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From Coast to Core: Egypt’s Path to Nuclear Energy with Russia

by | Jul 24, 2023 | Economics, News, Nuclear

  • The El Dabaa Nuclear Power Plant, located in Egypt’s Matrouh governorate, is progressing as planned, with construction of the four VVER-1200 reactors underway.
  • The project, funded in part by a $25 billion Russian loan, aims to achieve a total capacity of 4,800 MW, contributing significantly to Egypt’s energy sustainability.
  • Rosatom, the Russian state-run nuclear corporation, plays a crucial role in supplying nuclear fuel, providing training, and supporting Egypt in infrastructure development and localizing the project.

In a significant stride towards achieving energy sustainability, Egypt’s Minister of Electricity and Renewable Energy, Mohamed Shaker, has provided an update on the construction of the El Dabaa Nuclear Power Plant (NPP). The massive project, located in the Matrouh region along the Mediterranean coast, is making impressive progress and is projected to be completed between 2028 and 2031.

The El Dabaa NPP, a collaborative effort between Egypt and the Russian state-run nuclear corporation, Rosatom, is designed to house four cutting-edge VVER-1200 reactors, each boasting a capacity of 1,200 MW. With the combined output of 4,800 MW, the plant is set to become a cornerstone of Egypt’s future energy mix.

Construction on the El Dabaa NPP commenced in July 2022, with Unit 1 leading the way, followed closely by Unit 2 in November 2022. On May 3, a significant milestone was achieved with the initiation of the concrete pour for the third reactor, after securing the necessary construction permit from the Egyptian Nuclear and Radiological Regulatory Authority (ENRR) on March 29. Meanwhile, plans are underway to initiate the concrete works for the fourth and final nuclear reactor by the end of 2023, as reported by Egypt’s state news agency SIS.

Financing this monumental project involves a total estimated cost of $30 billion, and the Russian government has stepped up to support Egypt with an impressive $25 billion loan, covering 85 percent of the construction and equipment shipping expenses. The loan repayment, carrying a reasonable interest rate of 3 percent per annum, is scheduled to commence in October 2029, allowing Egypt to gradually balance the investment over time.

Rosatom’s role in the El Dabaa NPP extends beyond construction. The Russian corporation has committed to supplying nuclear fuel throughout the plant’s entire lifespan, ensuring seamless operations and energy generation for decades to come. Additionally, Rosatom will offer comprehensive training for personnel, aiding Egypt’s expertise development in nuclear technology, and will provide continuous support in the plant’s operation and maintenance during the initial 10 years of operation.

The El Dabaa NPP project is not only about energy generation but also about knowledge exchange and infrastructure development. Rosatom’s involvement also encompasses assisting Egypt in enhancing its nuclear infrastructure and localizing the project to foster the growth of the country’s nuclear capabilities.

As Egypt progresses with its ambitious nuclear energy plans, the world watches in anticipation. This sustainable and emission-free energy source promises to bolster Egypt’s power capacity significantly, potentially resolving long-standing energy challenges and spurring economic growth. It is evident that the El Dabaa Nuclear Power Plant project represents a vital step in Egypt’s journey towards a brighter, greener, and more sustainable future.

WRITTEN BY

Parker Kleinman

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