Yerevan Sep. 2015

Energy overview at Arab Region

And Egypt Experience in Sustainable Energy

Eng / Ahmed Mahina Undersecretary of State

contents

• Energy in Arab Region. • Arab Region Challenges • Egypt Experience:

– Current Status. – Future Plans. – Egypt supporting role regarding the initiative.

No. of countries: 22

Area of the countries: 13. 3 million Km2.

Population: about 370 million

Language: Arabic.

3

Arab Region

• Sharing of world production for Crude Oil & Natural Gas in 2013 is 17.2%.

• The proven reserves of Crude Oil & Natural Gas represent 55.8% & 27% of the world proven reserves in 2013.

• The region is considered as the poorest area in the world regarding Coal reserves.

• Energy resources are unequally distributed amongst Arab Countries and in most cases used in unsustainable way.

Combined Cycle 18.7 %

Crude Oil & Natural Gas 94%

Renewable 1 %

Hydro 3 % Coal

2%

2014

Diversifying Energy Resources in Generation

Chart1

Crade Oil & Natural Gas

Hydro Power

Coal

Renewable

94

3

2

1

Sheet1

Crade Oil & Natural GasHydro PowerCoalRenewable

94321

2014 kwh/year

Electricity Share per Capita

Chart1

Jordan

UAE

Bahrain

Tunisia

Algeria

Saudi Arabia

Sudan

Syria

Iraq

Oman

Palestine

Qatar

Kuwait

Lebanon

Libya

Egypt

Morocco

Yemen

2800

11900

12200

1000

1400

10000

200

1000

2800

7000

1000

16200

15900

2300

2100

1950

900

100

Sheet1

JordanUAEBahrainTunisiaAlgeriaSaudi ArabiaSudanSyriaIraqOmanPalestineQatarKuwaitLebanonLibyaEgyptMoroccoYemen

28001190012200100014001000020010002800700010001620015900230021001950900100

To resize chart data range, drag lower left corner of range.

Combined Cycle 18.7 %

Combined Cycle 18.7 %

Gulf Arab Countries

Eastern Arab countries

Europe

Western Arab countries

African Countries

Turkey Spain

Morocco Tunisia

Algeria

EGYPT Libya

Jordan

Syria Lebanon Iraq

Bahrain

Qatar

Kuwait

Sudan

Oman

Saudi Arabia

Emirates Ethiopia

In operation Under preparation

120 MW

450 MW

3000 MW

3200 MW

2000 MW 200 MW

• Total primary energy consumption has steadily increased over the last decade (2001 – 2010) at an average rate of 6.3%.

• Direct and Indirect subsidies represent in 2011 around 2.5% to over 15% of GDP.

• The access of Electricity still insufficient (varying from 31 to 99%) .

• Technology transfer for RE & EE industries.

• The high rates of energy losses and weakness of electrical interconnection grids.

• Lack of public awareness of the EE importance.

Egypt Experience

Utilization of all available resources.

Promoting utilization of renewable energy.

Promoting electricity interconnection.

Improving energy Efficiency through adopting Energy Efficiency strategies.

Environment protection through adopting necessary measures on the supply and demand side.

Future planning to face the increasing demand.

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On February 2008, the Supreme Energy Council approved the Egyptian Renewable Energy National Strategy to Satisfy 20% of the generated electricity by 2020 using renewable energies, with private sector participation of 67%.

For Solar Energy: On July 2012 the Cabinet approved the Egyptian Solar Plan which includes adding 3500 MW (2800 MW CSP, 700 MW PV) of Solar Energy by 2027.

Currently the strategy is being updated through the cooperation with EU in the framework of Energy Sector Policy Support Program(ESPSP) up to 2035.

Installed capacity from hydro is 2843 MW Hydro power represents 9% from the generated

electrical energy.

Currently, Assuit Hydro Power Project with 32 MW is under implementation and it is planned to be operated by 2017

Source: www.windatlas.dk Countries have National Wind Atlas Countries have Wind Atlas in some regions Countries don’t have Wind Atlas

Egypt is one of 38 countries in

the world that published a

National Wind Atlas

Egypt enjoys an excellent wind regime,

particularly along the Suez Gulf where the

average wind speed reaches about 10.5 m/sec.

Installed capacity : 750 MW

Generated Energy 9.9 Billion KWh

fuel savings 2.1 mtoe

CO2 reductions 5.4 million ton

(till June 30th 2013)

The Solar Atlas was issued, and indicated that Egypt is considered as one of the sun belt countries where it is endowed with high intensity of direct solar radiation ranging between 2000 – 3200 kWh/m2/year from North to South.

The sun shine duration ranges between 9-11 hr/day from North to South, with very few cloudy days.

