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Investment, Technology Transfer and Climate Change Case Study: Wind Power in Egypt. Peter Wooders, Senior Economist Climate Change, Energy and Trade Mohamed ElSobki, Yasser Sherif ( Environics , Egypt) 14 December 2009. Research Questions.
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Investment, Technology Transfer and Climate Change Case Study: Wind Power in Egypt Peter Wooders, Senior Economist Climate Change, Energy and Trade Mohamed ElSobki, Yasser Sherif (Environics, Egypt) 14 December 2009
Research Questions • Egypt has all the necessary conditions for wind power • Excellent wind resource • Land with very low alternative value • Rapidly increasing electricity demand • Sites close enough to centres of population for grid expansion to not cost too much • Lots of donor interest and support • Current share of electricity generation: 0.7% • Why? What could be done differently?
Zafarana (Gulf of Suez, 85 MW, Denmark aid) http://www.folkecenter.net/gb/news/world/zafarana/
Development of Wind: Donor Led, now with CDM • Firm plans for a further 280 MW at Zafarana
Egypt’s wind plans (Supreme Council of Energy, April 2007 ) • From 2014 will all be private sector investment
Main Barrier: Price of Natural Gas to Generators Price to Egyptian power generators
New Electricity Law (before Parliament 2010) • Articles 45-49 of Chapter 4, Section 1 • NREA (National Renewable Energy Agency) or EETC (Transmission Company) can issue competitive tenders for construction • Electricity then sold to EETC • May 2009 pre-qualification for 250 MW BOO (Suez) • Private developers will get 15 year PPAs • EETC responsible for grid connection • Special fund for purchasing renewable electricity • Avoided gas/oil, donations, return on investments
5 Necessary Conditions for the Large-Scale Implementation of Wind in Egypt • A clear statement of why Egypt wishes to support wind power • A clear statement of the strategy Egypt will follow to build up its wind capacity • Setting the tariff that wind power should receive, and how this may change over time • A plan identifying how investments in grid connections and strengthening will be realized • Identification of the role NREA and other state organizations will play, and how this can encourage private sector participation