Advertisement
|15 August, 2018

Egypt approves ACWA Power offer for wind power project

ACWA Power will implement the station on the Build, Operate, Ownership (BOO) scheme.

Image for illustrative purpose. An employee looks at lifting of the rotor hub on the tower part of an E-70 wind turbine during its installation at a wind farm in Meneslies, Picardie region, July 23, 2014. REUTERS/Benoit Tessier

Image for illustrative purpose. An employee looks at lifting of the rotor hub on the tower part of an E-70 wind turbine during its installation at a wind farm in Meneslies, Picardie region, July 23, 2014. REUTERS/Benoit Tessier

REUTERS/Benoit Tessier

The economic committee of ministers approved the offer by the Saudi company ACWA Power to establish wind farms with capacity of 500 MW in the Gulf of Suez and investments up to $600m.

Government sources told Daily News Egypt that the cabinet will ratify the decision in its coming meeting.

ACWA Power will implement the station on the Build, Operate, Ownership (BOO) scheme. The price has been set at 3.12 cents per kWh. The company is cooperating with a number of international institutions to finance projects. The contracts are expected to be signed within two months.

ACWA Power is seeking approval from the government for the implementation of the wind farms, which are part of its investment plan to be implemented in Egypt, along with the solar power plants in Benban and Kom Ombo, as well as the combined cycle power plant in Daryout.

The sources said that the offer from ACWA Power is the lowest per kWh, noting that they also have expertise in this regard.

The company will begin the procedures for obtaining the land necessary for the construction of the stations after the approval of the cabinet. The New and Renewable Energy Authority (NREA) has been allocated 1,420 sqkm for the establishment of wind farms in the Gulf of Suez area.

In parallel, the negotiations between the government and the Elsewedy-Marubeni alliance are at a standoff. No steps have been taken yet, and the offer has not been decided upon, even after eight months of negotiations.

The company said in a previous statement that it had signed a memorandum of understanding with Japan’s Marubeni Corporation to develop a wind farm on the BOO scheme.

According to the company, the project is located on the Red Sea coast, north of the city of Hurghada, in the region of Jebel al-Zayt. The project includes the establishment of a wind farm in two phases, each with an output of 250 MW. The project’s studies will be completed within 18 months and should kick off over several phases starting in 2020.

© 2018 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.