The Egyptian Electricity Holding Company (EEHC) has launched a tender for the construction and operation of an 8.2 MW solar plant and a 2 MW/4MWh battery energy storage system in Egypt’s western Siwa Oasis.
Image: Collected
Deadline for Submission
EEHC is seeking expressions of interest from domestic and international firms to design, build, and operate the project. The proposed site is a 16-hectare plot within the Siwa Oasis that already hosts a microgrid and a 10 MW photovoltaic (PV) system.
According to a report from Solar Quarters, the goal is to expand the existing PV system to strengthen the microgrid and increase the electricity supply to nearby rural areas.
The deadline to submit expressions of interest to EEHC is June 3, 2024. As outlined in the tender document, a call for proposals will follow in the summer, with the contract expected to be awarded in early December.
As of the end of 2023, Egypt had 1,836 MW of installed solar power, according to the International Renewable Energy Agency (IRENA). The government aims for renewables to make up 42% of the country’s energy mix by 2030, with 22% coming from solar. Achieving this target will require an estimated 31 GW of solar capacity.
Egypt’s Evolving Energy Landscape: A Transition Towards Renewable Sources
Egypt’s renewable energy journey began with significant wind power projects that reached 555 MW of capacity by 2012, driven primarily by donor support rather than government initiatives to harness renewable resources. Siemens’ completion of three massive combined-cycle gas-fired power plants in 2018, totaling 14.4 GW, highlighted Cairo’s emphasis on natural gas.
The Russian-Ukrainian conflict caused a spike in gas prices, pushing European markets to search for alternative fuel sources. This shift benefited Egypt, which supplied 80% of its liquefied natural gas exports to Europe.
According to Egypt’s New and Renewable Energy Authority (NREA), the country’s power generation mix is currently dominated by thermal sources at 80%, with wind (12%), hydro (6%), and solar (2%) making up the rest.
The government plans to dramatically shift this balance, aiming to raise the share of renewables to 42% by 2030, with solar power contributing 22%. Achieving this ambitious target will require a massive expansion of solar capacity from 1.77 GW to 31 GW, with a longer-term goal of 60% renewables by 2040.
By the end of 2023, Egypt’s solar capacity was composed of several key projects, including 1.5 GW at the massive Benban complex, 26 MW at Kom Ombo near Aswan, and 50 MW at the Zafarana project on the Red Sea coast, operated by the Belectric-CCC joint venture.
In addition to these large-scale plants, the country’s capacity also included 97 MW of rooftop and 30 MW of standalone solar capacity. The remaining 102 MW was distributed among various commercial, industrial, and smaller-scale arrays.
Egypt’s Pioneering Venture into Utility-Scale Photovoltaic Development
Egypt’s utility-scale photovoltaic (PV) development is centered on Aswan, tapping into the region’s solar wealth and vast land. The Benban project, 50 km from Aswan, is a prime example, comprising 41 projects across 37 km² with a capacity of 1.4–1.8 GW. The $4 billion development was funded by institutions like the IFC and AfDB.
Benban operates under feed-in tariffs (FITs) that provide operators with guaranteed prices for 25 years, a model that has created 6,000 jobs and developed local expertise. Specific projects, like Voltalia’s RA venture, use Suntech 330 W panels and have secured power sales at $0.084/kWh under Egypt’s FIT program.
Beyond Benban, ACWA Power’s 200 MW Kom Ombo project is nearing completion, with financing from entities such as the EBRD and the OPEC Fund. These developments underscore Egypt’s commitment to expanding its utility-scale PV capacity and diversifying its energy portfolio.
