At the second day of Egypt’s Economic Development Conference, Siemens signed four MOUs worth over $10 billion with Egypt to construct several power plants with a total production capacity of 6.6 GW.
Siemens signed an agreement with Egyptian government to build a 4.4 GW combined-cycle power plant and install wind power capacity of 2 GW.
Further, Siemens will propose to build additional combined cycle power plants with a capacity of up to 6.6 GW and ten substations for reliable power supply.
The agreements were signed at Sharm El Sheikh in presence of Egypt’s minister of Electricity Shaker al Markabi, Germany’s vice chancellor Sigmar Gabriel, and Joe Kaeser, the president and CEO of Siemens AG.
According to the agreement, Siemens will establish a factory in Egypt to manufacture rotor blades for wind turbines.
The 4.4 GW power plant will be built in four modules, each consisting of two H-class gas turbines, two heat recovery steam generators, one steam turbine, and three generators.
Siemens H Class technology is matching Egypt’s requirements, combining high output with record-breaking levels of efficiency.
“Egypt needs a powerful and reliable energy system to support its long-term, sustainable economic development, and experienced partners who understand the specific challenges facing the country”, said Kaeser.
Siemens will be the contractor responsible for engineering, procurement and construction (EPC) for the Beni Suef power plant in Upper Egypt, and will work together with local partners.
The new agreements on these projects are expected to create around 1000 new opportunities in the region, boosting up the economy.
Including two further Memorandums of Understanding (MoU) which were signed at the event, Egypt’s power generation capacity will be massively increased by up to one third mostly by 2020.
Egypt has great potential for wind power generation, especially in the Gulf of Suez and the Nile Valley.
The conference is aimed at enhancing the Egyptian economy. Egypt aims for 4.3 percent energy growth in 2015-2016.