Electricity ministry works on improving efficiency of power stations

Electricity Minister Mohamed Shaker said efforts are underway to upgrade the efficiency of already existing power stations.

During President Abdel Fattah Sisi's inauguration of the new Assiut power station on Tuesday, he said the ministry is keen on ensuring the high efficiency of new power stations.

He noted that the new power stations for which the ministry contracted with Siemens, the ministry made sure that their efficiency exceeds 60%.

The ministry's five-pronged strategy focuses on securing needed power resources, improving efficiency of electric mechanisms, developing the institutional mechanism and governance of electricity companies, creating competitive market for electricity with a number of rules and reducing greenhouse gas emissions, he said. 
The 1,000 megawatt new Assiut station operates under a simple circuit system, the electricity minister said.

He added that steam turbines will be installed to the station to up its capacity to 1,500 megawatts.

Mohamed Shaker noted that there is an intensified campaign to spread awareness about the importance of reducing electricity consumption.

He noted that the use of LED lamps has become widespread and this would lead to reducing power consumption. 
The electricity Ministry seeks to diversify its energy resources as the ministry was depending on natural gas and oil derivatives for operating power station, but when the natural gas supply crisis surfaced, the ministry worked on finding other options, the minister said.

Mohamed Shaker noted that the ministry seeks to produce electricity through new and renewable energy, noting that the ministry is coordinating with the environment ministry to produce electricity from wastes.

As for power linkage with neighboring countries, he said a 3,000 megawatt power linkage with Saudi Arabia will operate by the end of 2018.

There is a 450 megawatt power linkage with Jordan, he said, noting that there is also a power grid with Syria and Lebanon.

He added that there is a 200 megawatt power linkage with Libya. 
The Electricity Ministry is working to install smart grids to transmit and distribute power, Shaker said, noting that this will greatly contribute to improving the quality of energy and securing supply.

Smart grids would also help reduce investments needed for the infrastructure, the minister added.

Shaker also touched upon a new power supply tariff to be used with new energy and the generation of energy from wastes.

There is also a bill to encourage investment in the field of renewable energy, the minister said, adding that the system of the New & Renewable Energy Authority has been restructured to allow for partnerships with the private sector in generating, operating and selling renewable energy. 
Shaker made it clear that the energy subsidy program can be extended to seven years instead of five, given the change in the exchange rate.

The minister also talked about corporate governance, believing this would help improve the financial status quo of power firms, and restructure the Egyptian Electricity Holding Company and the Egyptian Electricity Transmission Company in light of the unified electricity bill.

The unified electricity bill is, according to Shaker, meant to maximize the role played by the Egyptian Electric Utility & Consumer Protection Regulatory Agency to guarantee impartiality and transparency.

Shaker also said that his Ministry will act to create a competitive electricity market through splitting the Egyptian Electricity Holding Company and the Egyptian Electricity Transmission Company.   
Work is underway to implement a number of projects worth 515 billion pounds, Shaker said, noting that the money is secured through loans to be paid in 15, 20 and 35 years.

But he still pointed to big challenges facing the Electricity Ministry due to the lack of funding. He talked about an EGP-50bn deficit expected next year due to the gap between income and expenditure. 

Measures have been taken to solve the deficit problem through implementing projects of an outlined urgent plan and completing electricity stations in northern Giza, Banha, the Sixth of October City and Ain Sokhna, as well as a wind power plant in Gabal el Zait, the minister noted.

Maintenance programs are also being implemented, Shaker said, adding that those cost some 10 billion pounds annually and that the Petroleum Ministry secures the needed fuel. 
The urgent plan is meant to generate 3,632 megawatts through implementing a number of power projects, minister Shaker said.

Two separate deals have already been sealed: one with General Electric, a US corporation, and Egypt's Orascom Construction Industries and the other with Elsewedy Electric of Egypt and Germany's Siemens and Ansaldo Energia of Italy, he added.

Under the agreements, a number of power plants will be established to generate 3,632 megawatts, Shaker explained.

He hailed as "very important" the role played by Egyptian construction companies in the agreements, also thanking the Armed Forces for their efforts in this regard. 

 The electricity minister said that about 2.7 billion dollars have been allocated for the urgent plan in order to overcome the current crisis.

Additional 500 megawatts have also been secured through mobile power units, Shaker said, noting that 350 megawatts of the total 500 have gone to Upper Egypt to be added to an existing 1,000 MW.

He also talked about a plan to establish a steam electric plant to generate another 650 megawatts in Upper Egypt. 
Shaker assured Egyptians that a surplus of 1,400 megawatts has been secured for the summer season.

He put the total number of power plants across Egypt at 69, in addition to 271 units.

The Electricity Ministry is acting to support the unified power network to meet the high consumption rates in some areas, Shaker said.

He made it clear that 2.6 billion pounds had gone to supporting the distribution grids in 2014-2015 and 2015-2016, noting, however, that additional support is still needed.

Some eight million power-saving led bulbs have so far been distributed, Shaker said, noting that this should save some 470 million megawatts

Source: MENA