The Jordanian Electric Power Company and CTIP have informed the New and Renewable Energy Authority (NREA) of their withdrawal from the solar energy feed-in tariff projects.
In addition to this, five other companies are planning to withdraw from the feed-in tariff projects. This is due to their inability to secure the required funding for the project and complete the financial closure.
Sources close to the ministry disclosed that 20 companies submitted their initial documents to complete the financial closure. They also noted that the financing institutions demanded the companies provide their letters of guarantee again. The companies were doing their best to complete all documents by the due date.
Solar energy feed-in tariff projects
The sources said that the Egyptian Electricity Transmission Company will begin studying the documents submitted by the companies by next week. It will also inform the winning companies within a maximum period of two months.
The other five companies could not secure the required financing for the projects. This means that they will withdraw from the feed-in tariff projects.
Wael El Nashar, chairman of Onera Systems, one of the five companies willing to withdraw from the project, said that his company is still negotiating with the international financial entities to complete the financial closure of a 50MW solar power plant in the second phase of the feed-in tariff project. If his company does not reach an agreement with any of these entities, it will withdraw from the project.
A number of experts believe that the withdrawal of some companies will not affect the feed-in tariff projects. This is because many other companies are capable of completing the financial closure on time.