Egypt’s Ministry of Electricity has finalized the contract that legally binds GDF Suez, Toyota, and Orascom together to start inaugurating a wind power plant project in the Gulf of Suez area, Daily News Egypt reported. The project will have the capacity of 250 MW and the establishing plans are set to begin in June 2016.
A senior official stated that the ministry had come to a 25-year agreement with its three peers financing the project to purchase the energy produced from the plant at 4.7 cents / kW. The ministry will consider this price as an overall figure for any further negotiations in any other tenders.
This is not the only agreement that the Ministry has been working on lately. There are other offers that are currently being analyzed by the ministry.
According to Al Bawaba, one of these offers is from Lekela, a partnership company between Actis and Mainstream Renewable Power, two major companies in the renewable energy sector. Their offer concerns constructing a wind plant with the capacity of 250 MW in Suez. According to Lekela’s project portfolio on their website, this will be the company’s third project that is expected to be constructed on the Egyptian soil in 2016.
By 2020, the Ministry is set to produce 20% of both the new and renewable energy of the total national electricity grid. This is part of the ministry’s plan to increase the sources of energy production and to enhance the overall sustainability performance.