Egypt signs €8 billion power deal with Siemens

During a controversial visit to Germany, Egyptian President Abdel-Fattah al-Sisi witnessed the signing of €8 billion worth of energy generation contracts with German firm Siemens.

The orders expanded on memoranda of understanding inked during the Egypt Economic Development Conference in March, and come at a time when Egypt is facing a serious energy crunch.

The order is the largest ever for the firm, and will add 16.4 gigawatts to Egypt’s electricity grid, according to a Siemens press release. That figure would boost installed capacity by 50 percent.

Siemens will work in partnership with Egypt’s Elsewedy Electric and Orascom Construction to supply three gas-fired power plants with a total combined capacity of 14.4 gigawatts.

Plans call for 4.4 gigawatts to go online before summer 2017, with the remainder available 38 months after financing has been arranged. 

International and regional banks are expected to provide project financing.

One power plant will be located on the Mediterranean coast, north of Borolos Lake in the Kafr al-Sheikh Governorate, and the other in the new capital city development, according to Orascom. They will operate on natural gas with light fuel as a backup. 

Once completed, Seimens says, the power plants will be the largest in the world.

Siemens will also deliver as many as 12 wind farms with a combined capacity of 2 gigawatts, and a rotor blade factory near Ain Sokhna.