The Arab Industrialization Organization (AOI), is backing Egyptian government ambition to build solar power plants in seven African countries, in an initiative to reduce the energy deficit on the continent. The North African country says it wants to support the rest of the continent in its efforts to develop renewable energies and reduce energy shortages.

The initial plan is to launch solar power plants in Uganda, Congo, Tanzania, Eritrea, Somalia and Southern Sudan, with capacities ranging from 2 to 4 megawatts (MW). The solar power plants will be used for lighting and desalination of drinking water in the target countries. They will also benefit from a grant from the Egyptian government, worth a total of $12 million.

Egypt, which has set new records in solar energy since 2017, will materialise this commitment through the Arab Industrialization Organization (AOI), an online report said yesterday.

AOI is a state structure that employs about 19,000 people, including 1,250 engineers, in the manufacture of military and civil materials. The design, financing, construction and operation of the plants will be carried out by the AOI.

As Egypt promotes solar energy in the rest of Africa, the country is setting itself up as a model. In the wake of its many solar projects, the Benban photovoltaic park is in pole position. The construction site, located near the city of Aswan in southeastern Egypt, is described as the largest solar power plant in the world. In the long term, the fleet should produce between 1.6 gigawatts and 2 gigawatts (GW) of electricity from 100% renewable sources; enough to supply 350,000 households.

Egypt is recorded as having made considerable progress in the field of renewable energy. In 2017, the country moved up 23 places in Bloomberg’s annual Climatescope ranking, and ranked 19th out of 71 countries surveyed. According to the same ranking, Egypt is the second-fastest-growing country in the renewable energy sector.

By 2022, the Egyptian authorities plan to produce 20% of the country’s electricity from renewable energy sources.

 …Receives proposal for 107 MW of solar energy plant

  …Enters pact to import power from Eskom.

Zimbabwe Energy Regulatory Authority (ZERA) has received a solar project proposal from Power Ventures for the building of a 107 MW photovoltaic solar power plant in Hwange in western Zimbabwe. The independent power company also proposes to connect this solar power plant with an 88 kV transmission line 75 km long.

Also in the bid to overcome raging nationwide power crisis, an agreement was reached last week, allowing the country to access 400MW of electricity per week from Eskom. Zimbabwe is facing an 800MW power deficit and was unable to close that gap as it owed huge debts to Eskom and could not access further supplies, local media reports said yesterday

Observers said electricity supply in Zimbabwe has improved significantly following the southern African country’s agreement with Eskom. This has resulted in Zesa Holdings downgrading load shedding from Stage 2 to Stage 1. The report further explained that power will now only be cut off during peak hours of 5am to 10am and 5pm to 10pm.

Zesa spokesperson, Fullard Gwasira, was quoted by the government local media saying the new development will not result in load-shedding disappearing completely, but will mean it can be downgraded to Stage One.

“This power supply situation gives predictability to load-shedding and largely puts all customers in Stage 1 load-shedding. So there is significant relief, but it does not eliminate load- shedding,” he said. Meanwhile, ZESA has embarked on a blitz to identify and disconnect illegal connections in the country’s major cities.

Electricity from the 107 MW photovoltaic solar power plant in Hwange would be fed into the grid from a 32 kV substation that already exists in the Hwange district. The energy produced by the Hwange solar power plant would be sold to Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the company that provides the public electricity service.

In a report yesterday, Afrik21 said Power Ventures would like to start the project directly after the opinion of the ZERA. The company also indicates that the project should create 1,000 jobs by the end of 2019. “It gives rise to hope in a country where people are subjected to hours of power cuts every day. In reality, the state-owned company ZETDC is forced to rationalise electricity consumption because of a deficit in production,” the report said, adding that the country has several coal-fired power plants, but they “are in urgent need of renovation”.

The ZETDC relies mainly on the Kariba hydroelectric power plant, which provides about 750 MW of electricity from the Zambezi River. “The problem is that the river’s flow is declining more and more with the drought that has been plaguing southern and eastern Africa for some time. But Zimbabwe has a viable alternative: solar energy. And PPIs are already knocking on Zimbabwe’s doors to exploit this inexhaustible source of electricity,” Afrik21 stated

It said that in fact, ZETDC is yet to publish its opinion on the solar projects proposed by Guarantee Risk Solar and Bushveld Energy (eXcess Africa). These IPPs want to build three 250 MW solar power plants in Goromonzi, Bulawayo and Harare. To do so, they will have to invest $400 million, said the report.

