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020318_Hurghada SECAP_FINAL

2. Capacity building of

2. Capacity building of the Egyptian society to adapt to CC risks and disasters. 3. Enhance national and regional partnership in managing crises and disasters related to CC and reduction of associated risk. Tourism sector: 1. Reduce climate change risks in touristic areas. 2. Engage users in supporting the proposed strategy. 3. Support periodical monitoring and observations systems and follow-up bodies. 4. Raise environmental awareness. 5. Cooperate with international bodies. 6. Incorporate disaster risks promoting sustainable tourism in Egypt. 7. Capacity building of local communities in touristic areas. This Action Plan ≠ 3 – Sustainable and Green Hotels and Resorts would also support the Governorate strategy in meeting the set policies in the Nation Climate Change Communication report, mainly the policies targeting development that is more sustainable based on four related pillars: 1. More efficient use of energy, especially by end users. 2. Increased use of renewable energy as an alternative to non-renewable sources. 3. Use of advanced locally appropriate and more efficient fossil fuel technologies, which is less-emitting. 4. Energy efficiency is the cornerstone to be targeted by policy makers to decouple demand on energy and economic growth. Implementation plan Component 1: The Governorate first needs to get a more sophisticated understanding of hotels and resorts level of sustainability across the city and issues to be solved. Component 2: From the detailed description of issues at stake, the study will draw strategic priorities with a double objective in mind – improve hotels/ resorts sustainable operation and reducing their environmental footprint. This could include: • Establish a coordination unit to manage the action plan, prioritizing collective action to change mind set of hotels and resorts and highlight the benefits of using clean energy, providing healthier conditions for users, • Review the current status of hotels and resorts as well as operation rules to switch to natural gas and SWH systems and improve efficiency, • Explore innovative solutions and technologies that would significantly convert these hotels/ resorts, • Developing incentives as well as regulations’ measures adding constraints on hotels/resorts that to run by diesel and making it a more attractive choice to use natural gas and SWH systems instead, and • Implementing a common methodology to measure GHG emissions, report on them and monitor all other benefits deriving from the development of sustainable hotels/resorts operations by Natural Gas/ SWH. From data collected through the BEI establishment an hotel in Hurghada consumes in average: • 4,360 MWh/y of electricity, • 1,305 MWh/y of natural gas, and • 1,679 MWh/y of diesel. When hotels are not connected to the natural gas grid, they consume more diesel and electricity instead of gas. Component 3: Clean energy and Natural gas – for 32 hotels The plan will articulate the different options in comprehensive scenarios taking into account all hotels and resorts operation (efficiency, comfort, energy consumption and GHG emissions) and assess the environmental impacts of the different proposed scenarios once these hotels and resorts are converted to run with clean energy (natural gas combined with SWH) instead of the current fossil fuel (diesel consumption reaches 365 tons/yearly/ hotel in average) 134

The action plans (stage A) to supply natural gas to 32 hotels in the northern part of the city and install SWH. Each hotel will then change its energy mix from electricity and diesel to electricity, natural gas and solar. This means in average, moving from 5,065 MWh/y electricity (2,275 tCO2eq) + 2,279 MWh/y of diesel (611 tCO2eq) to 3,000 MWh/y electricity (1,644 tCO2eq) + 3,000 MWh/y of gas (606 tCO2eq) + 232 MWh/y solar heating. Better performance of gas and solar for heating water allow for an overall consumption reduction of 15%. This new mix will result in electricity consumption reduction of 2,065 MWh/y per hotel so 66,080 MWh/y for 32 hotels, and reduce diesel consumption to zero meaning a global cut of 2,279 x 32 hotels = 72,928 MWh/y. However, the gas consumption will increase by 3,000 x 32 hotels = 96,000 MWh/y. Hence, the global energy consumption gain represents 66,080 + 72,928 – 96,000 = 43,008 MWh/y (1,344 per hotel). This new mix will also generate a GHG emission reduction from 2,886 tCO2eq to 2,270 tCO2eq = 616 tCO2eq/hotel meaning 19,712 tCO2eq for the 32 hotels concerned by this program. These 32 hotels and resorts would need in average 275,000 cubic meters per year amounting 9 million cubic meters for this group of 32 hotels. Component 4: Renewable energy / Solar Water Heating for 70 hotels Hotels and resorts need water for their visitors and their equipment (swimming pool). Solar is an easy solution to warm water. Any hotel / resort with 300 rooms will need around 50.000 litres per day (166 litres per room per day) half of it been warm enough for sanitary use and washing (towels, sheets, soils). To produce 25,000 litres of warm water it means a minimum collector surface of 250 square meters (250 collectors of 1 square meter). Kits available on the market are composed of a tank connected to 3 collectors. Each units’ costs EGP 12,000 (€ 584) all-inclusive (2017 prices). Full equipment for one hotel will then cost around 50,000 € (84 units at 584 €). Such an installation will produce 231,800 kWh/y avoiding electricity expenses of 8,200 €/y, hence offering a payback period of 6 years. In the meantime, it will reduce GHG emission by 127.5 t CO2eq/y. The plan is to equip 70 hotels and resorts to operate with SWH systems. Among the 150 hotels in the City of Hurghada, 32 are already counted in the component 3 above, and 40% are already equipped with SWH systems. Each hotel will then change its energy mix from electricity, natural gas and diesel to electricity, natural gas and solar. This means moving from 4,360 MWh/y electricity (2,389 tCO2eq) + 1,958 MWh/y of natural gas (396 tCO2eq) + 1,024 MWh/y of diesel (274 tCO2eq) to 3,000 MWh/y electricity (1,644 tCO2eq) + 3,000 MWh/y gas (606 tCO2eq) + 232 MWh/y solar heating. Better performance of gas and solar for heating water allow for an overall consumption reduction of 15%. This new mix will result in an electricity consumption reduction of 1,360 MWh/y per hotel so 95,200 MWh/y for 70 hotels, and reduce diesel consumption to zero meaning a global cut of 1,024 x 70 hotels = 71,680 MWh/y. However, the gas consumption will increase by 1,042 x 70 hotels = 72,940 MWh/y Hence the global energy consumption gain represents 95,200 + 71,680 – 72,940 = 93,940 MWh/y (1,342 per hotel). This new mix will generate a GHG emission reduction from 3,059 tCO2eq to 2,250 tCO2eq = 809 tCO2eq/hotel meaning 56,639 tCO2eq for the 70 hotels concerned by this component of the program. These 70 hotels and resorts will need in average 275,000 cubic meters per year amounting 19 million cubic meters for this group of 70 hotels (1 million cubic meters than what is currently supplied to hotels in the City of Hurghada). The overall cost of SWH equipment for these 70 hotels would reach 3.5 m€. Considering that the return on investment will be attractive enough for hotel owners it is recommended to set up a revolving fund of 1.5m€ asking hotel owners to start pay back the investment from year 1 in order to replenish the fund in 6 years an allow for more investment to be supported. With such a mechanism all the 70 hotels and resorts targeted could be converted before 2025. The City of Hurghada will set up a management unit to administrate the fund (With an overall cost of 30 K€ per year). 135

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