International renewable energy companies take interest in Marsa Allam

Power cuts are a nuisance to any domestic home, for the tourism industry however they can pose serious problems.

The rapid growth in tourism causes an increase in power consumption especially for hotels and resorts. According to Tarek Shalaby, Deputy Manager of the Investors Association, alone in the region of Marsa Alam hotels consume up to 10,000 tonnes of fuel on a daily basis. Most recently, this need could no longer be satisfied by the contractor Egypt Petroleum. As a result, many hotels suffer severely under the fuel shortage that is currently crippling the entire country. Due to their dependence on fossil fuels they now have to satisfy their needs on the black market, thus putting up with an increase double the original price for fuel. This random price rise of about 50 % for energy products causes again a negative impact on hotels’ budget policy, especially in terms of investments and paying wages.

On the long run, the situation demands new solutions for the energy supply of hotels and resorts. This and recent discussions about the efficiency of renewable energy prompted the Investor Association in Marsa Asalam to check the feasibility of an offer they got from the RES Group, a UK-based renewable energy company, the German Society of International Cooperation (GIZ) and a group of Italian tourism investment companies that provide green-tec-solutions for hotels and resorts.

In case a contract becomes effective, the project financing is carried through by a Build-Operate-Transfer (BOT) model, wherein a private entity receives a concession by the private or public sector. The thedailynewsegypt reports in its coverage that the Association is in contact with official organs like the Ministry of Tourism, the General Authority for Tourism Development, international donor organizations, and the New and Renewable Energy Authority under the Ministry of Electricity.

One unit provides 1 MW of electric power from solar energy and covers an area of about 20.000 m2. To guaranty a full supply of all hotels in Marsa Asalam Shalaby considers 80 photovoltaic stations worth 170 Mio. EUR to be necessary.

Source: thedailynewsegypt

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    German-Arab Chamber of Industry and Commerce
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    British Egyptian Business Association
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    French Chamber of Commerce in Egypt
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    Delegation of the European Union to Egypt
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    Italian Chamber of Commerce in Egypt