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

1. ELSEWEDY FOR WIND ENERGY GENERATION – SWEG
LOCAL MANUFACTURING:
EXPERIENCES FROM THE MENA REGION
28TH JUNE 2009, SHARM EL SHEIKH, EGYPT
www.elsewedy.com 1

2. EGYPT – LEADER IN THE REGION
Wind Market – Regional
Egypt & MEA Demand
Egypt is the biggest
market in the MEA
Region
Confirmed potential
in Egypt is 500 ‐ 600
MW/year starting
from 2010 (200 MW
NREA + 300 – 400
MW IPPs)
www.elsewedy.com 2

3. GOVERNMENT COMMITMENT FOR RE & WIND
ENERGY PROJECTS
• NREA Strategy:
– 3% by 2010 mainly Wind
Energy
– 20% by 2020 mainly Wind
& Hydro
• 410 MW installed Wind
Energy in Egypt
• 7200 MW implementation
– 600 MW yearly
– 200 MW NREA & rest
private sector
www.elsewedy.com 3

4. WIND ENERGY MARKET OVERVIEW
Global Overview
Y2008 Figures:
1.Growth rate:
28%
2.Turnover:
40 bn EUR
3.Total installed capacity:
121,188 MW
4.Average capacity
installation:
25 – 30 MW
yearly
Source: World Energy Report, 2008
www.elsewedy.com 4

5. EGYPT’S WELL LOCATED
GEOGRAPHICAL LOCATION
EU Agreement Industry Regulations
No customs imposed on Arab Free Trade Agreement
El Sewedy’s exports from
Egypt to Europe, whereas
European imports into No customs
Egypt are subject to tariffs El Sewedy
Cables imposed on El
Sewedy’s exports
El Sewedy Cables enjoys from Egypt to all
a number of trade Arab countries
agreements between
Egypt and Europe, Arab
countries, and African COMESA Agreement
countries
No customs imposed
on El Sewedy’s
exports from Egypt to
all African member
countries, whereas
Arab and European
competitors do not
enjoy this privilege
www.elsewedy.com 5

6. GAINS IF ENCOURAGE INDUSTRY
Economic Growth Energy Independence Clean Environment Job Creation
Estimated Turn Over in Wind resources are Egypt is challenged to strike Wind energy in Egypt
Egypt of Euro 10.6 Billion available locally and will never the balance between availing would impact direct (e.g.
(Appx. Egp 80 Billion) by 2020 deplete! Egypt’s foreseen energy for growth while manufacturers,
(estimation based on today’s potential is 20,000 MW reducing Carbon emissions to IPP/developer…etc) and
prices! (Source: EWEA 2009) installed wind energy (Source acceptable levels. Wind indirect (RM, related
NREA) doesn’t pollute the services…etc) employment
Expected at least 3 environment!
potential local wind turbine Utilizing wind energy will In Europe wind energy
manufacturers & 10 potential reduce dependence on oil With 322 MW wind employed 154,000 people in
local IPP/developers by 2020 imports and contribute to the energy installed Zaafarana 2007, with a rate of 15 people
(Source: current market situation) security of energy supply saved 190,000 T.O.E and direct employment per MW
reduced emissions of about installed per year (Source: EWEA
Approximate indirect Utilizing wind energy will 450,000 TCo2 in 2007 (Source: 2009)
development of 30 local sub‐ lead to diversity of energy NREA statistics)
suppliers & related supporting supply (Oil, natural gas, The wind energy industry
industries (RM supply, sub nuclear, wind…etc.), target is With 7200 MW wind in Egypt could participate for
contractors, components to reach 20% of generation energy installed, Egypt would the creation of 75,000 direct
supply, consultation & banking capacity from Renewable Appx. save 4.25 Million T.O.E jobs by 2020 (Source: projection on
services…etc) Energy, 7200 MW by 2020 and reduce emissions of EWEA statistics)
(Source: MoE) about 10 Million TCo2 (Source:
Projection on NREA statistics)
www.elsewedy.com 6

7. After Electricity
Before Electricity Act 2003 (with
Act 2003 (With No Feed in Tariff)
Feed in Tariff)
Installed Wind Power Capacity in India,
Sources: Joanna Lewis; Ryan Wiser ; A Review of International Experience with Policies to Promote Wind Power Industry Development,
Energy Foundation China Sustainable Energy Program; March 10, 2005
www.elsewedy.com 7

8. WIND INDUSTRY’S CHALLENGES
• Technology
• Logistics and components availability
• Specialized experiences & labor force
• Product Quality & High level of Services
• Financing
www.elsewedy.com 8

9. www.elsewedy.com 9

10. Elsewedy for Wind Energy Generation
www.elsewedy.com 10

11. Turbine Factory(front)
TOWER FACTORY - CONSTRUCTION
Blades Factory (front)
www.elsewedy.com 11

12. M-TORRES OVERVIEW
M-Torres Company Overview
One of the most Innovative
Engineering companies in
Spain
Started in the paper industries
& now one of the leaders in
supplying machines for the
aerospace industry
A total of 500 high skilled
employees
M-Torres Wind Division
2001 the first innovative
1.5 MW prototype
MTOI engineering,
manufacturing,
development, O&M
www.elsewedy.com 12

13. WIND TOWER PRODUCTION IN
EGYPT
SIAG Group Overview
• The leading tubular steel tower
supplier in Germany and Europe
• Market share more than 30%
• Leading technology in steel industry
• Nearly 1000 employees
• Proven track-record
of growth in Europe
www.elsewedy.com 13

14. SWEG | Elsewedy For Wind Energy Generation S.A.E.
13 El-Obour Buildings, Salah Salem Street,
Nasr City, 11371 Cairo, Egypt
Phone: +20 2 22 62 34 42 – Fax: +20 2 22 63 91 55
sweg@elsewedy.com – www.elsewedy.com
www.elsewedy.com 14