Slow demand growth prompts Egypt to delay construction of new coal plant

first_img FacebookTwitterLinkedInEmailPrint分享Daily News Egypt:The Egyptian Electricity Holding Company (EEHC) decided to postpone the signing of contracts with AlNowais Investment Company for the construction of a coal-fired power station in the Oyoun Mousa area.Sources from the ministry of electricity and renewable energy told Daily News Egypt that the surplus electricity production is the main reason for postponing the signing of the contracts. This is especially since reserves have reached 20,000MW per day and will rise to 22,000MW after the addition of energy from the Gulf of Suez wind farm and solar energy projects in Benban.In addition, the sources said it is difficult to build a private coal port for the project at Oyoun Mousa because the water there is very shallow, necessitating the construction of the port at a greater depth within the water. Inevitably, this raises the total cost of the station.Talks with the UAE company, AlNowais, began three years ago. The company officials held more than 50 meetings with officials of the EEHC for electricity to implement a coal-fired power plant at Oyoun Mousa. The sources pointed out that the studies and paperwork of the project were transferred to EEHC for revision and no new decision was taken since then, noting that the project will not be signed off this year.“The agreement on the purchase of energy produced from the project was finalized at 4.01 cents per kW/h leaving only the legal aspects of the contract that will be reviewed, but it may take longer,” the source said.The sources said that the lack of increased demand for energy will push the EEHC to postpone a number of projects that seek implementation in order to avoid the aggravation of financial burdens.More: EEHC delays coal-fired plant due to production surplus Slow demand growth prompts Egypt to delay construction of new coal plantlast_img

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