Contents...Contents: Previous Co-operation with the Japanese Companies Recent available Co-operation...

Contents:

Previous Co-operation with the Japanese Companies

Recent available Co-operation Opportunities in energy

Sector Power Projects.

1

3

2

Introduction & Egyptian Power sector key parameters.

4

Recent Energy Challenges for the Egyptian Power sector.

5

Initiatives of the Egyptian Power sector to meet energy

challenges

1- Introduction &

Egyptian Power sector

key parameters

*Based on (2012/2013) EEHC report

The electricity and energy sectors plays a vital role in

the economical growth to secure adequate electricity

supplies at minimum cost to all consumers with the

international standards. During the last decade, a

rapid increase of electricity demand occurred, the

electricity sector has grown rapidly trying to meet

this increase.

Introduction & Egyptian Power sector

key parameters.

% MW Type

33 11830.5 Combined Cycle

45 13843.5 Steam Cycle

11 3504 Gas turbine

9 2842.5 Hydro

2 547 Renewables

100 32708 Total

Installed Capacity (MW)

Introduction & Egyptian Power sector

key parameters.

Yearly Peak Load

Development (MW)

Peak Load Curve

2011/2012-2012/2013

Development of Gross

Energy Generated (GWh)

Energy Generated and

Purchased (GWh)

Energy Sold by Purpose (Gwh)

Fuel Consumption

Development (Ktoe) Fuel Consumption Rate

(gm/kWh)

International Electrical Interconnection

Recent Challenges for

the Egyptian Power

sector

Recent Challenges for the Egyptian Power sector

From the year 2012, The electricity sector has faced

the following challenges:

1) High increase in the electrical loads in an unmatched

way, where the maximum load growth rate in 2012 rate

of 10.3% compared to the average past growth rate,

which ranged from 4.3% to 8%.

2) Significant shortage in the natural gas supplies by the

year 2012.

Recent Challenges for the Egyptian Power sector

3) Necessity of Restructuring electricity tariff as the selling

price was less than 50% of the production cost.

4) Significant shortage in the natural gas supplies by the

year 2012.

5) Lack of funds needed for new power projects.

6) The low efficiency in some power plants due to:

a- Ongoing initiative for Existing assets & power sector regulations.

b- Private Sector Partnership.

c- Changing the energy generation mix.

The Egyptian Electricity sector seeks to face the previous

stated challenges through the following:

Initiatives

a- Ongoing initiative for

Existing assets & power

sector regulations.

Initiatives

Initiatives

Ongoing initiative for Existing assets & power sector

regulations.

•Existing Generation assets:

Launching a program to optimize operation and

maintenance of GTs & CCGT and steam turbine.

•Power sector regulations:

Review tariff system.

Assess potential impact from DSM measures.






Initiatives

b- Private Sector partnership

Initiatives

The Egyptian government and the electricity sector recognized the

importance of private sector partnership to improve all production

processes and to minimize the investment cost burden.

Gradual subsidies removal over the next five years by designing a

new electricity tariff structure.

Issuing a Feed-In-Tariff for renewable energy trading.

Repairing the new low of electricity (expected to be issued soon).

Initiating the gradual liberalization of the electricity market.

Initiatives for Private sector

b- Private sector Partnership

An area of about 7845 km2 on the Gulf of Suez region and

the Nile Banks has been allocated for NREA for

implementing wind energy projects, Permitted lands are

provided to Investors through Land Use agreement

against 2% of annual generated Energy from the project

or its value.

One window (dealing with one central services unit in the

ministry of electricity and renewable energy).

Bankable PPA (Power Purchase agreement)

Government sovereign Guarantees.

Initiatives for Private sector for

Renewable Energy

(2%) Custom duties for all renewable system

components.

Lower interest rates for Solar project less than 500 KW &

roof top units.

Assessment of environmental impact, including bird

migration.

Investors will benefit from selling Certified Emission

Reductions, CERs, resulted from the implemented

project.

