An Abu Dhabi firm is leading a consortium to build the first coal-fired power plant in Egypt to address the country’s severe power shortage, Reuters reported.
A memorandum of understanding (MoU) was signed between Al Nowais Investments and the Egypt Electric Holding Company, the country’s state-run power company, it was reported.
Al Nowais Investments will provide 70% of the capital for the plant, the chairman of the company told Reuters by phone.
Discussions are ongoing with investors in Singapore, South Korea, China and Egypt to fund the remaining 30 percent of the plant, he added. The plant will be built in Ayoun Moussa in the Suez area with plans to build a jetty for importing coal.
“Egypt has opened the door for private investment in its power sector and we want to be an early investor,” Al Nowais said, according to Reuters.
The new plant will provide a total of 3,960 MW of electricity.
According to a previous report by The Guardian, Egypt has been experiencing one of its most serious energy crises in decades, and parts of the country face around six power cuts daily for up to two hours at a time.
In August, electricity demand hit a record daily high of 27,700MW, 20% more than power stations could provide, state media reported.