9 months ago

280218_Luxor-Egypt SECAP Final_revised

The GIU will support

The GIU will support companies in different projects: - Improving industrial processes to reduce energy consumption; - Promoting renewable energy units on the roof tops of factories and workshops; and - Improving production models to reduce waste generation and improve reuse and recycling. Note: Depending on the detailed understanding of energy consumption from the industry, it will then be possible to identify more precise actions to implement in order to reduce energy consumption in this sector. It is also important to mobilise the industry, as some entrepreneurs could be interested in developing knowledge and expertise to be able to offer services to other sectors in order to answer demands for equipment or services to support the energy transition. For example, if solar heating systems are adopted in different sectors, then it would be interesting to support the development of a local production of such devices. This would for sure generate a positive spiral in favour of the development of a green economy in the Governorate of Luxor. Expected results Assumptions: - Awareness can lead to 20% cuts in 50% of the sector - Specific projects could generate an additional 30% cut in 10% of the sector. Energy in MWh/year Situation in 2015 Cut expected in 2030 Situation in 2030 GHG in tCO 2eq/year Energy GHG Energy GHG GHG (BAU) Cut/ BAU 70 Industry 518,354 155,315 - 67,386 - 20,010 200,356 10 % Awareness campaign - 51,835 - 15,351 Specific projects - 15,551 - 4659 Budget These figures are rough estimates of budget required per action for the period 2018-2020 and ROI. Awareness to reduce consumption 30,000 € 1 to 2 years Specific projects 1,000,000 € 3 to 4 years 4.3. Renewable energy development Despite the availability of sun, wind, water force in the Governorate of Luxor, like in many other parts of Egypt, renewable energy is only emerging as a source of generating electricity. People are relying on electricity produced in utilities powered by fossil fuel and classical solution for mobility based on diesel or gasoline. The global uptake of renewable solution should push the Governorate to explore all opportunities available to develop new production models. Following this route, the Governorate of Luxor will reduce its dependency on “imported energy” and spark a new economy that will create jobs and generate revenues for local industries and people. Solar PV The Egyptian Government is willing to support renewable energy development and for this reason adopted

a feed in tariff policy. If this policy seems to be adapted to large-scale investments, it doesn't represent a real boost for households units. Indeed, the gap between FiT (Feed-in-Tariff) offered for such small unit and the price of electricity for individuals is not significant to speed up investment. Feed-in-Tariffs solar power FiT (1) FiT (1) EUR cents FiT (2) FiT(2) EUR cents Households (piasters kWh) EGP 84.80 4.0 102.90 4.9 Commercial up to 500 kW (piasters kWh) EGP 90.10-97.30 4.3-4.7 108.50 5.2 500 kW – 20 MW (US cents / kWh) 13.60 11.5 7.90 6.7 20 MW – 50 MW (US cents / kWk) 14.30 12.1 8.40 7.1 Source: Egyptian Electricity Holding Company - EEHC, MoERE Exchange rate of NBE for 1 Euro = 20.8608 EGP Large-scale investments facilitated by foreign companies are not facing the same type of problem. For example, a German-Swiss venture, Terra Sola, in cooperation with the Egyptian Government agreed to commence a solar power projects for US$ 3.5bn in Luxor. Terra Sola not only proposed to install a 2000 MW capacity solar power plant, but to establish solar power module and inverter factories. The plan also includes efforts to train new Egyptian professional in this sector. Studies conducted by Terra Sola assessed that these comprehensive solar projects (10 solar power stations, with a 200 MW capacity each) could cover most of Egyptian electricity needs while creating 50,000 jobs, beside training and qualifying over 10,000 workers and employees 13 . As Terra Sola also plans to establish a dedicated fund to developing and supporting small and medium-sized renewable energy projects in Luxor, the Governorate of Luxor should develop a partnership with this company targeting different objectives: - Develop solar PV units on all Governorate buildings: Potential of Solar PV equipment has been explored for various public buildings and a first experiment seems to be very promising (conducted in 4 public buildings in Luxor); - Develop specific projects for other symbolic buildings: schools, mosques, churches, hospitals and health centres; - Implement solar “umbrella” on parking lots and bus stations. This would be particularly appropriate for parking lots close to the heritage sites. They will offer a valuable shade for people and cars, and would be used to power lighting and AC in antiquities and museums; and - Promote small scale units for households. There are other projects in development as part of the new Government of Egypt’s Feed-in-Tariff (FiT) program launched in late 2014 for both solar and wind. The Phoenix Power 1 project includes a solar PV power plant with a capacity of 62 MWp to be located in Ben Ban, Egypt (Governorate of Aswan). This big unit will be another opportunity to steer the development of Solar PV in Upper Egypt. In 2017, the Ben Ban Solar 13 71

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