Read Microsoft Word - Short Paper1.doc text version

Short Paper Series Short paper #1

Global Wind Energy Market Wind Energy Industry in Egypt

- July 2008 -

Written and Researched by: Edited by:

Amin Zayani Ahmed Zahran

-1-

The aim of the short paper series production by TOC is to provide concise and relevant info about the international and regional carbon market & renewable energy sector.

The paper should help the energy sector activities within EK Holding to grasp the Clean Development Mechanisms (CDM) & Renewable Energy could be value adding to their projects. Your comments/ feedback are welcome.

-2-

Table of contents:

PART I: International Wind Energy Industry................................................. - 4 Wind Turbines......................................................................................................- 4 The world top ten Wind Turbines Manufacturers ...............................- 4 Main Players..........................................................................................................- 4 Largest Farms.......................................................................................................- 5 Top 25 Countries with installed windpower capacity ..........................- 6 Costs & Challenges..............................................................................................- 7 -

PART II: Wind Energy Industry in Egypt....................................................... - 8 Overview .................................................................................................................- 8 Zafarana Wind Farm .........................................................................................- 9 Local Technological Capabilities ................................................................- 10 Local Projects .....................................................................................................- 10 National Strategy for Wind Energy until 2020 .....................................- 10 Avelar energy ......................................................................................................- 11 NREA Partners and Expected Tenders.....................................................- 11 References ...........................................................................................................- 12 -

-3-

PART I: Wind Energy Industry Worldwide

Wind Turbines: A wind turbine needs at least a 3m/s to start producing electricity, but has to be stopped if wind exceeds 30m/s. One single turbine can produce up to 6MW, but the most used turbines for large wind farms produce between 0.75MW and 2.5MW.

The world top ten Wind Turbines Manufacturers: (Source: BTM Consult ApS March 2008)

1. Vestas (Denmark) 2. GE Energy (United States) 3. Gamesa (Spain) 4. Enercon (Germany) 5. Suzlon (India) 6. Siemens (Germany) 7. Acciona (Spain) 8. Goldwind (China - PRC) 9. Nordex (Germany) (China - PRC) 10. Sinovel

(23% Market share) (15.6 Market share) (10.5% Market share)

Main Players: 75% of global wind turbine sales come from the top four turbine manufacturing companies: Vestas, Gamesa, Enercon, and GE Energy. Vestas has installed some 35,000 wind turbines in 63 countries on five continents. -4-

GE Energy has installed over 5,500 wind turbines and 3,600 hydro turbines, and its installed capacity of renewable energy worldwide exceeds 160,000 MW. Gamesa, is a major builder of wind farms. Gamesa's main markets are within Europe, the US and China. In 2006, Europe accounted for 65% of Gamesa's sales, of which 40 percent were within Spain. Acciona Energy is a leader in the renewable energy sector and the company's mission is to "demonstrate the technical and economic viability of a sustainable energy model". Acciona Energy is the largest developer, owner and operator of wind farms (and not turbines) in the world, with 164 wind farms in nine countries representing over 4,500 MW of wind power installed or under construction.

Largest Farms:

Owner/Operator: Farm Fowler Ridge Wind Farm Horse Hollow Wind Energy Center Tehachapi Pass Wind Farm San Gorgonio Pass Wind Farm Altamont Pass Wind Farm Sweetwater Wind Farm Peetz Wind Farm Twin Groves 1 Buffalo Gap Wind Farm Maple Ridge Wind Farm Whitelee Wind Farm Cedar Creek Wind Farm Stateline Wind Project Thorntonbank Wind Farm King Mountain Wind Farm Alto Minho Wind Farm Wild Horse Wind Farm Blue Canyon Wind Farm Klondike III Wind Farm[6] Roscoe Wind Farm Maranchon Wind Farm Fenton Wind Farm New Mexico Wind Energy Center Vankusawade Wind Park Big Horn Wind Farm Installed capacity (MW) 750 736 685 619 596 505 400 359 353 322 322 300 300 300 281 240 229 225 223.6 209 208 206 204 201 200 Country USA USA USA USA USA USA USA USA USA USA UK USA USA Belgium USA Portugal USA USA USA USA Spain USA USA India USA