140 MW Solar thermal power plant at kuraymat The 1st CSP plant is 140 MW including solar field of 20 MW The total investment is about 340 millions US$ . The project started operation commercially in July 2011.

Solar Thermal Electricity Generation

Solar Photovoltaic Systems

• The Total Installed Capacity of PV Systems in Egypt is more than 40 MW for different purposes (remote areas, governmental buildings, ….).

• The Cabinet has approved a decree to disseminate the initiative to include 1000 governemental building.

• the Governorers Council has approved to utilize the Solar Energy in streets and public buildings lighting.

Energy Efficiency

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In November 2012 the National Energy Efficiency Action Plan (NEEAP) of Electricity Sector (2012 - 2015) has been issued aiming to reach Energy Efficiency Improvement up to 5% compared to the last five years electricity consumption using some procedures in the residential, governmental and tourism sectors.

The NEEAP has been prepared following the guidelines framework for Energy Efficiency Improvement issued by the League of Arab States guided by the EU Directive EC/32/2006.

The plan included procedures that should be performed till 2015 by MOEE in certain sectors: Residential sector. Public Utilities and Energy Efficiency in

Governmental Entities. Tourism sector. In addition to some supportive measures.

On the Supply Side: Optimizing the share of the combined cycle power plants.

Usage of super critical steam technology.

Conversion of old thermal power plants to work in dual firing system.

Improve power plants efficiency and rehabilitation and renewal of transmission and distribution networks to reduce electrical losses .

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In the residential sector Around 12 million CFL lamps were distributed with

half price and 18 months guarantee. Another initiative for distribution 13 millions LED

lamps has been announced (until now, 5 millions LED lamp have been distributed).

In street lighting sector: More than 533 thousand efficient lamps were installed to replace conventional lamps. Currently, a new project is under implementation to replace 4.5 million lamps with more efficient ones.

On the demand side:

27

Other programs: Energy conservation measures (mainly efficient

lighting and power factor correction) in many administrative buildings.

Labeling and standards program for home appliances.

Energy efficiency codes for residential, commercial and public buildings. Energy label for refrigerator

Improved by 5.4% to reach 208.1 gm/kWh

Improved by 21.1% to reach 11.02%

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Improved to reach 0.54 kg/kWh

A new electricity law has been issued in July 2015 to reflect the ongoing market reform and will establish a gradually liberalized electricity market regulated by Egypt ERA. Main features of the new law • Establishment of competitive electricity market. • Establishment of Transmission System Operator (TSO) • Encouraging private sector contribution in generation and

distribution. • Supporting renewable energies, cogeneration and power

generated from secondary resources • Supporting energy efficiency and demand side management.

The New Electricity Law

In Sep. 2014, The Cabinet has approved the Feed-in Tariff system for PV & wind farm with capacity less than 50 M.W.

the Regulatory Agency (Egypt ERA) has finalized the regulation rules.

FIT aims at reaching 2300 MW (PV) (2000 M.W. by investors + 300 M.W. for residential rooftop) and 2000 MW (wind).

A central unit for FIT(On stop Shop) has been established to provide the necessary support for the investors

Feed-in Tariff

Restructure of Electricity Tariff • The Cabinet has approved a five years plan for tariff reform to

be completed in 2018/2019 by which subsidy will be fully lifted.

• The plan was announced in the first of July 2014.

• The plan was applied for 2014 and 2015.

• This reform program is not targeting renewable energy

basically, but renewable energy will benefit from it, as it will be

competitive with traditional energies.

Medium Term Plan(2012-2017)

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Governmental Projects : 20150 MW. Private Sector Projects (BOO) : 2250 MW

Thermal Power Plants

Renewable Energy Power Plants

Governmental Projects : 3412 MW. Private Sector Projects : 2170 (BOO : 1450 MW) , (IPP : 720 MW).

Additional plan to implement 4300 MW. (Wind - Solar) with the scheme of Feed In Tariff.

In the generation sector:

34

In the transmission and distribution sector: •Expanding the Transmission grid to accommodate the new generation capacities. • upgrading the distribution grid to be smart one and replacing existing meters with smart meters .

Long Term Plan • Currently, the energy strategy is under reviewing to be presented to the Cabinet in order to be approved in the next few months.

• The new strategy includes the following directives: o Diversifying the energy mix. o Increasing the share of Renewable Energy. o Introducing of Coal and Nuclear Energy. o Maximizing the Energy Efficiency share. o Minimizing the Energy Subsidies.

• Providing Technical support in field of Rural Electrification. • Capacity building and experience exchange through specialized

training centers. • Conducting studies to exploit the available renewable energy

resources in the Arabian and African countries. • Cooperation in lighting the far-away regions and villages with

PV cells. • Executing projects in the fields of electric interconnection , RE

projects , EE programs.

Egypt supporting role regarding the(SE4ALL) initiative

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