020318_Hurghada SECAP_FINAL

- Egyptian Armed Forces Operations Authority EAFOA), MoD to obtain ‘No objection’ for the construction of the
project in the allocated land of the SPP and coordination with the EAFOA during project construction.
3. Technical description
a. Link to Governorate (Municipal) Solar Development Plan
The SECAP is built on three drivers: a) reduce energy consumption; b) develop energy production; and c) climate
adaptation actions. Solar energy offers significant potential and is pretty easy to develop. The Energy Supply and
Renewable Energy Development Plan will contribute to increase the share of generating electricity from renewables and
promote a “new culture” regarding energy in the south part of the country.
The Governorate plans to increase the share of solar electricity production capacity from 13 MW to 35.25 MW. This
project will assist the Governorate in reducing dependency on fossil fuels and decrease the cost of fuel transport to power
plants that run on diesel in the southern region of the Governorate. It will also enhance the Governorate sustainable
energy prospectus, yet contributing to Egypt’s vision and Sustainable Development Strategy (SDS) 2030 and its targets of
having 22% RE in the energy mix by 2022. In this respect, the Governorate will contribute to Egypt’s SDS key performance
indicators (KPIs) that are relevant to SECAP, mainly in Energy, Urban development, Environment, and Domestic energy
policy.
b. Implementation plan
The plan is to develop additional Solar PV capacities in 5 towns of the Governorate of Red Sea: Marsa Alam,
Al-Shalateen, Halayeb, Abou Ramad and Arab Salah.
Assumptions:
- Cost of a 1KW unit = 1,500 US$ = 1,278 € in the south region of Red Sea Governorate,
- 1 kW in Egypt would produce around 5.2 kWh/day and 1898 kWh/year
- KWh purchase is based on 2017 Feed in Tariffs regulation implemented by EETC (Egyptian Electricity
Transmission Company) set as follows:
- 102.32 piasters per 1 kWh (49.6 € / MWh) for houses – capacity less than 200 kWh,
- 108.58 piasters per 1kWh (53 €/MWh) for commercial activities less than 500 kWh,
- 78.8 piasters per 1 kWh (40 € /MWh) from Solar PV power plant 500 kW to less than 20 MW
Exchange rate of EGP Piasters = € at 0,21 / € to US$ at 0,8523 (1 € = EGP 20.65 as per the ECB of 08.10.2017)
The project could be phased in order to facilitate its implementation, however, the sooner the Governorate will invest
the greater the impact will be on the overall economy and energy balance. So the recommendation would be to plan
investments in two rounds as explained below.
The very first phase of the project will require a precise assessment of existing capacities and a detailed analysis of
additional capacities to be added and the identification of the best options for managing these additions.
The first round of investment over the first two years aims for an increase of 15 MW and includes:
- Upgrade the current 5 MWp in Al-Shalateen solar power plant to 10 MWp, i.e. adding 5 MWp.
This investment would be 6,390,000 € adding a production of 9,490 MWh for an annual income of 474,500 €.
- Upgrade the current 1 MWp in Halayeb (serving residential houses adding 4 MWp.
This investment would be 5,112,000 € adding a production of 7,592 MWh for an annual income of 379,600 €.
- Upgrade the current 5 MWp in Marsa Alam serving the city to 8MWp, i.e. adding 3 MWp.
This investment would be 3,834,000 € adding a production of 5,694 MWh for an annual income of 284,700 €.
- Upgrade the current 2 MWp in Abou Ramad plant serving Abou Ramad small town to 5 MW i.e. adding 3 MWp. This
investment would be 3,834,000 € adding a production of 5,694 MWh for an annual income of 284,700 €.
This first round of investment will amount 19,170 K€*
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