SWOT Analysis

Why Invest in Wind

Most of Egypts oil has been consumed domestically
Estimated demand to increase at a rate of 1500 to 2000MW per year
Hydro potential has already been saturated
Investment cost in Solar power is high
Zafarana wind farm is one of the largest onshore in the world
No of wind energy projects in pipeline

What is in it for Egypt?
Estimated Turn Over in Egypt (Appx. Egp 2.8 Billion) by 2020
250MW wind energy installed, would save 1,47,560 T.O.E. & reduce emissions
of about 347222 TCO2 (Source: Projection on NREA statistics)
Creation of immediate jobs.
Approximate indirect development of local subsuppliers & related supporting
industries.

Opportunities
Estimated increase in demand for energy
Hydro-power potential is saturated
Has worlds one of the best wind resources
Financial funding by government
Custom duty exception and sales tax exceptions
700 sq kms of land given for private players
High Un-employment rate

Threats
Un-stable socio-political environment
Currency Threat
Gap between de-facto and de jure
Dispute settlement mechanism
Decisions made on ad-hoc basis
Soil Condition in Egypt



Strengths
Technical expertise in wind power generation
High capital backing of Reliance Group
JV with chinas low cost wind turbine makers
Diversified business covering infra-structure and power
Successfully completed wind-farm in India (100 MWs) at various locations
Capital backing from Exim bank for 900 MWs of renewable energy

Weakness
International exposure
Dis-economies to scale
Over-leverage financial position
Trained manpower for O&M in Egypt



Legal Requirements
Power Generation License
Power transmission License
Verification of License every year
Environmental feasibility report
Adherence to the set specifications for design, construction, modification and
operation
Compliance with the transmission code
Financial Analysis
250 MW plant generates 10,000,000 KWH
Capital Investment cost 300,000,000 USD
Avg Cost of Energy per unit 0.07 USD
O&M cost 25% of per year generation 20000USD
Payback period expected 5 yrs