  …Project to deliver 250MW, clean reliable power

Renowned renewable power generation company that delivers utility-scale projects across Africa, Lekela has successfully reached financial close on its first wind project in Egypt with West Bakr Wind. Construction will be begin shortly on the project that will deliver 250MW of clean, reliable power at a highly competitive price, the company said yesterday.

Located 30 kilometres north-west of Ras Ghareb, West Bakr Wind is part of the government’s build, own, operate (BOO) scheme. The project will increase Egypt’s wind energy capacity by 14%, as the country strives to meet its target of generating 20% of its electricity from renewable sources by 2022

This includes a 67% partnership with the private sector. The project will also reduce more than 550,000 tonnes of carbon dioxide emissions per year. According to a report posted on the company’s website, when the project becomes fully operational in 2021, it will produce over 1,000GWh per year and power more than 350,000 homes

West Bakr Wind is joining Lekela’s portfolio of wind projects across Senegal, Ghana and South Africa. In total, over 1,000MW is now in operation or construction, the report said. “This is a major milestone, not just for Lekela and its partners, but also for Egypt and its clean energy strategy. We are proud to play a part in supporting the diversification of Egypt’s generation capacity by delivering best-in-class clean energy projects.

“As our first project in Egypt, we have enjoyed working closely with partners and stakeholders, including the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority, to get to this point. We see great opportunity to invest in wind energy in Egypt, and we look forward to working in the country for years to come,” Chief Executive Officer at Lekela, Chris Antonopoulos, said

As part of Lekela’s strategy to create long-term value for the communities in which it operates, the project has developed a Community Investment Plan focusing on enterprise, education and environment initiatives. Local employment opportunities will be created alongside skills development and training to improve future employment prospects. During peak construction, the project will employ up to 550 people.

It said that West Bakr Wind is on an important bird migration path, so Lekela is working closely with authorities to ensure that wildlife is protected. The company is participating in a “shut down on demand” programme, meaning that when birds are detected the turbines are able to be stopped.

On the other hand, Lekela has also signed a protocol with the Egyptian Environmental Affairs Agency and its Migratory Soaring Birds project to contribute towards the funding and implementation of the Migratory Birds Monitoring training programme. As a long-term owner-operator, Lekela has a growing team in Egypt who will be responsible for taking this project, as well as other future ones in the country, from construction into operation.

Antonopoulos added, “As a long-term operator with a long-term outlook, we are focused on delivering lasting impact. It is not enough to just invest money, which is why we focus on creating generation-spanning benefits for local communities. West Bakr Wind is the latest milestone in our plan to achieve this.”

Egyptian Electricity Transmission Company chairman, Sabah Mashaly, added, “This agreement is an important step and an integral part of our ambitious new and renewable energy strategy – to generate 20% of our energy capacity from renewable energy by 2022. This also comes within the framework of the legislation provided by the Egyptian Government with all the involved authorities to facilitate the work of all investors in the energy sector.”

The Power Purchase Agreement, Network Connection Contract with the Egyptian Electricity Transmission Company (EETC) and Usufruct Agreement were all signed in February 2019, shortly after the project received cabinet approval. Financing has been provided by the Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, the International Finance Corporation (IFC), a member of the World Bank Group and the European Bank for Reconstruction and Development (EBRD).

Siemens Gamesa Renewable Energy will install 96 of their SG 2.6-114 turbines through a turnkey EPC contract and will provide long term maintenance services through a 15-year Long Term Services Agreement.

The Export-Import Bank of China and Export-Import Bank of India Zimbabwe have syndicated three separate loans of just over US$108.3 million for Zimbabwe to use for power generation projects and broadband expansion.

The Herald reported yesterday that the Zimbabwean government tied a loan agreement with the Export-Import Bank of China of ¥465 050 000 (US$65 852 350) on June 26, while the Exim-Import Bank of India released two loans of US$23 million and US$19,5 million.

Quoting an extraordinary government gazette published last Friday, the report said the Minister of Finance and Economic Development, Professor Mthuli Ncube concluded the loan agreements on behalf of Zimbabwe on April 4, 2019.

