This image will be automatically disabled when it gets reported by several people.
Siemens presents new offer to produce 10GW from renewable energy Specialised committee formed to study project's technical and financial aspects: El-Sobky
Siemens presented an offer to the Ministry of Electricity to produce 10,000 megawatts (MW) of renewable energy with investments of € 10bn. A specialised committee was formed to study the offer's technical, technological, and financial aspects, Chairman of the New and Renewable Energy Authority (NREA) Mohamed Salah El Sobky said. Siemens' offer includes financial facilitations and advanced technological methods, he said. The Ministry of Electricity had signed a contract with Siemens to produce 2,000MW at the cost of €2bn. The company will also establish a factory to manufacture wind turbine blades through self-financing with investments worth €100m. El-Sobky said that Siemens began implementing the first phase of the projects with a capacity estimated at 180MW. NREA did not pay any amount to Siemens yet since the closure agreement with banks to fund the projects was not finalised. When banks provide the required loans; purchasing contracts will be signed with Siemens to buy the energy produced from the projects. Siemens will implement the project using the APC+ Finance system, which requires that the German company must provide necessary financing while the NREA, as the project's owner, must repay the value of the loans through which the financing occurs. The EPC + Finance system was introduced by the Ministry of Electricity in a number of projects and is adopted in several countries. Siemens acquired land in Ain Sokhna to establish a factory to manufacture rotor blades for wind turbines to supply the expected projects with turbines. Siemens will provide funding for the factory's establishment. The ministry will approve the offer if it includes establishing a factory to produce components, which will support domestic production, according to former head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) Hafez Salmawy. "If the offer only consists of establishing power plants, it will not be advantageous," Salmawy said and that competition between companies stimulates the market and introduces investment opportunities. Siemens is known for its low prices and is a strategic partner for Egypt in energy projects.
