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Posted On: 20/11/2011
The Egyptian government is showing its commitment to wind energy with a tender for a 1,000 megawatt wind farm, as it has ambitious plans for renewable energy sources. Bidding for the contract is already underway and it's hoped the farm could be online by 2016, as the contract will be awarded before the end of the year.
This tender is one of several wind energy projects as it is hoped that this energy source will provide a total of 7,200 MW by the end of the decade. At the moment the country generates just 550 MW through wind.
The Egyptian government isn't just targeting wind energy, as it hopes the combination of thermal, solar and wind energy will be enough to cover 20% of all domestic electricity demands by 2020, with wind turbines accounting for 12% of this renewable energy.
According to the secretary general of the World Wind Energy Association, conditions in Egypt are some of the best in the world.
At the moment the wind farms are all state-owned, but there are plans to introduce private ownership. It's expected that 33% of the additional capacity will continue to be owned by the government while the remaining capacity will be generated through private companies.
However private investment into wind energy is likely to be dependent upon the introduction of a feed in tariff. This tariff reimburses producers for any costs of production not covered by electricity prices, and is the standard amongst most countries which generate wind or solar power, and it is expected this feed in tariff will come on line next year.
Wind energy is important for Egypt, as it will not only help to diversify energy sources but will also create thousands of new jobs.
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