Egypt signs agreements to add more than 11 GW of new power capacity

The government of Egypt has signed three major agrements with energy companies and turbine suppliers to add 11 GW of new power capacity, under the Egyptian Power Boost Program, which aims to strengthen Egypt's installed power capacity with new gas or diesel-fired flexible units. The agreement includes 7 GW of gas-fired capacity and 4 GW of renewable projects.

The government has signed an agreement with GE under the terms of which GE will deliver a total of 46 gas turbines (34 aeroderivative gas turbines and 12 heavy-duty gas turbines) with a combined capacity of 2,683 MW as of May 2015. The additional power is expected to start to deliver power in May 2015, in time to help meet the soaring demand for electricity during the summer months.

Moreover, the government has signed firm agreements with Siemens to build a 4.4 GW CCGT power plant and to install wind power capacity of 2 GW. Under the terms of the agreement, Siemens will be the EPC contractor for the 4.4 GW Beni Suef power plant in Upper Egypt, which will be built in four modules, each consisting of two H-class gas turbines, two heat recovery steam generators, one steam turbine, and three generators. New wind capacities will be installed in the Gulf of Suez and the Nile Valley. Siemens will also install a rotor blade manufacture in Egypt.

Finally, the Egyptian Electricity Holding Company (EEHC) has signed a non-binding Memorandum of Understanding with Masdar and ACWA Power International to develop up to 2 GW of renewable projects, including 1.5 GW of solar projects and a 500 MW wind park. The companies would develop a 200 MW solar PV plant in a first stage. The agreement could lead to another contract, for the development of a 2.2 GW CCGT power plant.

Since 2000, Egypt's electricity demand has been increasing by an average 6.2%/year, requiring additional capacities.