The Egyptian New and Renewable Energy Authority (NREA) prepared a tender to construct a new solar power plant in Hurghada with a capacity of 20 MW. The Japan International Cooperation Agency’s (JICA) offered to fund the project, reported Daily News Egypt.
A source at the Ministry of Electricity told Al Borsa News that the project will be funded through a soft loan of $90m. The JICA has verified project’s feasibility, based on which it has issued a $1.5m allotment to set up equipment needed to measure the solar radiation at the location.
The project is part of the Electricity Ministry power plan for 2012-2017. This will be the fifth solar plant in Egypt, after Kuraymat with a capacity of 20 MW, two Kom Ombo facilities with a joint capacity of 220 MW, and the exiting Hurghada plant, which produces 20 MW of energy.
NREA will soon present the proposal to the Egyptian House of Representatives for approval.
Egypt aims to further collaborate with JICA. A delegation from the Egyptian Electricity Holding Company and the Ministry of Environmental Affairs visited Tokyo recently to capitalize on the agency’s experience with generating power using coal.
Egypt’s Ministry of Electricity seeks to produce 20% of electricity from new and renewable resources by 2020 through bids, direct contracting system and the feed-in tariff projects with a goal to generate as much as 4,200 MW of power for a total investment of up to $7.5b.