In North Africa, German multinational conglomerate company Siemens, signed a $9 billion deal (ZAR112 billion) with Egypt to install high efficiency natural gas-fired power plants and wind power plants to boost Egypt’s electricity generation by 50%.
On Wednesday, Egyptian President Abdel Fattah El-Sisi and German Vice Chancellor Sigmar Gabriel attended the signing of the deal in Berlin, Germany.
The power plants
Each gas-fired plant will have the capacity to generate 4.8GW and will be powered by eight Siemens H-Class gas turbines.
According to the Berlin-based technology company, the power plants will come online in different phases. The first 4.4GW is expected to connect to the grid before Q3 2017 and the balance of 10GW will come online within 38 months after reaching financial close and once advance payments have been received.
Siemens claims that once these plants reach completion they will be the three largest power plants in the world.
In addition, Siemens will install 12 wind farms in the Gulf of Suez and West Nile areas, comprising of 600 wind turbines with an installed capacity of 2GW.
As part of its commitment to developing the sector in Egypt, Siemens will also be constructing a rotor blade manufacturing facility in the Ain Soukhna region, which will have the capacity to create jobs and offer training positions for up to 1,000 local people.
Siemens said that the manufacturing facility is expected to be operational in the second half of 2017.
Siemens said in a statement that these orders expand on memorandums of understanding announced in March 2015 at the Egypt Economic Development Conference.
President and CEO of Siemens AG, Joe Kaeser said: “With these unprecedented contracts, Siemens and its partners are supporting Egypt’s economic development by using highly efficient natural gas and renewable technologies to create an affordable, reliable and sustainable energy mix for the country’s future.”
Siemens has partnered with Egyptian manufacturing company Elsewedy Electric and Orascom Construction to deliver the three natural gas-fired power plants in Beni Suef, Burullus and New Capital.
The power projects are funded through a structured financial package for Siemens’ role in the contracts, including financial support from the Export Credit Agency in Germany and Denmark.