Under the support of the Federal Ministry of Economics and Energy the German-Arab Chamber of industry and Commerce (GACIC) organized The 5th Egyptian German Day renewable Energies. The one day conference brought to discussion Egypt's electrical crisis, the Wind Energy and grid integration.
In his opening words, Dr Rainer Herret CEO of the GACIC mentioned that one of the demands of the Egyptian revolution beside freedom was bread by creating more jobs for the youth of this country. He highlighted that Egyptian government have stated that it would provide USD 5 billion for rehabilitation of the grid saving energy and integrating more renewable power plants. That approach that the Egyptian government is adapting through several policy reforms that is taking place should create more jobs for technicians and Engineers. It would also strengthen the ties of collaboration between Germany and Egypt in transferring know how and technology.
Jelka Schedlinksy consultant by order of the renewable energies export stated that since the fukushima nuclear power plant accident in Japan, the German Government is working on phasing out nuclear power plants by 2022 and strengthening a strategy in support of renewables entitled Energiewende ( Energy transition). The strategy aims at a sustainable economy by means of renewable energy, energy efficiency and sustainable development. Renewable energy encompasses wind, biomass (such as landfill gas and sewage gas), hydropower, solar power (thermal and photovoltaic), geothermal, and ocean power.
According to Schedlinksy, there is a comprehensive support by the federal government to German small and medium enterprises in the field of renewable energy by adopting and an export initiative entitled: Renewables-Made in Germany that would lead to further investments and technology transfer. Through her talk, Schedlinksy introduced to the attendees the representatives of the four German companies who came to Egypt to share the knowledge and areas of expertise in wind, solar power plants and grid systems.
Dr Hafez Al-Salmawy managing director of the Egyptian electric utility and consumer protection presented the framework and Market for electricity, renewables with focus on Wind energy.
He highlighted that part of the problem in Egypt is related to the lack of sufficient supply of fuel to fulfill the growing demand for electricity specially that Egypt is still depending on energy intensive economy.
He pointed out that since February 2008, Egypt launched a strategy for raising the share of renewable energy in the electricity production to reach 20 percent by 2020 (12 percent from wind farms and 8 percent from solar energy)
Al-Salmawy added that there are several aspects for the growth of investments in wind farms versus solar energy and that is due to the accumulated experience of the local authorities in managing wind farms in Zaafarana. The share of local supplies reaches 70 percent and the cost of electricity production is very competitive. In addition, he added that there are good locations for wind farms along The Gulf of Suez and in several specified areas at the east and west cost of the Nile. These expected projects would produce between 7 and 8 thousand megawatt of electricity.
Al-Salmawy stated that they have finalized the Grid code and the Renewable portfolio standards for the companies who would be interested to invest in wind or solar power plants and that the New and Renewable Energy Authority (NREA) is working now as a one shop stop for getting all the required permissions for investors in renewable energy.
Regarding the pricing policies, Al-Salmawy highlighted that there are varied policies that could be implemented like the feed in tariff, net metering and green pricing…He also added that the adoption of any of these policies depend on the approach that the government want to take whether a pushing policy for renewables by supporting building power plants or a pulling policy to support consumption of electricity from renewable sources, which by default would attract further investments in power plants.
The Conference was followed by an intensive week of meetings organized by GACIC to the German companies with the local authorities and Egyptian investors to strengthen the mutual collaboration in building renewable power plants and grid integration.