Government mandates high consumption factories to use renewable energy to meet half their needs

Government mandates high consumption factories to use renewable energy to meet half their needs

High energy consuming factories will now be required to meet a portion of their needs using solar and wind power (AFP Photo)

High energy consuming factories will now be required to meet a portion of their needs using solar and wind power
(AFP Photo)

By Salih Al-Manufi

High energy consuming factories will now be required to meet a portion of their needs using solar and wind power. This decision came during a meeting held Sunday by the High Energy Committee, attended by Prime Minister Hazem al-Beblawi.

Ahmed Imam, Minister of Electricity and Energy, stated that the decision will seek to have high energy consuming factories meet 50% of their needs using new and renewable energy sources, specifically wind energy factories funded through the private sector, capable of producing 970 megawatts of energy.

The Ministry further stated that it hoped that by 2020, 20% of Egypt’s energy needs would be met through renewable sources. Imam stated that operating permits would only be granted to high consumption factories on the condition that they meet the specified portion of their needs using new and renewable energy sources. Prices of kilowatts per hour will be determined by the Egyptian Electric Utility and Consumer Protection Regulatory Agency. The decision is expected to take effect by the beginning of 2015.

He added that the Ministry soon planned on releasing 6 projects to produce electricity via independent power producing (IPP) wind farms capable of producing 600 megawatts. The project would be funded using private sector investment. He stated that the Committee’s recent decision made Sunday, requiring that high consumption factories use new and renewable energy sources, will lead businessmen to invest further in the sector. He stated that already more than 40 international and domestic investors have expressed their interest in the tenders for the six wind energy projects, each one capable of producing 100 megawatts of energy. The projects will be implemented in the Gulf of Suez region.

Meanwhile, Gaber Desuoki, Chairman of the Egyptian Electric Holding Company, stated that industrial products are to obtain their energy at set costs specified in Cabinet decision 11/11/37 passed in 2011, whose application was set to begin in January 2011. High consumption factories will obtain their energy at such prices, particularly during peak hours, which begin at sunset and last for four hours. Industrial activity in Egypt is set to be split into three categories, the first consisting of high energy consuming factories, which include those producing iron, cement, fertilizer, copper, and petrochemicals. Such factories will obtain energy at 27 piastres per kilowatt outside of peak hours, with this price increasing to 41piastres during peak hours. Ultra voltage prices outside of peak hours are set at 3 piastres per kilowatt, with those during peak hours increasing to 45 piastres. The second group includes factories producing flat glass, ceramics, and porcelain, at a price of 25 piastres per kilowatt for Ultra Voltage, and 28 piastres for mid-ranged voltage. The third group includes all other industries, with prices set at 15 piastres per kilowatt for Ultra Voltage and 18 piastres for high voltage.

Translated from Al Borsa newspaper

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