280218_Luxor-Egypt SECAP Final_revised

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
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