AFD has allocated EUR 50m of financing to the public power transmission operator in Egypt to finance the construction and equipment of a power grid control center in order to improve the efficiency of supply.
Context
Egypt is the country with the second largest power generation capacity in Africa, with an installed capacity of 32 GW. In 2014, the Government set out to address the multifactor energy crisis faced by the country in recent years by launching a comprehensive reform of the energy sector based on 3 pillars:
- ensure the security of supply
- strengthen sustainability
- improve governance.
In this context, several new generation units, which will double the capacity of available electricity by 2020, will be commissioned. They will include a significant proportion of renewable energies, which are expected to reach over 20% of the energy mix by this time. The Egyptian Electricity Transmission Company (EETC) is supporting this reform by implementing an investment plan to upgrade the power grid and connect new generation units, especially for renewable energies. It is also conducting a restructuring in order to become an independent power transmission grid manager.
Description
The project is part of the strategy to upgrade and improve the performance of the power grid. The project comprises:
- the construction and equipment of the new control center for the medium-voltage power grid in the Delta region in the city of Talkha,
- financing for technical assistance to the contracting authority for project management
- and financing for a feasibility study for the renovation of the Alexandria control center.
The project for the Delta control center mainly aims to automate the management of the grid, which comprises 66 kV substations. It will be implemented in the context of two “turnkey” contracts dedicated to the construction of the building to house the control center, the implementation of the infrastructure and SCADA software solution, and the installation of the telecommunications infrastructure, including the laying of fiber optic cables and remote control units for the substations.
Impacts
The project contributes to the two priority objectives of AFD’s actions in Egypt by improving living conditions for populations and supporting sustainable growth in the productive sector. The expected impacts are:
- An improvement in service quality by reducing the frequency and duration of power cuts and reducing the repair time, benefiting 13 million people in the Delta region.
- A reduction of grid losses bringing about economic gains and reducing annual carbon emissions by 37,000 tons of CO2.
01/04/2016
Project start date
Financing tool
50 000 000
EUR
Egyptian State
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on the same region
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on the same financial tool
