CAIRO: Minister of Electricity and Energy Hassan Younes inaugurated a 10-megavolt electrical plant in northwestern Egypt in a ceremony Thursday, Egypt's State Information Service reported. The new plant, which is being undertaken with investments of LE 15 million, is part of the ministry's long-term plan to expand and develop Egypt's electricity grid. The site of the project is Sidi Barrani, a village near the Libyan border. The decision to build in Marsa Matrouh province marks the beginning of a ministry plan to expand coverage to Egypt's northwest desert. The new plant is part of a planned LE 14 billion investment in Egypt's energy infrastructure for 2009, which will be applied to new electricity projects and the renovation and expansion of the national grid. This year's projects follow LE 8 billion in investments during 2008 that added 1,500 MW to the national electricity grid. Demand for electricity in the country grew 13 percent in 2008 alone, and the ministry has been rapidly implementing projects to meet demand and achieve 100 percent electricity coverage across the country. Grid coverage is currently at about 99 percent across Egypt. In June, Younes announced a new five-year electricity plan to begin in 2012 and approved LE 120 billion for nine new electricity stations to be built during that period. When completed, the new stations will have a combined capacity of 11,000 MW generated through a combination of conventional natural gas and alternative energy methods such as wind and thermal power. The 2012-2017 plan will focus on developing Egypt's electricity network by installing new grids and financing new projects to expand capacity by 10,450 MW. Younes said at the signing ceremony that nuclear power plants would be established at three other sites in Marsa Matrouh governorate, including one at Dabaa, in the near future. Nuclear power is expected to be Egypt's major source of energy in the coming years. Since 2006 the government has been working to build nuclear power plants around the country to reduce reliance on traditional energy generating sources such as hydropower. However, plans for the first plants are just coming together this year. In June, the Egyptian signed a $180 million contract with Australian engineering firm WorleyParsons for training and consulting in nuclear power issues. The timeline for the construction of the new nuclear power plants is still pending, but Younis's announcement of the locations in Thursday's statement indicates that the project could be well underway. Some analysts are taking a more conservative stance on the issue, however. According to Magdy Sobhy, economics expert at the Al-Ahram Center for Political and Strategic Studies, the plan for introducing nuclear power is too vague to verify. "I'm still waiting to see whether they are serious about this plan, right now there is a not a lot of information available on the projects, and I'm waiting to see how they will carry out their plan, he said. Local media reported Sunday that board members of the Egyptian Federation of Industries have approved a draft proposal for setting up a special fund to finance internal grids of gas supply pipes to plants located in industrial zones. The new fund will reportedly start with a capital of LE 5 million and will be financed from proceeds of natural gas invoices of large companies, which will cover about 70 percent of the cost. The remaining 30 percent will be contributed by the Industrial Modernization Fund, the Ministry of Petroleum and investors associations. -Additional reporting by Mariam Abdelhamid.
