Egypt’s NREA, Denmark’s Vestas to ink 250MW wind farm deal

Egypt’s New and Renewable Energy Authority (NREA) and Denmark’s wind turbine manufacturer, Vestas will sign on Tuesday an agreement to implement a 250 MW wind power plant, according to sources.

The wind farm’s implementation is scheduled to take place within two years, the official sources said.

The current circumstances owing to the novel coronavirus (COVID-19) pandemic have delayed the contract’s signing. The delay has posed no problems, with the funding agencies and executing the firm’s involved well aware of the potential delays due to the current global health crisis.

NREA reviewed and approved the only offer submitted by Vestas for the wind farm tender. This follows Siemens Gamesa having previously refused to extend the validity of its own submitted offer that resulted in its exclusion.

German wind turbine manufacturer, Senvion had also submitted an offer but withdrew it owing to technical reasons.

Unlike Vestas, Siemens did not extend the validity of its bid for the tender, and as a result it was excluded from further consideration. This does not pose an obstacle to providing a financial offer and awarding the tender to the company committed to all procedures before the end of this year.

German Development Bank (KfW) will arrange a €260 million loan to the project, which will be constructed to a 250 MW capacity. The German loan is set to finance the project, and has been granted with the participation of a number of European parties.

The construction of renewable energy sources in Egypt come as part of the government’s electricity and renewable energy sector plan. It aims to bring the share of Egypt’s renewable energies to 20 percent of the national energy output by 2022, and to over 42 percent by 2035.

This will contribute to increasing the output of Egypt’s renewable resources to 6 GW, including hydropower and other projects currently underway.