30 November 2012 – The Daily News of Egypt that TAQA power, a branch of the Citadel Capital owned TAQA Arabia (formerly Global Energy), has announced the start of the commercial operations of its independent power plant (IPP).
The Alexandriabased power plant is the first in the Egyptian private sector to provide electricity; the energy market has historically state controlled.The company was awarded a Build Own Operate (BOO) contract to provide the energy needs of Egyptian polystyrene company, E-Styrenics, a subsidiary of the Egyptian Petrochemical Holding company, in July 2011. It is the first to acquire a license to generate and produce electricity from the Egyptian Electric Utility Regulatory Agency, and the Consumer Protection Agency.
The plant, which has 11 MW capacity, will be powered by natural gas. E-Styrenics is building Egypt’s first polystyrene production line with a US$400 million investment and a capacity of 200,000 tonnes/year in the first phase of operations, according to Arab Finance website.
“We are pleased to witness this expansion in TAQA Power’s scope of operations. These types of projects offer new solutions that directly deal with some of Egypt’s most pressing problems; such as the shortage of electricity. This landmark project, which will ensure an uninterrupted power supply to one of the petrochemicals sector’s most important new factories, is an excellent example of how the private sector can make a valuable contribution to issues of national importance,” CEO of TAQA Arabia, Khaled Abu Bakr, says.
Egypt is currently suffering a shortage in energy supply; the excess in demand causes rolling power cuts especially during the summer season.