The Ministry of Electricity decided to delay the payment due date of the third instalment of the cost-sharing agreement for solar energy projects in Banban, Aswan to next month.
A source at the ministry said investors were due to pay the third instalment of the cost-sharing agreement, worth EGP 9m, this month. However, it was delayed for 30 days after investors asked for an extension to pay the remaining value on the agreement.
The cost-sharing agreement is one of five agreements being signed by investors to establish new and renewable energy projects, in accordance with the feed-in tariff system. The cost-sharing agreement includes participating in the cost of linking solar energy plants that are intended to be launched to the national network of electricity as well as to the cost of the infrastructure in Banban area.
He said investors paid the first and second instalments of the agreement and presented banking letters of guarantee for the remaining amount. This would enable the Egyptian Electricity Transmission Company to pay for the transformer stations that will transfer the produced energy from the projects.
Each company obtained land to establish a solar energy plant in Banban and paid approximately EGP 20m out of the cost of linking their plants to the national electricity network, which amounts to EGP 32m for each company, along with 12.5% in additional fees.
The source also said that Xdegemac Company is completing work on establishing four transformer stations to transfer the produced energy from the solar energy projects in Banban. The amounts paid by the investors through the cost-sharing agreement were used in paying the first instalment to the company.
The company will establish 12 transformer stations with a capacity of 175 Mega Volt Ampere. Nine units will be installed in Banban 1, 2, and 4 stations, while 12 units are being installed in Banban 3 station.