FPL Energy C-power FPL Energy Horizon Wind Energy Horizon Wind Energy

Iberdrola

-5-

Top 25 Countries with installed wind power capacity:

Installed wind power capacity (MW) Rank Nation 2005 2006 1 Germany 18,415 20,622 2 United States 9,149 11,603 3 Spain 10,028 11,615 4 India 4,430 6,270 5 China 1,260 2,604 6 Denmark (& Faeroe Islands) 3,136 3,140 7 Italy 1,718 2,123 8 France 757 1,567 9 United Kingdom 1,332 1,963 10 Portugal 1,022 1,716 11 Canada 683 1,459 12 Netherlands 1,219 1,560 13 Japan 1,061 1,394 14 Austria 819 965 15 Greece 573 746 16 Australia 708 817 17 Ireland 496 745 510 572 18 Sweden 19 Norway 267 314 20 New Zealand 169 171 145 230 21 Egypt 22 Belgium 167 193 23 Taiwan 104 188 24 Poland 83 153 25 Brazil 29 237

2007 22,247 16,818 15,145 8,000 6,050 3,129 2,726 2,454 2,389 2,150 1,856 1,747 1,538 982 871 824 805 788 333 322 310 287 282 276 247

-6-

Costs & Challenges: The cost of a wind farm can vary according to multiple factors: -The technology used -The accessibility of the site -Possibility of local manufacturing As a turbine is composed of huge parts (tower, blades, generator,...), the transportation is a technical challenge and can cost up to 20% of the total cost. The average global cost is one million US$ / one MW.

-7-

PART II: Wind Energy Industry in Egypt.

Overview: The Egypt Wind Atlas revealed the huge potential of the Red Sea region in matter of wind energy: The mountain chains on the coasts create a natural corridor that enhances the stability of winds. The Gulf of Suez west coasts have the advantage of being the closest to where electricity is most demanded. This region alone can host about 20 000MW of wind farms. Zafarana and Gulf al Zayt's potential is 3000MW. Current installed capacity (March 2008) is 305MW, planned capacity for Zafarana project by 2010 is 545MW. Potential:MW 20 000 3000 Installed:MW 305 (545 by 2010) 305 (545 by 2010) Remaining Potential:MW 19455 2255

Red Sea Region Zafarana and Gulf al Zayt

The purple, pink and red areas on the maps are characterized by fast sustainable winds and are qualified by NREA as having the greatest potential for wind farms.

Wind Speed Yearly Average

-8-

Closer View: Zafarana Wind Speed Yearly Average: 8.5m/s. Gulf al Zayt Wind Speed Yearly Average: 10.5m/s. These two spots are among the best in the world for implementing wind farms.

Wind Speed Yearly Average

Lately, NREA has earmarked an area of 656km² at the Gulf of Zayt and another area of 1200km² south of Zafarana for studying the possibility of establishing wind farms. They would be availed for private investments. German, Italian and Japanese governmental and private parties showed interest in building Wind farms in this area and sponsored several feasibility studies. Zafarana Wind Farm: 416 Turbines with different technologies and capacities supply 305MW from this wind farm today. The production should reach 545MW by late 2010 when the 8th and last phase would be operational.

Phase:

Capacity:(MW)

Partner:

Danida KfW Bank Danida KfW Spain JBIC KfW Danida -9-

CDM:

CERs already sold to the foreign partner. CDM not agreed yet.

