In North Africa, the list of firms withdrawing from Egypt’s 2014-implemented feed-in tariff (FiT) scheme is growing, according to Daily News Egypt.
The local media reported on Wednesday that the step-down of local independent power producers Nubian and Wadi Degla has brought the total number of companies to 19.
Despite having acquired land, Nubian, which planned a 50MW solar project, and Wadi Degla, with its 20MW solar scheme, will not complete their project developments, sources at the ministry of electricity told media.
The two parties will also not be liable to pay any ‘adandonment’ fees, the Daily newspaper reported.
FiT projects don’t prove favourable
According to media, a ministry official confirmed that as of Thursday last week, 17 companies had withdrawn from FiT projects.
Among these include Orascom Telecom-Egypt, Enel Green, Lekela Power and Building Energy.
The objective of the FiT programme was to add 2.3GW of solar and 2GW wind capacity to the national grid.
In May 2015, the country had already signed seven Memoranda of Understanding (MoUs) under the government’s FiT scheme for the generation of 320MW from solar and wind projects.
The MoUs, with an estimated value of $500 million, were signed with five companies from Egypt, Saudi Arabia and the United Arab Emirates for the generation of 220MW of solar and 100W of wind, online news portal PV Magazine reported at the time.
All seven projects are located on government land, with solar projects to be located in Binban in the Ar Riyāḑ Province in Saudi Arabia and Aswan, a city in the southern region of Egypt. The wind farms will be developed in Zafarana on the Gulf of Suez.