Egypt has steadily expanded its wind power capacity since 2000 and now has over 500MW of installed wind capacity, the largest in Africa and the Middle East. The country has an ambitious target to build 7,200MW of additional wind power by 2020 to supply 12% of national electricity. Both the public New and Renewable Energy Authority and private sector are actively developing new wind farms, with over 2,000MW of projects under construction or in the bidding phase. International firms are also involved in developing Egypt's wind sector through building projects, supplying turbines, and participating in competitive tenders. The government is working to liberalize regulations to attract more private investment in renewable energy.

1. Wind Power in Egypt
Sector Overview
September 2013
1 El Yemen St.
Apt. 18, 7th Floor
Dokki, Giza
12311, Egypt
Tel: +2 0100 56 555 35
info@caravelfinancial.com
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2. Egypt’s Energy Mix
• Total installed capacity of
27,000 MW as of June
2012
• Largest wind generation
capacity installed in Africa
and the Middle East with a
total of 547MW
2
Thermal
87%
Hydro
10%
Wind
2%
Solar
1%
Source: Egyptian Electricity Holding Company Annual Report 2011/2012

3. Steady Expansion in Wind Farms Since 2000
0 MW
100 MW
200 MW
300 MW
400 MW
500 MW
600 MW
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Source: Egyptian Electricity Holding Company Annual Report 2011/2012
“Wind Energy in Egypt”, Mohamed Salah El Sobki

4. National Wind Plan
Target to build
additional generation
capacity of 7,200 MW
by 2020 making up
12% of national
power capacity
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NREA*
2,200 MW
31%Private Sector
5,000 MW
69%
TARGET CAPACITIES TO BE INSTALLED
*New & Renewable Energy Authority

5. Under development by New & Renewable Energy Authority:
– Gulf of Al Zayt 200MW under construction financed by KfW EIB EU
– Gabal Al Zayt 220MW by JBIC
– Gulf of Suez 120MW by Spain
– Gulf of Suez 200MW by JICA
– Gulf of Suez 180MW by Spain
– Western Nile Bank 200MW
Projects in Pipeline – Public Sector
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6. • Independent Power Producers:
– Italgen 120MW (under construction)
• Build Own Operate:
– Gulf of Suez 250MW (bidding stage)
– Gulf of Suez 500MW
• Auction System:
– 6 lots at 100MW each (bidding stage)
Projects in Pipeline – Private Sector
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7. 7Source: http://bit.ly/1azzx06

8. Gulf of Suez 250MW Build Own Operate Concession
• Design, finance, build, own, & operate 250MW wind farm for 25
years in addition to a 220kv-MV transformer station
• Off-taker is Egyptian Electricity Transmission Co. (EETC)
• Joint wind measurement campaign financed by shortlisted
bidders
• Total plot area of 37 km2
• Altitude between 100m and 250m above see level
• Backed by a financing agreement from JICA
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9. Gulf of Suez 250MW BOO continued…
9
2009
• May: request for pre-qualifications issued
• Nov: 10 bidders shortlisted
2011
• Jan: Site Measurement Framework Agreement signed
between bidders
2012
• Nov: end of wind, topographical, geotechnical studies
• Dec: sovereign guarantee secured
2013
• May: request for proposals issued
Source: “Status of the Wind Power Market in Egypt”, Dr. Walid El-Khattam

10. Italgen’s IPP (subsidiary of Italcementi)
• Developing 120MW farm to power cement factory (Suez Cement)
• Total investment budgeted at about €140 million
• Land use agreement signed with NREA in 2012
• located at Gabal-Al-Zeit
• Commissioning expected in 2014
• Expandable to 400MW
• Contract signed with Egyptian Electricity Transmission Company for
connection to the national grid
• Currently raising finance
Source: http://bit.ly/12dbL7X
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11. The 6 x 100MW Auction Lots
• Six 15 km2 land plots to host 100MW each in Gulf of Suez under 25 year
concessions
• IPP system where each developer signs off-take agreements directly with end
clients (client list to be submitted with bid)
• Government mandated high consumption factories to use renewable energy to
meet 50% of consumption starting from 2015 as pre-requisite to obtain licenses
• Land allocation agreements on usufruct basis
• A minimum of 2% of power output (or monetary equivalent) to be allocated to
government
• Transmission fees to be paid to EETC
• RFPQ launched in Dec 2012, submittal deadline Sep 30 2013
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Source: http://bit.ly/1bkkiwE

12. Key Players - Suppliers
• Gamessa (Spain):
– Installed 406MW capacity in Egypt since 2003
– Awarded contract in 2011 for a further 200MW
• Vestas (Denmark): installed 77MW in Zaafarana
• Nordex (Germany): installed 63MW in Zaafarana in 2001
• El Sewedy for Wind Energy Generation (SWEG)
– Manufactures wind turbines, towers, and rotor blades
– Goal to develop, operate and maintain wind farms
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13. Key Players – Potential Developers
International Firms
Italgen (Italy) Toyota (Japan)
Mitsui (Japan) Alstom (France)
Siemens (Germany) Terna (Greece)
Mitsubishi (Japan) AES Corporation (US)
Mainstream Renewable Power Iberdrola (Spain)
Korea Electric Power Corporation EDF (France)
Renewable Energy Services (UK) Enel (Italy)
Kharafi National (Kuwait) General Electric (US)
Daewoo (Korea) Siemens (Germany)
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Local Firms
El Sewedy Wind Energy Generation PICO Energy
Orascom Construction Industries Hassan Allam Holding
EK Holding AAW Consulting Engineers

14. Regulatory Environment
• Sector regulated by the Egyptian Electric Utility and Consumer Protection Regulatory
Agency (EEUCPRA) also known as EgyptERA
• Law 102-1986 forming NREA
• Law 100-1996 authorizing private generation
• Law 89-1998 setting out general tendering rules for public bidding
• Proposed new electricity law liberalizing market (competitive bidding, feed-in tariffs,
take or pay contracts) awaiting ratification by parliament
• 7,600 km2 allocated for wind farms by presidential decree
• Private sector plots allocated under usufruct agreements
• Imported components exempted from custom duties
• Government mandates high consumption factories to use renewable energy to meet
50% of consumption starting from 2015
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