1. Investment, Technology Transfer and Climate Change Case Study: Wind Power in Egypt Peter Wooders, Senior Economist Climate Change, Energy and Trade Mohamed ElSobki, Yasser Sherif (Environics, Egypt) 14 December 2009

2. Research Questions Egypt has all the necessary conditions for wind power –Excellent wind resource –Land with very low alternative value –Rapidly increasing electricity demand –Sites close enough to centres of population for grid expansion to not cost too much –Lots of donor interest and support Current share of electricity generation: 0.7% Why? What could be done differently?

3. Natural Gas has replaced oil in Egypt’s exports

4. Natural Gas now dominates electricity generation

5. Where the wind blows – Gulf of Suez, W. coast

6. Hurghada Turbines (Pilot Scheme, Red Sea)

7. Zafarana (Gulf of Suez, 85 MW, Denmark aid) http://www.folkecenter.net/gb/news/world/zafarana/

8. Development of Wind: Donor Led, now with CDM Firm plans for a further 280 MW at Zafarana

9. Egypt’s wind plans (Supreme Council of Energy, April 2007 ) From 2014 will all be private sector investment

10. Break-even Natural Gas cost for Wind Generation

11. Main Barrier: Price of Natural Gas to Generators Price to Egyptian power generators

12. New Electricity Law (before Parliament 2010) Articles 45-49 of Chapter 4, Section 1 –NREA (National Renewable Energy Agency) or EETC (Transmission Company) can issue competitive tenders for construction Electricity then sold to EETC May 2009 pre-qualification for 250 MW BOO (Suez) –Private developers will get 15 year PPAs –EETC responsible for grid connection –Special fund for purchasing renewable electricity Avoided gas/oil, donations, return on investments

13. 5 Necessary Conditions for the Large-Scale Implementation of Wind in Egypt 1.A clear statement of why Egypt wishes to support wind power 2.A clear statement of the strategy Egypt will follow to build up its wind capacity 3.Setting the tariff that wind power should receive, and how this may change over time 4.A plan identifying how investments in grid connections and strengthening will be realized 5.Identification of the role NREA and other state organizations will play, and how this can encourage private sector participation