Initiatives for Private sector for

Renewable Energy

Feed In Tariff for PV Power Plant

Residential 84.8 PT / KWh

Other than residential and up to 200 KW 90.1 PT / KWh

From 200 Kw up to 500 KW 97.3 PT / KWh

Installation connected to the low voltage:

from 500 Kw up to 20 MW 97.3 PT/ KWh

Installation connected to the medium voltage

Installation connected to the medium voltage

From 20 Mw up to 50 Mw 102.5 PT/ KWh

Incentives for Renewable Energy

Wind Energy Feed in Tariff Operational Hours Second Stage FiT First Stage FiT

pt / kwhr $ cent / kwhr pt / kwhr $ cent / kwhr

82.08 11.48

82.08 11.48

2500

75.053 10.56 2600

69.46 9.71 2700

63.83 8.93 2800

58.58 8.19 2900

53.68 7.51 3000

63.82 8.93

68.4 9.57

3100

59.53 8.33 3200

55.49 7.76 3300

51.7 7.23 3400

48.12 6.73 3500

44.73 6.26 3600

41.54 5.81 3700

38.51 5.39 3800

35.58 4.98 3900

32.9 4.6 4000

Incentives for Renewable Energy

The Private Sector Investors have taken part in

implementing Generation Power Plants in the

Egyptian power sector through three basic contract

Scheme:

•(BOO or BOOT) schemes

•IPP scheme

Recently, the Egyptian electricity sector encourages

the private sector partnership through the (EPC +

Finance) scheme.


b- Private Sector partnership

Initiatives

Already signed agreements with private investors in power

plants Projects

Already signed agreements with private investors in power plants Projects:

Frame Work Agreement

Power Purchase Agreements

Memorandum of Understanding

Accessibility Land Agreements - FIT


Framework

Agreements MOU

Power Purchase

Agreements

Agreement Parities

Constructing (3200 Mw) Coal Power Plant

(in El-Hamrawain) Site

Party (1): EEHC

Party(2): Orascom/IPIC Consortium

Constructing (6 × 660 Mw) Coal Power

Plant

Party (1): EEHC

Party(2): Dong Fang (DEC)

Smart Meters Party (1): EEHC

Party(2): Huawei

Constructing (2100 Mw) Pump storage

power plant in (Ataqqa) site

Party (1): HPPEA

Party(2): Sinohydro Corporation Ltd.

Accessibility Land

Agreements



Agreement Parities

Constructing (4640 Mw) Coal Fired

Power Plant

Party (1): EEHC

Party(2): Shanghai Electric

Transmission System Development Party (1): EEHC

Party(2): State Grid

Framework

Agreements MOU

Power Purchase

Agreements Accessibility Land

Agreements



Agreement Parities

Power Purchase Agreement from

(2640 Mw) Coal Power Plant in

(Eyoun Mousa) site

Party (1): EEHC

Party(2): Nowise

Power Purchase Agreement from

(2300 Mw) Metoubas Power Plant in

(Kafr El-Shiehk) site

Party (1): EEHC

Party(2): Benchmark

Framework

Agreements MOU

Power Purchase


Agreements



Agreement Parities

Conversion of (Assuit) & (West Dumyat) to be

worked as (750 Mw) CCGT

Party (1): EEHC

Party(2): General Electric/Orascom

consortium

Implementing (5 Billion) Projects: • (3000 Mw) Solar power plant as (600 Mw)

each 5 yrs. • Providing a part of project profits for

development & training on solar power projects (519 M$)

Party (1): EETC Party(2): Sky power/Gulf development consortium

Constructing (2000 Mw) solar power plant

Party (1): EETC

Party(2): Sky power/Gulf development

consortium

Framework

Agreements MOU

Power Purchase


Agreements



Agreement Parities

Constructing (2000 Mw) Projects based on

(BOO) or (EPC+Finance) in addition to

implementing a human development

programs for training, learning& qualifying.

Party (1): EETC

Party(2): Tera Nex/Tera Sola Consortium

•Constructing (2200 Mw) CCGT in (West Dumyat) site.

•Constructing (1500 Mw) solar power plant •Constructing (200 Mw) Wind power plant

Party (1): EEHC

Party(2): Acwa power/Masder Consortium

Framework

Agreements MOU

Power Purchase


Agreements



Agreement Parities

Constructing (6000 Mw) Coal power

plant

Party (1): EEHC

Party(2): Tharwa investment

company

Constructing (2000 Mw to 4000 Mw) Coal power plant in (Safaga) Site

Party (1): EEHC

Party(2): Acwa power

Framework

agreements MOU

Power Purchase

agreements Accessibility Land

Agreements



List of Chinese companies signed MOUs with the ministry of electricity

Harbin Electric Group

AVIC International Holding Company

China Gezhouba Group Corporation CGGC

China Machinery Engineering Corporation

Dong Fang Electric Group

Huawei North Africa Region

Huawei Technologies Co.Ltd

Shanghai Electric Company

Sinohydro Corporation Ltd

State Grid Corp of China

Framework

agreements MOU

Power Purchase


Agreements



Agreement Parities

4 Entry permit

MOUs to some pieces of NREA land

owned in Aswan for executing the

required necessary studies and

measurements for constructing (200

Mw) solar power plants according to

(FIT) contracting model

Part (1): NREA

Parties:

