(MENAFN- Daily News Egypt) Prime Minister Mostafa Madbouly chaired the Supreme energy Council meeting at the cabinet headquarters in New Alamein City.
At the outset, Minister of Electricity and renewable Energy Mahmoud Esmat presented updates on the Integrated Sustainable Energy Strategy up to 2040. He emphasized the need to revise the strategy due to internal and external changes in the energy sector, global economic shifts, and emerging technologies like green hydrogen. The exclusion of coal from the energy mix also necessitates this update, aiming to increase the share of renewable energy and incorporate green hydrogen into Egypt's energy mix.
During the meeting, the Minister discussed the status of renewable energy projects, highlighting that wind power projects with a total capacity of 3,450 megawatts are under development. These include the Red Sea project by the Orascom, Engie, and Toyota consortium, the Amont“Nuis” project, the ACWA Power project, and the Masdar project.
He also noted that solar energy projects with a total capacity of 3,700 megawatts are being implemented, including the Abydos 1 and 2 projects, Scatec, and Masdar. Negotiations with developers have led to commitments to implement battery storage systems with a total capacity of 2,840 megawatt-hours, enhancing the performance and stability of the national electricity grid.
Esmat mentioned ongoing coordination with the Ministry of Planning, Economic Development, and International Cooperation to secure funding for grid-strengthening projects, aiming to connect and offload renewable energy projects by the summer of 2025. The meeting also reviewed the progress of studies on integrating renewable energy capacities into the grid and identifying the best technical and economic solutions for national grid stability.
He outlined measures to encourage private sector investment in renewable energy projects, noting that land has been allocated to the New and Renewable Energy Authority for projects, including green hydrogen production, covering approximately 42,600 square kilometres. An environmental impact assessment, including a bird migration study, has been prepared. Additionally, a government guarantee has been provided to the Egyptian Electricity Transmission Company to ensure payment for energy purchased from investor projects. Long-term power purchase agreements extending up to 25 years have also been signed.
Incentive measures include granting land for project establishment in exchange for 2% of the electricity produced annually. Customs duties on components and spare parts of renewable energy systems have been reduced to 2% from 5%, and the value-added tax has been lowered to 5% from 14%. Investors are also being granted electricity production licences from the Electricity Regulatory Authority, and approval has been given to increase turbine height limits to 220 meters on all lands allocated for wind power projects. These measures aim to enhance the economic feasibility of the projects.
MENAFN26082024000153011029ID1108603649
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.