The Egyptian government decided to replace the Oyoun Moussa coal-powered plant project by granting the UAE Al Nowais group two renewable energy projects, one of them is a 500 MW wind farm and the other is a 200 MW solar power project.
The Ministry of Electricity sent a letter to the Ministerial Economic Committee to prepare the necessary approvals for contracting the investor in accordance with the replacement decision. Sheikh Hussain Al Nowais was also informed of the decision by the Minister of Electricity, which comes in line with the interest of the state that has a capacity surplus of more than 20,000 MW.
The wind farm production tariff, according to the price previously provided by the UAE group, is expected to be $ 3.1 cents, that might increase according to the Orascom-Toyota-Engie additional phase tariff. The tariff for the solar energy will be according to the price of ACWA Power it provided for the Kom Ombo plant project, which is 2.75 US cents.
This replacement decision could be a step to cancel all coal projects in Egypt, most notably the Hamraween coal plant project, to reduce financial burdens and avoid adding new debts to the state.
