TCK Solar won the tender to establish a solar power plant in Kom Ombo to produce 26 MW.
Head of the New and Renewable Energy Authority (NREA) Mohamed El-Khayat said that the project is funded by the French Development Agency, adding that the preliminary contract was signed, while the final agreements will be signed by next week.
He told Daily News Egypt that TCK Solar will sell the energy at 3.3 cents per kW and has pledged to operate and conduct maintenance for 10 years.
Moreover, he said the NREA is negotiating in the implementation of solar energy power plants with a total output of 170 MW, including 20 MW in Hurghada that will fire in 2020, as well as 50 MW in Zaafarana that will also start in 2020.
Furthermore, the NREA is negotiating on a 100 MW solar plant in Zaafaranta and Kom Omb. El-Khayat said that the NREA wants to open the potential for the private sector to implement solar plants and wind farms to boost renewable energy output to 20% of total energy by 2022.
He add that 32 new solar power plants will be completed under the feed-in tariff system in Benban, Aswan by the first half (H1) of 2019.
During the solar energy conference organised by the NREA, Al-Khayyat pointed out that Egypt’s new economic development projects, increasing demand for energy, and the rise in oil prices globally are the most important factors driving the shift to new and renewable energy, mainly solar power.
He added that the energy sector has faced many difficulties and challenges in the previous years, prompting the energy sector to implement its urgent plan to eliminate power outages. Indeed, Egypt succeeded in increasing its power capacities generated from different sources.
The government also adopted a strategy that relies on renewable energy sources, especially Benban projects.
Al-Khayyat noted that Egypt aims to launch a solar cell industry in the country, adding that the Ministry of Military Production has adopted this initiative and started negotiations with China to implement the project. He called for issuing new legislation to promote the use of solar energy in irrigation in areas away from the electricity grid.
He explained that the NREA still follows the system of a feed-in tariff in Benban, Aswan, where it is currently implementing infrastructure and roads. Several investors have already started the construction work to implement these plants.