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|22 October, 2018

Egypt's EETC negotiated with Siemens to establish transformer station in Ras Ghareb

A deal is expected to be concluded within weeks, according to the sources

Image used for illustrative purpose. Man enters office building of Siemens AG in Berlin.

Image used for illustrative purpose. Man enters office building of Siemens AG in Berlin.

REUTERS/Tobias Schwarz

The Egyptian Electricity Transmission Company (EETC) has negotiated with the German Siemens Company to establish a 220 kV transformer station in Ras Ghareb.

Sources in the company said that the station will be used to transmit energy produced from Siemens’s 180 MW wind farm in Ras Ghareb, which is part of the wind farm’s first phase, signed with Siemens to produce 2,000 MW.

Negotiations are continuing with the Siemens Gamesa Renewable Energy on the tariff of the sale of energy noted the sources. A deal is expected to be concluded within weeks, according to the sources.

The project will be implemented under the build, own, operate (BOO) scheme, and will be financed through a number of German banks which have contributed to the financing of similar projects in Egypt during the last period, indicated the sources.

Siemens and Gamesa signed an agreement in 2016 to merge Siemens’ wind energy business, including services, with Gamesa, to create the Siemens Gamesa Renewable Energy. The company’s total energy produced from wind farms in Egypt amounted to 1,000 MW.

Egypt plans to generate 20% of its energy from renewable resources by 2022. Its total production of electricity now stands at 44,000 MW, including 2,400 MW from hydroelectric power, equivalent to about 5.5%, about 1,000 from wind farms, and 170 MW from solar plants, accounting for 2.6%.

According to the sources, the Egyptian Electricity Holding Company will introduce the projects under the BOO scheme. The investor will implement and finance, and the EETC will purchase the energy produced from the project.

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

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