Egypt’s power regulator has hinted it is close to fixing feed-in tariffs for renewable energy to drive interest and investment in the underdeveloped sector, according to local media sources.
Hafez El-Salmawy, managing director of Egyptian Electric Utility and Customer Protection Regulatory Agency, said: “Feed-in tariffs will be implemented soon but I cannot tell exactly when.”
Mr El-Salmawy said the first phase of introducing the tariffs would see the government fixing a special price for investors that will be reflected on consumer prices, reported Aham Online.
The comments come as Egypt has witnessed increasingly frequent electricity cuts during the past few years with some Cairo districts seeing up to six blackouts a day during peak hours this summer.
Experts and officials are blaming a rise in consumption, a lack of maintenance on the power grid and a fuel shortage.
Egyptian President Abdel-Fattah El-Sisi said that electricity production and distribution were not developed enough to keep up with consumption.
He estimated that Egypt needs 2,500 MW annually for the next five years to meet rising demands, at a total cost of US$12.5 billion.