The Ministry of Electricity and Energy announced that it would begin accepting offers for the construction of a 250 megawatt windfarm next week, to administered as part of a Build, Operate, Own (BOO) scheme.
Electricity and Energy Minister Ahmed Imam said that the country’s Central Bank recently released a sovereign guarantee stating that the plan would cover all necessary costs for the farm’s construction, including the cost of operating for six months, expected to total $630m.
In a press conference held Friday morning, Imam stated that so far 10 companies have indicated they are preparing to submit offers, and that seven have already conducted wind speed measurements and environmental reports on the proposed site over the last two years.
Imam said that the Egyptian Electricity Holding Company (EEHC) would be required to purchase energy produced at the farm for a period of 25 years, reselling it to consumers at prices determined by Egypt’s cabinet.
He added that Egypt’s private sector would also be allowed to implement their own renewable energy projects, to be used either to provide for their own energy needs or for resale to consumers, adding that any companies that did so would have access to the country’s electricity grid in order to distribute transport such energy. This will be done to help companies avoid being forced to transfer the cost of energy transportation to consumers.
Saleh confirmed that so far six plots of land around the country had been set aside for establishing an additional 600 megawatt windfarm.