In Egypt, the Egyptian Solar Energy Development Company, a subsidiary formed by Egyptian cable manufacturer El Sewedy Electric, announced that it had entered into an agreement to develop a 50MW solar power plant in Aswan, south of Cairo.
Last week, the cable manufacturer said that it will invest an estimated $75 million (ZAR929 million) in the newly formed subsidiary, which will be responsible for developing, funding, owning and running the solar power plant, Reuters reported.
The cable company said: “El Sewedy will sell the energy produced from the plant to the Egyptian Company for Transporting Energy at a price of $0.1434 for kilowatt per hour.”
Investing in renewables
German multinational conglomerate company Siemens has been an active investor in the Egyptian energy market, signing a $9 billion deal (ZAR112 billion) earlier this month, to install high efficiency natural gas-fired power plants and wind power plants to boost Egypt’s electricity generation by 50%.
Each gas-fired plant will have the capacity to generate 4.8GW and will be powered by eight Siemens H-Class gas turbines.
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 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.
Attracting foreign investment
In earlier reports, ESI Africa reported on the Egyptian Minister of Investment Ashraf Salman who said that Egypt can expect an estimated $45 billion (ZAR559 billion) investment in the renewable energy sector within the next few years.
Speaking at an Energy and Future of Investment conference, Salman said that Egypt is allowing the private sector into the production and distribution markets.
The move has encouraged investment needed to meet the North African country’s electricity requirements, especially in the renewable sector.