(50 MW) O-capital Company

(50 Mw) FAS Company

(50 Mw) Philadelphia Company

(50 Mw) Static Company

Framework

agreements MOU

Power Purchase


Agreements








Initiatives

c- Changing the energy

Generation mix

Initiatives

Meeting the future electricity demand requires

diversification of the energy mix by including the new

generation technologies (such as clean coal, nuclear and

renewable energy), with taking into consideration choosing

the best generation mix taking into consideration the

optimum:

Technological aspects.

Environmental aspects.

Economical and social dimensions.

The current and expected situation of electricity demand

and peak load and generated energy.

c- Changing the energy Generation mix

In that framework, The importance of coal utilization in

power generation appears as an alternative to natural gas

power plants due to the following:

• The Prediction of resuming the insufficient local

quantities of natural gas to cover the future load

demand.

• The economic competitiveness of coal with comparing

the recent and future predicted exportation prices of

coal and natural gas.

Recent Situation Of Coal utilization in Egyptian power sector:

c- Changing the energy Generation mix

Previous Co-operation with

Japanese Companies

NO Project Name Contractor/

Consortium Task

Contract

date

contract

(Million

US$)

1 Cairo West Steam

Units “5 & 6”

(2 × 320 MW)

Maroubiny Company Steam Boilers 1999 77.8

2 Cairo North (1)

CCGT (750 MW)

Mitsubishi for heavy

industries/Toyota Tosusho Gas Turbines 2002 115.1

Hitachi /Somotomo Transformers 2002 6.7

Hitachi /Somotomo Steam Turbines 2009 34.8

3

Noubaria

(1 & 2) – CCGT

(1500MW)


industries/Toyota Tosusho Steam Turbines 2003 61

AE for energy systems/

Somotomo/ the Egyptian

Company ” Consis”

Switch yard

(500KV) 2003 52.5

Previous Co-operation with Japanese Companies

41


Consortium Task

Contract

date

contract

(Million

US$)

4

Kurimat (2) –

CCGT

(750 MW)

Hitachi /Somotomo Steam Turbines 2005 20.35

5

Cairo North (1)

CCGT

(750 MW)


industries/Toyota Tosusho Gas Turbines 2007 103.4

Toyota Tosusho/Toshiba Mechanical

works 2008 37.4

Ibara Koryorition/Ibara

yusheKora Hydrotech

Pumps and their

accessories 2008 13.5

Toyota Tosusho/Toshiba Electrical works 2008 16



Consortium Task

Contract

date

contract

(Million

US$)

6 El Atf– CCGT

(750 MW)


industries/Toyota

Tosusho

Gas Turbines 2007 104

Toyota Tosusho/Toshiba Mechanical

works 2008 43.5

Ibara Koryorition/Ibara

yusheKora Hydrotech

Pumps and

their

accessories

2008 12.4

Toyota Tosusho/Toshiba Electrical

works 2008 16.5



Consortium Task

Contract

date

contract

(Million

US$)

7

Cairo West

Steam Units

“7 & 8”

(2 × 350 MW)


industries/Toyota Tosusho

Steam

Turbines 2007 99.9

Hitachi /Somotomo Steam Boilers 2007 174.4

8 Abo Qir Steam

(2× 650 MW)


industries/Toyota Tosusho

Steam

Turbines 2009 318.1

9

Ain Sokhna

Steam

(2× 650 MW)

Hitachi /Somotomo Steam

Turbines 2009 301.3

Hitachi Pumps 2010 40

10 Banha CCGT

(750MW) Hitachi / Toyota Tosusho

Mechanical

works 2012 27.2



Consortium Task

Contract

date

contract

(Million

US$)

