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Egypt and Siemens to massively increase power generation capacity

19 March 2015

• Increase by up to one third of current generation capacity
• Agreement on 4.4 gigawatt (GW) Beni Suef power plant in Southern Egypt
• Building of 2 GW wind power generation capacity and wind rotor bladefactory agreed
• Agreement signed for Siemens to develop concepts for a further 6.6 GW ofcombined cycle power plants and ten substations

Siemens and the Egyptian government have reached firm agreements today to build a 4.4 GW combined-cycle power plant and install wind power capacity of 2 GW.Siemens will build a factory in Egypt to manufacture rotor blades for wind turbines, creating up to 1,000 jobs and therefore nearly trebling Siemens’ footprint in the country. Including two further Memorandums of Understanding (MoU) which were signed at the event, Egypt’s power generation capacity will be massively increasedby up to one third mostly by 2020. Under the agreements, Siemens will propose to build additional combined cycle power plants with a capacity of up to 6.6 GW andten substations for reliable power supply. The agreements were signed at the Egypt Economic Development Conference in Sharm el-Sheikh in the presence of Egypt’s Minister of Electricity Shaker al Markabi, Germany’s Vice Chancellor Sigmar Gabriel, and Joe Kaeser, President and Chief Executive Officer of Siemens AG.

“Egypt needs a powerful and reliable energy system to support its long-term, sustainable economic development, and experienced partners who understand the specific challenges facing the country”, said Joe Kaeser. “Siemens’ technology andexpertise has been supporting Egypt’s growth for more than 150 years, and ourtrack record shows that we deliver what we promise - also in challenging times. We are part of Egypt’s society and proud to shape Egypt’s future together. We have also agreed to continue the well established practice of dual-education apprenticeships, a success-story between Germany and Egypt for decades.”

According to the agreement, Siemens will be the contractor responsible for engineering, procurement and construction (EPC) for the Beni Suef power plant in Upper Egypt, and will work together with local partners. The 4.4 GW power plant will be built in four modules, each consisting of two H-class gas turbines, two heatrecovery steam generators, one steam turbine, and three generators. Siemens H-Class technology is matching Egypt’s requirements, combining high output withrecord-breaking levels of efficiency.

"Wind power is clean and renewable, and will strengthen Egypt's energy security at this important point in its history. Adding two gigawatt will be a significant step towards diversifying the country’s energy mix”, said Markus Tacke, CEO Siemens Wind Power and Renewables Division. "Egypt has great potential for wind power generation, especially in the Gulf of Suez and the Nile Valley", Tacke added. "We are proud to be working with the government and people of Egypt to tap this potential."

Siemens has class-leading technology for both onshore and offshore wind power technology, and substantial global experience in the construction and delivery ofwind energy projects. The Egyptian government plans to expand wind capacity overthe coming years as part of a plan to increase wind generation to 7.2 GW by 2020.

Siemens has been working in Egypt since 1859, and has maintained a continuous presence in the country since opening its first office in Cairo in 1901. The company’s technology has been implemented in the Nubaria, Talkha, Damietta, Midelec and El-Kureimat power plants, and Siemens is also a key technology supplier to major projects in the transport, healthcare and industrial sectors. Siemens has been a reliable and trusted partner throughout more than 100 years in Egypt.

Marie Agaliotou