Egypt's Ministry of Electricity completed the final contract with the consortium of GDF Suez, Toyota, and Orascom to establish a wind power plant project with a capacity of 250 MW in the Gulf of Suez next month.
The ministry agreed with the triple alliance to purchase energy produced from the plant, according to a senior officer at the ministry. It was also agreed that bird migration patterns would be studied and the financial guarantee by the Ministry of Finance will be settled within weeks.
The senior official told Daily News Egypt that the GDF Suez, Toyota, and Orascom alliance will fund the project. The Ministry of Electricity will buy energy produced from the station for 25 years at a price that was agreed upon in accordance with the offer made in the tender. Furthermore, the ministry will sell the energy produced to the distribution companies.
He further explained that the alliance contracted to buy the produced at 4.7 cents per kilowatt. The ministry set this price as the overall figure for negotiation in any other tender.
The ministry will also discuss the offer of Lekela Power-Actis to create a wind plant in Suez with capacity of 250 MW. It will also discuss the offer of Italgen S.P.A to set up a wind plant with a capacity of 320 MW, after the completion of the contract with the GDF Suez, Toyota, and Orascom alliance.
Lekela Power-Actis offered to establish a wind plant in the Gulf of Suez, during Al-Sisi’s visit to London last November, after negotiations stalled for the tender.
The Ministry of Electricity and Renewable Energy had begun negotiations with the alliance after faltering the final agreement with Lekela Power-Actis which presented the lowest prices. Lekela Power-Actis did not complete the procedures and requirements announced by the ministry.
The ministry seeks to produce 20% of new and renewable energy of the total national electricity grid by 2020, as part of the ministry’s plan to diversify its sources of energy production and sustainable development in the sector.
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