On December 14, 2024, the largest integrated photovoltaic and storage power station in Egypt, which was built by CEEC, officially started construction in Egypt. The project, which includes 1GW of photovoltaic power generation and 600MWh energy storage system, with a total investment of about US$600 million (about 4.366 billion yuan), is not only another major breakthrough for Chinese new energy enterprises in the international market, but also an important practical case of China's new energy technology in countries along the "Belt and Road". China Exportsemi will analyze the importance of this project and its enlightenment to China's new energy industry from three dimensions: technical advantages, economic benefits, and social impact.
Technical advantages: the successful application of advanced optical storage integration solution
The project combines the latest technology of photovoltaic power generation and energy storage system, and provides effective support for the transformation of Egypt's energy structure. The project not only uses high-efficiency photovoltaic modules, but also is equipped with a large-capacity energy storage system, which combines the following technical characteristics:
1. High-efficiency photovoltaic modules:
This project uses a new generation of high-efficiency monocrystalline silicon photovoltaic modules, with a photoelectric conversion efficiency of more than 22%. These modules not only perform well in high-temperature environments, but also significantly reduce the cost per unit of electricity.
2. Reliability of energy storage technology: The 600MWh energy storage system uses advanced lithium battery technology with high cycle life and fast response characteristics to provide stable power output during peak loads. In addition, the intelligent energy storage management system can optimize power dispatch according to the load demand of the power grid, improving the operational efficiency of the power station.
3. Difficulty and innovation in the construction of the project:
Banha is located in the south of Egypt, with a hot climate and severe desertification. Relying on its experience in undertaking similar projects around the world, CEEC has effectively overcome the challenges brought by climatic and geological conditions through customized design and the cooperation of localized construction teams.
Pictured: China Energy Construction Co., Ltd. announced the start of construction of Egypt's largest integrated photovoltaic and storage power station
Economic benefits: The multiple values of China-Egypt cooperation
1. Support for Egypt's energy transition:
The completed PV and storage integrated power station is expected to generate 3,000 GWh of electricity per year, which can meet the electricity needs of 500,000 households, and directly promote the implementation of Egypt's energy diversification strategy. Currently, about 90% of Egypt's electricity comes from natural gas and oil, and the commissioning of the project will help Egypt gradually reduce its dependence on fossil fuels.
2. Significant cost-effectiveness:
With an annual power generation capacity of 3,000 GWh, the plant's unit cost of electricity generation is only around US$0.02/kWh, about 30% lower than Egypt's current reliance on natural gas. In addition, the energy storage system can further reduce the overall grid operating cost through peak shaving and valley filling.
3. Economic return for Chinese companies:
The total value of the project is US$600 million, and the contract period is 17 months. Through open bidding, a consortium formed by China Energy Construction, Zhejiang Thermal Power and Southwest Research Institute finally won the contract. This success has not only generated significant revenue for CEEC, but also laid the foundation for more projects in the MENA region in the future.
4. Driving employment and technology export:
More than 7,000 local jobs will be created during the construction of the project, while China's advanced technology and construction management experience will be exported. The training and cooperation of local employees in Egypt also laid a solid foundation for the subsequent operation and maintenance of the power station.
Societal impact: the global rollout of green energy
The social impact of this project far exceeds its economic benefits, which are mainly reflected in two aspects: environmental protection and social responsibility:
1. The environmental benefits are significant:
the power station will reduce carbon dioxide emissions by 1.56 million tons per year, which is equivalent to planting 8 million trees. This is not only in line with Egypt's green development goals, but also demonstrates the positive contribution of Chinese new energy companies to global climate change governance.
2. Enhancing the brand image of Chinese companies:
Egyptian Prime Minister Mustafa Madbouly spoke highly of CEEC's project management capabilities and contribution to Egypt's energy development at the groundbreaking ceremony. This kind of government-level recognition will undoubtedly help enhance the brand influence of Chinese companies in the international market.
3. Promote the implementation of the Belt and Road
Initiative: This project is one of the typical cooperation projects under the Belt and Road Initiative. Through this cross-border cooperation, China has not only brought advanced new energy technologies to developing countries, but also promoted a new model of South-South cooperation in the field of green energy.
Enlightenment for China's new energy to go overseas
1. Targeting overseas market demand:
Egypt is located in North Africa, and its energy transition needs are growing day by day. CEEC's choice of Egypt as a key market shows that it deeply understands the desire for green energy in developing countries. This provides a powerful reference for Chinese enterprises when exploring the international market: they must fully investigate local needs and provide customized solutions.
2. Consortium model to enhance competitiveness:
CEEC, Zhejiang Thermal Power and Southwest Institute formed a consortium and won the open bidding through synergistic advantages. This model of resource integration is worthy of reference by other Chinese enterprises, especially in large-scale international projects, which can effectively improve the success rate of bidding and the efficiency of project execution.
3. The export of soft power cannot be ignored:
in the process of promoting the project, CEEC not only exported technology and equipment, but also paid attention to the training and capacity improvement of local Egyptian employees. This technology transfer model not only strengthens the soft power of Chinese enterprises, but also lays a solid foundation for deepening cooperation in the future.
Future outlook
With the rising global demand for renewable energy, the application prospect of the integrated photovoltaic and storage model in the international market is becoming more and more broad. With their technological advantages, cost control capabilities and efficient project execution, China's new energy companies are fully capable of occupying a larger share of the global market.
Taking this project as an example, this is not only a successful practice of China's new energy technology in North Africa, but also provides valuable experience for CEEC and other enterprises to further expand the Middle East and North Africa market. In the future, China's new energy enterprises can make further efforts in the following aspects:
1. Increased focus on emerging markets: Southeast Asia, South America, and other regions, which also have strong demand for clean energy.
2. Continue to deepen technological innovation: especially in the efficiency of energy storage systems and the conversion efficiency of photovoltaic modules, and further consolidate technological advantages.
3. Explore more cooperation models: In addition to EPC general contracting, you can try BT, BOT and other methods to increase project flexibility and profitability.
Conclusion
The successful start of China's construction of the Egyptian integrated photovoltaic and storage power station is a major highlight of China's new energy enterprises' "going global". This project not only demonstrates the technical and management capabilities of Chinese enterprises in the international market, but also contributes to the "China Plan" for the global green energy transition. Through this win-win cooperation model, China's new energy companies are gradually becoming important promoters of the global energy transition.
