the Year 1981 (as amended)
It establishes the requirements for incorporation of an SPV and the general rules forits management.

Renewable Energy Resources

Resource Assessment

WindSources : Egypt Wind Atlas, Dec 2005 and Egypt Solar Atlas, Nov 2017SolarLocations for Renewable Energy

West Nile

Suez Gulf

East Nile
Kom Ombo

BenbanTotal Area  7600 km2

Renewable Energy in Egypt

Renewable Energy Projects in Egypt

Capacity has been increased with+62% within the last 5 years

Source: www.nrea.gov.eg

Hydropower

Total Power+2800 MW

Source: MOERE (2020)

Wind Energy in Numbers

540 MW

580 MW

Zafarana Wind
Complex

Gulf of El Zayt, GoZ,Wind Complex

1500 MW500 MW

In development phase3 x 500 MW

under construction(250 MW BOO + 250
MW EPC)

250 MW
BOO In operation sinceOct. 2019

Solar Energy in Numbers

1465 MW140 MW

Benban Solar
Complex

Kuraymat ISCC,CSP

500 MW250 MW

In development(BOO + EPC)

Under Construction(BOO + EPC)

26 MW
Kom Umbo PV

Renewable Energy Indicators
Sites for Renewable Energy Indicators

Source: Cabinet websiteCOVID-19 Impact onRenewable Energy Market

‫‪Global Demand on Energy in 2020 compared with 2019‬‬‫مرصد الطاقة – برنامج دراسات الطاقة – مركز األهرام للدراسات السياسية واالستراتيجية – العدد ‪ – 103‬مايو ‪Source: 2020‬‬

Commodities and COVID-19Oil Prices-33 US$/barrel

Natural Gas

Very low prices of oil and gas now, indicates high risk in future
Source: EIA and Henry Hub Gas Prices websites

Renewable Energy Cost 2010 - 2020

Source: IRENA Renwable Cost Database

Egypt Green Market during COVID-19
Renewable Energy
Total Investment: + 2.0 bil US$
Photovoltaic :- 750 MW- US$ 2.0 Cent/kWhflat rate 25 years
Wind :- 1950 MW- US$ 3.0 Cent/kWhflat rate 20 years

Installed Capacities≈ 6000 MW

Contracted Capacities+ 2700 MW

Egypt Green Market during COVID-19
Green Bonds

Target: US$ 500 million

Achieved: US$ 750 million

COVID-19 and Renewable Energy Market

Financing

Regulations

Insurance

Long-term plans

Guarantees

Market Stability

COVID19 Impact on New Projects and O&M Activities

Reduction of Manpower(Social Distancing)

Flights suspension

Shipping Challenges
Equipment and Spare partsFuture ofRenewable Energy Market

Renewable Energy and FutureSource: NREA Annual Report 2019 , www.nrea.gov.eg

Green HydrogenRenewable Energy and Future• 70 mio. From NG• 25 mio. From Coal

 95
mio. tonCoal

Demand2% of its global
consumption• More investment in R&D• Strategies• Targets

Current
Sources

6% of its global
consumption

Political
supportRenewable Energy;• Wind,• Solar,•…

Green Hydrogen

Potential
Sources

NGCommercial
support• Refining,• Transportation,• Steel,• Petrochemicals,• Electricity,• ….

Renewable Energy and Future
Green Hydrogen

Source: Internet websites

Electric VehiclesRenewable Energy and Future

New Electric Car Sales by Country between 2013 – 2018 (‘000s)
Source: FTI Consulting (Jan. 2020), “E-Mobility Strategy in Egypt”

Renewable Energy and Future

Source: El Borsa newspaper

Renewable Energy and Future

Source: El Borsa newspaper

Housekeeping Activities

Housekeeping Activities

Regulations

Enhancing Grid Performance

Infrastructure

Quality of Equipment

Key Massages

Key Messages
1) There is an opportunity to work during the coming period on bothprojects development and market readiness; i.e. regulations,electricity grid, projects’ infrastructure, and quality ofcomponents.
2) Private sector has the major role during the coming period.
3) There will be a competition between investments in health anddigitization sectors, from one side, and energy sector from theother side.
4) Housekeeping activities such as regulations, grid performance,and infrastructure, could have more focus during the comingperiod.

Thank You

chairperson@nrea.gov.eg
www.nrea.gov.eg