Egypt’s Pgesco is planning to build a 650MW power project at Suez. The new plant will replace an ageing plant of a smaller size that was commissioned in the 1950s and decommissioned four years ago.

Pgesco, which is a joint venture between the Electricity and Energy Ministry, the US’ Bechtel and Egypt’s Commercial International Bank, is procuring equipment for the project. Pgesco is in talks with France’s Alstom and Italy’s Ansaldo Energia for the main components of the project.

At Giza North, Pgesco is adding 750MW capacity to a 1,500MW power plant. Pgesco is in discussions with the lenders on the original project to fund the expansion. Work has already started at the site for the expansion.

Pgesco is also pushing ahead with a new supercritical power project at Helwan South. The facility will comprise three 650MW units. Pgesco is currently in the procurement phase for the project.

At Beni Ha, a 750MW power project is currently under construction with commissioning of the plant’s first unit planned for summer 2013. A further 500MW capacity will be added at West Damietta once the network connection is completed.

Demand for power is rising in Egypt. While the construction of several projects continued throughout the revolution and consequent period of uncertainty, others have been delayed. Projects that were approved before the revolution have gone ahead, but the number of new projects in the market has fallen and this could impact upon Egypt’s electricity supply in the coming years.

According to a source at Pgesco, “In power generation, if you are a developing country, you need to keep developing new capacity. If you miss one year or 18 months, it is a disaster for the future… If nothing happens, a few years later there will be a crash. I think that starting next year there will be a crash as demand continues to increase and supply will be limited.”