UAE companies sign renewable energy deals in Egypt

Reuters

• UAE and Egypt sign energy MOUs
• Floating PV solar plant up to 5GW
• Egypt targets 30GW of renewables

Companies from the UAE signed a series of memoranda of understanding in Egypt last week to develop and support green energy projects in the country. The non-binding agreements are the latest in a string of planned Gulf energy investments in Egypt.

UAE renewable energy company Masdar signed an agreement to develop a floating photovoltaic solar plant on Lake Nasser in Upper Egypt. The plant will have a capacity of up to 3 gigawatts according to UAE state news service Wam, although an Egyptian cabinet statement said 5GW.

According to Wam, the project will be “the largest project of its kind globally”. Masdar made its first foray into floating solar plants last year, when it inaugurated the 145 megawatt Cirata plant in Indonesia in November.

Masdar signed a separate agreement with the Future of Egypt for Sustainable Development Authority, a state authority that mostly deals in agricultural land expansion, to establish a 2GW solar power plant in northern Naga Hammadi, Wam reported. An Egyptian cabinet press release quoted a higher capacity of 2.8GW.

Egypt is aiming to increase its renewable energy capacity by 30GW.

No information was announced regarding the size of these investments. Since 2014, private operators of renewable energy plants have been paid according to 25-year fixed feed-in-tariffs that are priced in US dollars and paid in Egyptian pounds.

Two additional MOUs were signed for energy storage. The Chinese company Weiheng signed a $12 million with an Emirati company called Global South Utilities and the Industrial Modernisation Centre, a branch of the Egyptian Industry Ministry, to build a 1GW energy storage plant. The latter two companies also signed a deal with Apex National Investment, an Emirati holding company, to explore an additional energy storage facility.

In addition Masdar, the Egyptian-Emirati consortium Infinity Power and Egyptian company Hassan Allam Utilities signed a principal agreement with the Egyptian Electricity Transmission Company to establish solar power plants with a capacity of 1.2GW and battery energy storage systems with a capacity of 720MWh.

According to an Asharq Business report in September, these deals will be conducted on a “build, own, operate” contract.

Earlier this month, Egypt introduced tariffs for stored solar power, which will be priced at $0.023 per kilowatt-hour for investors who generate and store energy. Where investors store solar power created by government-owned plants, the tariff will be $0.014 per kilowatt-hour.

• Masdar and Silk Road Fund to co-invest in renewables
• Egypt seeks long-term LNG deals as energy demand soars
• Masdar secures funding for Azerbaijan solar projects

Emirati logistics company AD Ports also signed with the General Authority for the Suez Canal Economic Zone to develop a 20 sq km joint UAE-Egypt industrial zone in East Port Said.

According to comments made by prime minister Moustafa Madbouly, the zone will feature four factories, two of which will produce parts for solar energy production.

Global South Utilities and the Industrial Modernisation Centre also signed an agreement to build two factories producing solar cells and solar panels. It was not clear from press statements if the factories will be located in the new industrial zone.

UAE state news also reported additional MOUs to explore the possibility of a 900MW solar power plant in the Dakhla Oasis and a 300MW solar plant in Benban, Aswan Governorate.