The Egyptian ministry of electricity is getting ready to present Cabinet with a memorandum that ropes the development of the renewable energy sector.
According to Government sources, the memo consists of a report of the present excess of generated electricity, which totals to 4,000MW a day.
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In addition, the paper challenges the most recent deliberations concerning the Gulf of Suez wind farm, which will be put into operation by Toyota alliance, and the requests issued by financiers around the renewable energy feed-in tariff ventures.
Corporations involved in the following phase of the feed-in tariff have according to sources, filed proper requests to the New and Renewable Energy Authority (NREA) to make improvements on the solar energy projects tariff.
In addition, the investors have insistently pointed out that “they would like to decrease the specified worth for land use by approximately 1% of the generated energy, and eliminate the value of cost-sharing connected to road works and transformer stations.
“The financiers hope to modify the structure of payment in the solar energy tariff, which is connected to fixing 30% of the tariff value at the price EGP 8.8 to the US dollar. The new modification will be based on the dollar exchange rate on the owed date of repayments,” reported the press
According to media, the memo consists of investor announcements of the fiscal models of the companies that have been accepted, so as to begin implementation.
The Ministry of Electricity sent contracts and agreements signed with financiers in the initial phase of the feed-in tariff to the cabinet a week ago for consent, but the cabinet had not accepted it so far.
According to sources, the memo notes that holdups in contracting new renewable energy projects are owing to the national grid’s failure to accommodate the designed production capacity, adding that the current infrastructure requires improvement.
