The NREA- Nowais; land-use license agreement to construct a 500mw wind power plant with BOO system

Today, Dr. Mohamed Mustafa Al-Khayat; NREA CEO, signed a land-use licensed agreement with Eng. Hussein Al Nowais, Chmn the Emirates Al-Nowais Company, for the purpose of constructing a 500mw wind power plant with BOO system; building, ownership and operation, on an estimated 70km squared area from land allocated to NREA, in the West Coast of the Gulf of Suez.Its total area is about 1228 km squared: in accordance with Republican Decree No. 116 of 2016 for usage in establishing electrical production projects from renewable energy resources.

To implement the state’s insurance strategy to supply electical energy and to diversify its resources.
This includes an increase of 20% contribution of renewable energy to the electrical energy mix of the total installed capacity in 2022.
In 2035, it is expected of a doubling possibility of the tota produced electrica energy; which mainly depends on the participation of the private sector.

It is worth noting that EETC; the Egyptian Electricity Transmission Company, will purchase the produced energy from the project at a price of 3.1 cents/ kilowatt per hour, including the right to use the land; according to a previously signed agreement to purchase electrical energy with Nowais Company at the headquarters of the Council of Ministers on 10/12/2019. The total of the expected investment of the project is about 500 million US dollars; equivalent to about 8 Billion Egyptian pounds.

As a matter of fact, the total installed wind power capacity is currently 1375 MW, (80 per cent owned by NREA and 20 per cent owned by the private sector), and a 250-MW wind power station in the Gulf of Suez has also been built, which is expected to be completed and operational in September 2021.
It is important to mention that the implementation of this project is a part of optimizing the benefits of Egypt’s enormous renewable energy potential, and the government‘s movement towards speeding up its deployment through establishing stable public policy structures and regulatory legislation that provides clarification and trust to the investors. Thus, it led to an effective completion of the usage and operation of the Benban Solar Energy Park, as one of the biggest global undertakings with a limit of 1465 MW through 32 financial specialists, that exceptional solid cluster of sustainable power source extends in Egypt.
This mirrors the certainty of speculators and worldwide financing parties in the venture atmosphere in Egypt, which could be a chance to raise the roof of aspirations and increment interests in the field of renewable energy source by a huge rate; not exclusively to build the inventory of electric energy, but also to help support monetary development, make employments, and create manufacturing the local.