The Egyptian ministry of electricity is gearing up to present Cabinet with a memorandum that supports the development of the renewables sector.
According to Government sources, the memo includes a report of the current surplus of generated electricity, which amounts to 4,000MW a day, Daily News Egypt reported.
In addition, the document challenges the latest discussions regarding the Gulf of Suez wind farm, which will be implemented by Toyota alliance, and the requests issued by investors around the renewable energy feed-in tariff projects.
Renewables investors submit requests
Companies involved in the second phase of the feed-in tariff have according to sources, filed formal requests to the New and Renewable Energy Authority (NREA) to amend the solar energy projects tariff, Daily News Egypt reported.
In addition, the investors have stressed that “they want to reduce the specified value for land use by roughly 1% of the produced energy, and abolish the value of cost-sharing related to road works and transformer stations.
“The investors seek to amend the structure of payment in the solar energy tariff, which is related to fixing 30% of the tariff value at the price EGP 8.8 to the US dollar. The new amendment will be based on the dollar exchange rate on the due date of repayments,” Daily News Egypt reported.
Securing investor confidence
According to media, the memo includes investor announcements of the financial models of the companies that have been approved, in order to start implementation.
The Ministry of Electricity sent contracts and agreements signed with investors in the first phase of the feed-in tariff to the cabinet a week ago for approval, but the cabinet had not approved it so far.
According to sources, the memo notes that delays in contracting new renewable energy projects is due to the national grid’s inability to accommodate the planned production capacity, adding that the existing infrastructure requires upgrading.