MENA Energized: Regional Challenges to "Green the Power" Sector July 28, 2009

1. RCREEE/MED-EMIP Joint Event on Occasion of the Second IRENA Prep Conference
28 June, 2009, Sharm El Sheikh, Egypt
Renewable Energy and Energy Efficiency
“Present and Future Strategy in Egypt”
Nobuhiro Ikuro, Chief Representative in Egypt
Japan International Cooperation Agency (JICA)
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2. Contents
1.About JICA
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3. 1.About JICA
What is JICA ?
• Japanese governmental institution
• Providing the following three aid tools to
support the self-help efforts of the developing
countries to achieve sustainable growth and
poverty reduction:
»Technical Cooperation
»ODA Loans
»Grant Aid
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4. 1.About JICA
JICA’s Strategy
JICA’s Strategy for Egypt emphasizes the Following “4 Resources”
• Energy Resources
• Food Resources
• Environmental Resources
• Growth Resources
Renewable Energy (RE) and
Energy Efficiency (EE)
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5. Contents
2. Present Activities
in RE and EE in Egypt
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6. 2.Present Activities in RE and EE in Egypt
RE and EE Projects
Japan has been involved in all the Egyptian governmental important new and renewable
energy development plans. (Zafarana (wind), Kuraymat (solar thermal), and Gulf of El Zayt
(wind))
Cairo-Alexandria Total: 15 projects, JPY 113,154 mil (Around USD 1.1 bil) * Abou-Zaabal
Transmission System (on- Highlighted project: RE and EE projects Substation
(’88) 8,200m.
going)
(’03)5,011m.
Shoubra El Kheima
Damanhour Gas Thermal Power
Turbine Station
(’83)6,200m. (’81)4,862m.
(‘84)1,600m.
Power Generation Zafarana Wind Power
Plant Barge
(on-going)
(’85)12,700m.
(’03) 13,497m.
Rural
Electrification
Kuraymat Integrated Solar
In El Beheira
Governorate Combined Cycle Power I I
(’81)3,160m. (on-going)
(’08) 9,440m.
Assiout Substation
(’84)7,940m. Kuraymat Integrated Solar
Assout Thermal Combined Cycle Power I
Power Substation (on-going)
(’88)10,321m.
(’06) 10,665m.
Energy Control System Aswan II Hydroelectric
Upgrading in Upper Egypt Power Station
(on-going) (’82) 2,900m.
(’08) 10,768m.
Upper Egypt Regional
Control Center
(’84) 5,900m. 6

