The Egyptian government will auction renewable energy plants after the end of the second phase of the feed-in-tariff (FiT) scheme, Minister of Electricity Mohamed Shaker said during an event organized by the British Egyptian Business Association (BEBA).
Under the first phase of the FiT scheme, the tariff for large-scale solar facilities is USD 0.143 (EUR 0.13) per kWh.
The Minister of Electricty and Renewable Energy (MOERE) has announced that, on 28 October 2016, a second phase (Phase Two) of the feed-in tariff (FiT) programme will commence.
At EGP 0.92 per KW, prices will be linked to the inflation rate and land will be provided on a usufruct system for 20 years
The first phase of this initiative will enable the Ministry of Electricity and Renewable Energy to procure 300MW, through the feed in tariff system. According to media, the second phase will increase to 1,000MW.
The country is preparing to introduce a feed-in tariff for such projects said Mohamed El Sobki, executive chairman of Egypt’s New and Renewable Energy Authority, according to a joint report from the UK law firm Eversheds and Egypt’s Shahid Law Firm.
Cairo has therefore decided to introduce feed-in tariffs for renewable energy projects. Under the new system, private companies will receive a fixed tariff for the power they produce from renewable resources.
Excitement in the renewables industry has been focused on Egypt since the announcement of the 4,300MW feed-in tariff scheme in 2014.
Egypt’s renewable Feed In Tariff (FiT) continues to take shape, albeit at a slightly reduced speed than expected earlier. Happily, the additional time appears to be being used to respond to constructive comments from developers and other stakeholders.
In late 2014, Egypt announced a feed in tariff (FiT) in order to implement this plan. FiT’s have been successfully implemented in other countries to swiftly ramp up renewable power development. They have the advantage to the developer of creating certainty and not requiring a risky competitive tender process.