Italian firm Italgen is in negotiations to provide an initial 320 MW of wind power in Egypt.

The firm had originally been in negotiations under Egypt’s merchant IPP model, but is now looking at changing the procurement model.
Wind turbine
They are currently in negotiations with Egypt’s electricity bodies to develop the scheme under a similar model used for the country’s competitive bidding build, own, operate (BOO) model. An agreement is expected to be reached by the middle of June, according to a source close to the project, who spoke to Meed.

The difference between the two models in Egypt is that for the merchant IPP model, the developer needs to reach an agreement with end users for buying electricity, whereas with the competitive bidding model, the government will agree a tariff price with the developer to offtake the power.

Egypt is planning for wind power to play a significant part in its aim for renewable energy to contribute to 20 per cent of the country’s power generation mix by 2022.