7. 2.Present Activities in RE and EE in Egypt
On-going Projects
Renewable Energy
Renewable Energy (Wind) (Solar thermal)
Zafarana Wind Power Plant Project Kuraymat Integrated Solar Combined Cycle
(120 MW) Power Plant Project (140 MW) (phase I)
Amount: 13,497 mil JPY (around 135mUSD) Amount: 10,665 mil JPY (around 107mUSD)
The world’s first large ODA project that UN approved The world’s first solar thermal and gas combined
as CDM project. JICA (the former JBIC) supported cycle power plant.
the documentations for NREA.
Kuraymat Integrated Solar Combined Cycle Energy Controlling System Upgrading
Power Plant Project (140 MW) (phase II) Project in Upper Egypt (*picture is image)
Amount: 9,440 mil JPY (around 94mUSD) Amount: 10,768 mil JPY (around 108mUSD)
Additional loan to treat with a price hike of Construction of middle and upper Egypt regional
materials. control center.
Renewable Energy Energy Efficiency
(Solar thermal)
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8. 2.Present Activities in RE and EE in Egypt
Projects under Formulation
Renewable Energy
Gulf of El Zayt Wind Power Plant Project (220 MW)
Project Appraisal is expected in mid July 2009. Nile Valley Gulf of El Zayt
Nile Valley Wind Power Plant (200 MW)
JICA is currently conducting a pre-feasibility Study.
Biofuel Development Plan
A study about opportunities of Biofuel Development in Egypt will start next month
Energy Efficiency
Energy Conservation Program for Egyptian Electricity Sector
Japanese experts will be dispatched to Egypt from July 2009 to formulate energy conservation
projects rapidly. Under the program, JICA will cooperate in introducing advanced technologies,
renewing outdated equipments and providing technical assistances to minimize losses.
Energy Conservation Program for Industry
JICA is working on formulating a project to promote utilization of energy saving equipment by different
industries. In addition, JICA will pursue the opportunity to support in the formulation of energy saving policy
and regulation.
Training Programs
JICA offers several seminars regarding energy conservation polices and techniques every year to Egyptian
officials
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9. Contents
3. Future Strategies
for RE and EE in Egypt
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10. 3.Future Strategies for RE and EE in Egypt
Channels
Governmental RE/EE
Projects
Private RE/EE
Projects
JICA policies are demand-driven. JICA will continuously work on tailoring its
assistance to best suite the needs of developing countries
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11. 3.Future Strategies for RE and EE in Egypt
Governmental RE/EE Projects
Government’s important roles are expected to continue in developing RE and EE. (ex. around 2900
MW out of 7200 MW planned wind energy will be invested by the government.)
JICA works on keeping its cooperation with public sector for promoting renewable energy
development. JICA integrated assistance combines soft loans with required technical assistance
Egyptian
Government <T/A examples>
Policy formulations
Technical Making laws and
Financing Assistance regulations
Making F/S
Transfer of advanced
technology operations
Renewable Energy (RE) Energy Efficiency (EE)
Solar power
Loss Reduction,
Smart Grid system
Wind Power
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12. 3.Future Strategies for RE and EE in Egypt
Japan’s Special initiative: Cool Earth Partnership
For Lower Middle Income Countries
Option Interest Repayme Grace Procureme
$ Rate (%) nt Period Period nt
10 billion General Standard 0.30 40 years 10 years Untied
Terms
Option 1 0.25 30 years 10 years Untied
Option 2 0.20 20 years 6 years Untied
Option 3 0.15 15 years 5 years Untied
STEP 0.10 40 years 10 years Tied
Cool Earth Partnership is the Japanese government’s international commitment
announced in 2008.
Target Area
• Energy Conservation, Renewable Energy Development, Climate Change Mitigation and etc.
Target Countries
• Emerging countries positively seeking to strike a balance between “GHG emissions reduction”
and Economic growth.”
• Cool Earth Initiative is so far applied for several MENA countries including: Egypt, Jordan, Syria,
Morocco, Yemen, Tunisia and Djibouti. There is a possibility to expand to other countries in the
future
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13. 3.Future Strategies for RE and EE in Egypt
Private RE/EE Projects (PPP)
JICA also supports accelerating private interventions in this sector. They are expected to play vital
roles in developing RE. (ex. around 4300 MW out of 7200 MW planned wind energy is expected to
be invested by the private sector.)
The following scheme can be considered.
Pattern 1: Pilot Investment
Private
Private
Private
JICA invests to new technologies as a
pilot. JICA’s assistance triggers private
investments.
Pilot Phase Expansion Phase
Pattern 2: Publicly Construct
and Privately Operated
Private
JICA assists constructing an
infrastructure and private investors
operate it.
Construction Phase Operation Phase 13

14. 3.Future Strategies for RE and EE in Egypt
Private RE/EE Projects (PPP) (2)
Pattern 3: Investment for
related facilities
Private JICA assists constructing an
infrastructure related to PPP projects to
enhance attractiveness of a PPP project
and to reduce private investment risks .
Transmission Line Wind farm
Future schemes to be examined
<Examples>
Lending
Lending
40% 60%
40% 60% Lending
Investment Investment
Lending
Investment
Private SPV
Private (Private)
Gap Viability Financing Gap Viability Fund Infrastructure Fund for PPP
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15. For more information on our assistance please
visit our website.
www.jica.go.jp
Thanks for your Attention
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