Page 11 - AfrElec Week 33

AfrElec RENEWABLES AfrElec

Egypt’s NREA, Denmark’s Vestas to

sign 250MW wind farm contract

EGYPT EGYPT’S New and Renewable Energy Author- submitted offer, which resulted in its exclusion.
ity (NREA) has signed an agreement with Ves- Indeed, the current coronavirus (COVID-19)
tas and other European partners to develop a pandemic had delayed the contract’s signing,
250MW wind project located in the Gulf of Suez. although both the funding agencies and Vestas
The project’s investment cost will total €228m have been happy to work with the delays.
($263mn), to be financed through an umbrella The wind farm will be built on land allocated
agreement between the Arab Republic of Egypt, to the New and Renewable Energy Development
the French Development Agency, the EU, the and Use Authority on the western coast of the
European Investment Bank (EIB) and the Ger- Gulf of Suez in the Red Sea Governorate, which
man Development Bank (KfW). benefits from high wind speeds.
The ongoing construction of renewable The wind farm will be built within 35 months
energy sources in Egypt comes as part of the and will create around 4,000 temporary job
government’s electricity and renewable energy opportunities during the construction phase
sector plan. It aims to bring the share of Egypt’s and around 100 permanent job opportunities
renewable energies to 20% of the national energy throughout the lifetime of the wind farm.
output by 2022, and to over 42% by 2035. This The Egyptian government’s electricity and
will contribute to expanding the output of renewable energy sector plan aims to bring the
Egypt’s renewable resources to 6 GW, includ- share of Egypt’s renewable energy to 20% of
ing hydropower and other projects currently national energy output by 2022, and to over 42%
underway. by 2035.
The NREA reviewed and approved the only This will contribute to increasing the output
offer, submitted by Vestas, for the wind farm ten- of Egypt’s renewable resources to 6 GW, includ-
der. This follows Siemens Gamesa having pre- ing hydropower and other projects currently
viously refused to extend the validity of its own underway.™

NEWS IN BRIEF

POLICY industry, President Félix Antoine Tshisekedi Kenya Power faces costly
requested its Minister of Hydrocarbons,
Democratic Republic of Hydraulic Resources and Power and its burden of idle electricity
Minister of Finance to fasttrack legal processes
Congo expresses strong and permits pertaining to the valorisation of Kenya Power is facing the increased burden of
paying for idle electricity as power generators
the natural gas produced onshore by Perenco.
political will for gas The decision was taken at the latest Council of increase production to five-month high
amid reduced consumption by homes and
Ministers last week in Kinshasa.
monetisation projects monetisation of natural gas through power businesses in the wake of Covid-19.
The move is expected to result in the
Latest figures from the Energy and
Surrounded by major African oil and gas generation, especially to address the DRC’s Petroleum Regulatory Authority (Epra) shows
producers Republic of Congo and Angola, the energy deficit and provide stable supply of that power producers such as KenGen
Democratic Republic of Congo (DRC) has power to its booming mining industry. increased their supply to Kenya Power to
so far remained relatively absent of Africa’s “We are extremely optimistic about the 980.33 million kWh in July.
league of hydrocarbons producers. In 2019, future of oil & gas in the DRC given current The supply is a 7.4 percent rise from 912.89
only French independent Perenco produced political support for the industry. While million kWh and is the highest since January
from the DRC, at an average rate of 25,000 market-driven policies are needed to ensure output of 986.08 million kWh, piling pressure
boepd from 11 onshore fields. investments in gas monetisation, an enabling on Kenya Power given the subdued demand.
In this context, the administration of environment is key to unleashing the massive Kenya Power has since April been unable
President Félix Antoine Tshisekedi has potential of the DRC and the energy industry to sell about 24 percent of the power or 214
made energy security and investment its top is open to supporting the DRC,” stated NJ million kWh it bought from generators like
priority, seeking to get massive hydropower Ayuk, Executive Chairman at the African KenGen.
projects off the ground but also to diversify Energy Chamber. The take-or-pay clause contained in
the country’s energy basket and create jobs in AFRICAN ENERGY CHAMBER contracts signed between government and
the process. power producers compels Kenya Power to buy
In yet another decision supporting the the agreed amount of electricity regardless of
development of the DRC’s hydrocarbons POLICY whether or not the utility needs the energy.

Week 33 20•August•2020 www. NEWSBASE .com P11