(MENAFN - Daily News Egypt) The International Finance Corporation (IFC) is planning to launch a project for the construction of 600MW solar power plants west of the Nile under the auction scheme in August.
Sources at the ministry of electricity told Daily News Egypt that the IFC will set the controls and the mode of presenting the offers and their assessment, given that the auction system will be implemented in Egypt for the first time.
The sources explained that the electricity ministry will launch a 200MW project as a first stage in the auction scheme, and will put the rest of the capacity in two phases, as well as continue to work in the projects offered different systems such as Engineering, Procurement and Construction (EPC + Finance), build, own, operate (BOO), public private partnership (PPP), and the feed-in tariff.
The IFC is working as a major consultant, building its successful renewable energy programme by providing a transparent mechanism to determine solar energy supply prices, which will help support the government to boost its renewable energy production as a competitive source of electricity, the sources added.
Eighteen companies and alliances qualified in the pre-experience bids for the project. The list of companies includes GCL New Energy Holdings, Masdar-Ginko, NTBC Limited and the alliance Karm Solar – First Solar – Light Source and Infinity, EDRA, Orascom, Al Fanar-Risin Solar Technology, Skatek Solar Azure Power, and TAQA Arabia & SolarReserve consortiums.
The new and renewable energy authority grants the land to the executing company for a period of 25 years. The operator of the stations will design, implement, finance, and operate the plants under the BOO system. The Egyptian Electricity Transmission Company will purchase the energy produced from the projects under the energy purchase agreement.
The new and renewable energy authority allocated 4200 sqkm to establish solar and wind stations in the western Nile in the governorates of Beni Suef, Minya, and New Valley, in addition to 2,200 sqkm in the east Nile to establish solar and wind stations in Beni Suef, Minya, and Assiut governorates.