11 Suez steam

(650MW) Hitachi Pumps 2013 20.8

12

South Helwan

steam

(3× 650 MW)


industries/Toyota

Tosusho

Steam

Turbines 2014 289.1


Recent Co-operation

Opportunities in Power

Projects

Recent Co-operation Opportunities in Power Projects

a- Conventional Thermal power plants

b- Coal Fired thermal Power plants

a- Conventional

Thermal power plants

Power Plant Installed

Capacity (MW)

Process

number Expected Tendering date

Cairo West Steam 1 × 650 Mw 18 Start: 1st half 2015

Closing: June 2016

Assuit Steam P.P 1 × 650 Mw 17 Start: 1st half 2015

Closing: June 2016

Damanhur CCGT 1 × 900 Mw 19 Start : last quarter of 2015

Closing: end of 2016

MHI participate in the (Suif) site tender among 14 other investor


EEHC Multi-Packages Tenders

EPC + Finance

Gas Units Conversion to CCGT to face Summer 2015 loads

Power Plant Installed Capacity

(MW)

Commissioning date of gas

units

Assuit 8 × 125 Mw

Units (1,2,3) in 31/5/2015

Units (4,5,6) in 30/6/2015

Units (7,8) in 31/8/2015

West Damietta 4 × 125 Mw Units (1,2) in 30/6/2015

Units (4,3) in 31/7/2015

El-Mahmoudia 2 × 160 Mw Unit (1) in 31/7/2015

Unit (2) in 8/8/2015


Power Plant Installed Capacity

(MW)

Commissioning date of

gas units

Ataqa 4 × 160 Mw

Unit (1) in 31/5/2015

Unit (2) in 8/6/2015

Unit (3) in 16/6/2015

Unit (4) in 1/7/2015

Sharm El-sheikh 6 × 48 Mw

5 /2015 Hurghada 6 × 48 Mw


Gas Units Conversion to CCGT to face Summer 2015 loads

b- Coal fired Thermal

Power Plants

b- Coal fired Thermal Power Plants

Recent MOU signed with Chinese companies for Coal power plants implementation

Coal power plants to be financed by EXIM- Bank

Coal power plants to built through BOO or Boot Model


Company Name Project

Capacity Budget

(Billion USD)

AVIC 1320 MW 2

Shanghai Electric

Corporation & Shanghai

Electric Power

2640 Mw 4

Dong Fang 1320 Mw 2

NWPC 1320 Mw 2

Coal power plants to built through Chinese private sector investors under (EPC + Finance) scheme.


Coal power plants to built through Chinese private sector investors under (EPC + Finance) scheme.


Capacity Budget

(Billion USD)

CGGC 1320 MW 2

CMEC 1320 Mw 2

Harbin 1320 Mw 2

AVIC 1320 Mw 2

Sino-Hydro 1320 Mw 2


Recent Candidate sites for Coal power plants implementation




Capacity

Budget

(Billion USD)

AVIC 1320 MW 2

Shanghai Electric

Corporation & Shanghai

Electric Power

2640 Mw 4

Dong Fang 1320 Mw 2

NWPC 1320 Mw 2




Capacity

Budget

(Billion USD)

CGGC 1320 MW 2

Shanghai Electric Corporation & Shanghai

Electric Power 2000 Mw 3.5

CMEC 1320 Mw 2

Harbin 1320 Mw 2

AVIC 1320 Mw 2

Sino-Hydro 1320 Mw 2



In the Light of the previous, the Japanese Side is invited to

co-operate with the Egyptian side in the field of

implementing coal power plants according to the following

suggested steps:

1) Sign MOU between the two parties includes providing the

Egyptian side with a preliminary technical and

economical feasibility study carried out by the Japanese

side as EPC + finance.

2) Signing an (EPC + Finance) contract between parties in

the light of preliminary feasibility study results.

Fruitful expected Egyptian – Japanese co-

operation framework

In the frame work of the continuous co-operation between the

Japanese and the Egyptian sides specially in the energy sector

with the most advanced and efficient technologies, And with

taking into consideration that the coal power plants are one of

the most essential promoted projects decided to be established

in Egypt. It is expected that the Japanese side continue its

effective support to the Egyptian side in different energy

projects specially the coal fired thermal power plants.

Fruitful expected Egyptian – Japanese co-

operation framework


Damanhour

CCGT

•6th October

•Cairo west

•Assuit (Waledia)


Attaqa

Sharm Elsheik

Hurghada

West Domiaata El Mahmoudia

Assuit

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