German engineering company Siemens announced plans last week to install 2GW of wind power capacity and construct a wind rotor blade manufacturing plant in northern Egypt.
In addition to the building of a 4.4GW combined cycle power plant in Beni Suef, Siemens signed two Memoranda of Understanding (MoUs) “proposing to build” 6.6GW of additional combined cycle power plants and ten substations, Renewable seeNews reported.
The total worth of the signed MoUs is estimated at $10.5billion (ZAR136 billion), according to Bloomberg.
CEO of Siemens Wind Power and Renewables Division Markus Tacke said: “Egypt has great potential for wind power generation, especially in the Gulf of Suez and the Nile Valley.”
According to Tacke the Egyptian energy sector is transitioning towards a diverse energy mix by adding the 2GW of new wind capacity, Renewable seeNews added.
Renewable energy in Egypt
By 2020, the Egyptian government plans to add 7.2GW of wind power generation capacity to the energy mix.
The government implemented feed-in-tariffs (FiTs) for renewable power sources in 2014 and shortlisted companies to construct wind farms in the country in early 2015.
This follows the signing of a $4.5 billion (ZAR62 billion) agreement between Egypt and Abu Dhabi-based Al-Nowais Investments Group and the Egyptian Electricity Holding Company on Sunday to construct Egypt’s first coal-fired power plant in the Suez region.
The Egyptian Ministry of Electricity and Renewable Energy signed a total of $21.2 billion (ZAR260 billion) in deals, partnering with international firms to improve Egypt’s energy sector at a conference held over the weekend.