Infinity Solar and the Egyptian Electricity Transmission Company (EETC) have signed an agreement to purchase the former’s renewable energy.
Director of Infinity Solar, Nayer Fouad, said that the company agreed with the German bank LP to finance the required foreign funding for the solar power plant by 85% of the total cost. Hermes cover (Hermesdeckung in German) also agreed to insure and guarantee the project to bear its risks. The remaining 15% of the funding will be secured from the Arab African International Bank.
Fouad told Daily News Egypt that the company will present its financial closure statement to EETC on Wednesday, thus finalising all necessary measures in accordance with the regulations of the first phase of the feed-in tariff (FIT) project.
He explained that the project will cost up to EGP 150m. The German component amounts to 70%, in addition to the insurance company, which shall receive a check of $25m for insurance throughout the duration of the contract.
Infinity Solar has been able to fulfill all the conditions and regulations of the first phase of the FIT projects set by the Ministry of Electricity, including the provision of 85% of cost from foreign banks and a price of 14.32 cents per kilowatt.
The company was one of 136 that qualified for establishing renewable energy projects to produce energy from wind farms and solar plants amounting to 4,300 MW.
Infinity Solar is only the second company to sign the agreement with EETC.
According to the renewable FIT Act endorsed by the cabinet in September 2014, companies must complete financial closure before 27 October. The second phase of the project is set to begin on 28 October.