The Chinese loan has a 20-year tenure at an interest rate of 2% per annum and a management fee of 0.25% on the outstanding principal amount. “The loan will be utilised for the purpose of expanding the Zimbabwe NetOne National Mobile Broadband Expansion Project,” said government. A copy of the loan agreement will be available for inspection at the Ministry of Finance and Economic Development offices in Harare.

The Export-Import Bank of India provided a US$23 million line of credit, which also has a tenure of 20 years, with a grace period of five years at an interest rate of 1.75% per annum. It also has a commitment fee at the rate of 0.5% on outstanding principal amount. A management fee shall be payable once off at the rate 0.5%.

Government further said the loan will be utilised for “financing renovation and upgrading of the Bulawayo Thermal Power Plant”. Also, the Export-Import Bank of India released a US$19.5 million, which will be used to finance Phase II of Deka Pumping Station and River Intake System.

The loan is for 20 years with a grace period of five years. It has an interest rate of 1.75% per annum, and a commitment fee at a rate of 0.5% on the outstanding principal amount. A management fee shall be payable once off at the rate of 0.5%, the reports said.

The Indian loans are expected to improve the country’s power situation which is presently precarious, although government has been running around to normalise the situation. Declining water levels in Lake Kariba are said to have plunged most parts of the country into darkness for longer periods per day.

There are fears that if the water levels continue to decline in Lake Kariba, power generation could stop by early October, which will almost complicate the situation. Last Friday, Kariba Hydropower Station was generating 164MW, against an installed capacity of 1 050MW.

Hwange Thermal Power Station was producing 469MW, and Harare and Munyati 15MW each. This means the country was generating 663MW against a national demand of 1 700MW.

The North African country, Egypt has reached installed capacity of 55,000 Megawatts of electricity per day. The figure is about 3,000MW higher than what South Africa produces, going by Egypt’s own official figures.  

Experts say however that in terms of infrastructure in Africa, megawatt capacity doesn’t always translate to actual delivery. “Starting from 2014 up till the end of 2018, the total capacity added to the network was 25,426 Megawatts”, Africa Oil + Gas Report quoted Mohammed Shaker, Egypt’s Minister of Electricity and Renewable Energy yesterday.

He explained that the 25,426MW was approximately the maximum load the country could supply during 2014, which means they have already doubled what they had at that time.

The report said South Africa doesn’t have that kind of story to tell, as the state power utility grapples with a debt load of about $30Billion, borrowing money on short-term contracts to help it meet its commitments to its long-term loans. But whereas Eskom is a clear corporate entity, it is difficult to differentiate the Egyptian Electricity Holding company from the Egyptian state itself.

“The installed capacity in Egypt is almost exceeding 55 Gigawatts although our consumption is less than that, but we are trying to depend on the operations of high-efficiency generators, combined cycle and because of these, we could manage to reduce the consumption of fuel to a great extent and this will be reflected on the cost of tariff”, says the minister, a former Professor of Electrical Power Engineering at the Cairo University.

“Almost 60-65% of the cost of tariff is as a result of the fuel, if we have savings in fuel consumption, it makes a difference for the costing of electricity”, he said

Nigeria’s first-ever hybrid solar power plant was commissioned at the Alex Ekwueme Federal University, Ebonyi state. The plant with a capacity of 2.8 MW, was built as part of the Energising Education Programme (EEP).

It is the first of its kind in the country and will be powered by solar panels supported by diesel-powered electric generators. The system will provide electrical power to the 7700 students and 1,819 members of the university’s administration.

The director of the Rural Electrification Agency, Damilola Ogunbiyi, said the installation of this plant could have a positive impact on the quality of academic results. In an interview with the local press at the inauguration ceremony, he assured that “this programme will undoubtedly improve the quality of education, research and health services in Nigeria’s universities and teaching hospitals”.

The hybrid plant has a significant environmental impact, as it will allow the 1.54 MW gasoline and diesel generators that used to supply electricity to be disconnected.

The hybrid power plant was built as part of the Energising Education Programme (EEP). The initiative was set up by the Nigerian federal government in collaboration with the Rural Electrification Agency and the National Universities Commission (NUC).

The installation itself was carried out by Sterling and Wilson, a local company specialising in the supply of energy solutions.

This programme will equip 37 federal universities and seven university hospitals with autonomous power generation units. It will also involve the rehabilitation of existing infrastructure.

Above all, the project involves related aspects such as the installation of solar streetlights on some 7.5 km of road to guarantee safety, as well as the opening of a world-class renewable energy training centre.