Technology:

0.6MW Nordex 0.66MW Vestas 0.85MW Gamesa

Zafarana1 30 Zafarana2 33 Zafarana3 30 Zafarana4 47 Zafarana5 85 Zafarana6 120 Zafarana7 80 Zafarana8 120 Total Capacity: 545MW

Based on available data and exchange rates at January 2006: -The costs of previously installed wind farms are in the range of 850 ­ 1000 /kW. -The production cost of the projects ranges between 2.6 and 3.5 Cent /kWh. Local Technological Capabilities: NREA encourages the localization of such industry in Egypt based on technology transfer, joint Venture, under license against royalty or any other forms, whatever is the most appropriate. NREA invited several wind manufacturers to discuss this trend with the Egyptian concerned entities. Local Projects: An experimental 5.2 MW wind farm at Hurghada on the Red Sea Coast includes 42 units with different technologies and capacities from US, Denmark and Germany (2 blades, 3 blades, pitch control, stall control, lattice & tubular towers, 100 & 300 kW units). Some components were locally manufactured such as blades, towers, mechanical and electrical joints which represent about 40% of the wind turbine. The farm has been connected to the local grid of the city in stages since 1993. Besides, repairs and rewinding of Generators have been done in Egypt since 2005, the repaired generators are working properly since then.

Find below an abstract from the NREA Strategy. National Strategy for Wind Energy until 2020: April 2007, the Supreme Council of Energy in Egypt has adopted a resolution, on an ambitious plan to cover 20% of the generated electricity by renewable energy by 2020, including a 12% contribution from wind energy, translated to about 7200 MW grid-connected wind farms. Such plan gives a room enough to the private investments to play the major role in realizing this goal. The Egyptian electricity sector has recently drafted a new electricity act to encourage renewable energy utilization and private sector involvement. In addition to guaranteeing third party access, power generation from renewables will enjoy priority in dispatching whenever they are available. - 10 -

"In

The proposed policies to foster increasing wind contribution in the Egyptian electricity mix consist of two phases: Phase 1: Adopting a Competitive Bids approach through issuing tenders requesting private sector to supply power from renewables. The financial risk for investors is reduced through guaranteeing a long term power purchase agreement. Phase 2: Increasing the chances to the market forces through the implementation of feed-in-tariff taking into consideration the prices achieved in phase 1. NREA has taken the decision to further support wind energy business through providing resource assessment, necessary data for feasibility studies and technical support for potential project developers. Besides the already earmarked areas, works are underway to earmark other promising areas; these areas will be also availed for future wind projects carried out by private sector. It is worth mentioning that the Tender documents for the Competitive Bids are presently under preparation, in cooperation with the World Bank, within the framework of the Technical Assistance Program. ¹ Avelar energy: Avelar Energy opened an office in Egypt to enter the business of wind energy, in partnership with Italian and Egyptian investors they are establishing an industrial company destined to manufacture parts of wind turbines locally, with a capital of 50 million US$. NREA Partners and Expected Tenders: NREA signed several MoUs with mainly European companies to avail them zones in Zafarana and Gulf of Zayt for the purpose of creating wind farms. The newest was signed between NREA and the Italian group ItalCementi with a goal of establishing a 400MW farm in Gulf al Zayt. The next tenders to be announced (2008 to 2010) will concern Gulf al Zayt area.

"

1: Off NREA official website: http://www.nrea.gov.eg - 11 -

References :

BTM Consult ApS - March 2008 Egypt wind atlas by the New and Renewable Energy Authority, Cairo, Egypt Interview with Dr. Eng, Mohamed Mostafa Elkhayat, Director of

Technical Affairs. Wind Energy Department NREA.

Zafarana Wind Farm Presentation by Sherif Aboulnasr,

Chairman of the WEC Financing Renewables Task Force, Egyptian National Committee of the World Energy Council (WEC).

Wind and solar power availability in some coastal sites of Egypt by S. M. Abdelaty.Department of Physics, Faculty of Education, Port said, Suez

Canal University, Egypt

FEASIBILITY STUDY FOR A LARGE WIND FARM AT GULF OF EL ZAYT by DECON mbH, FICHTNER ENGINEERING SERVICES AND

CONSULTANCY, financed by KfW-Entwicklungsbank - August 15th, 2007-

Zafarana wind park, Egypt Case Study by German Renewable Energy.com Al-Mal Newspaper (several articles).

- 12 -

Information

Microsoft Word - Short Paper1.doc

12 pages

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

544808


Notice: fwrite(): send of 201 bytes failed with errno=104 Connection reset by peer in /home/readbag.com/web/sphinxapi.php on line 531