Ten solar energy companies received lands in Benban in Aswan at an area of 9 sq. km to launch power plants to produce electricity from the sun, according to the feed-in tariff system, after the recovery of Zaafarana lands.
Sources at the Ministry of Electricity told Daily News Egypt that the New and Renewable Energy Authority (NREA) conducted delivery and receipt reports with the ten companies in projects’ sites from Zaafarana in the Red Sea to Benban in Aswan. This was based on the investors whom submitted requests to the head of the NREA to transfer the projects’ site after the withdrawal of a number of companies.
The total area of the allocated lands by the state for all new and renewable energy projects is 7,872 sq. km. Lands of the first phase are located at the Gulf of Suez, Kom Ombo, Benban, Fares, and Zaafarana.
The sources said that six companies have applied for obtaining lands to participate in the second phase of the solar power feed-in tariff projects, and NREA will complete its study of the applications submitted by companies within a month.
The work of the second phase of the feed-in tariff projects started on 28 October 2016, and the produced solar energy price was specified at 102.8 piastres per kw/h; capacities less than 200 kw/h specified at 108 piastres; non-domestic sectors at 102 piastres; and 108.58 piastres to capacities less than 500 kw/h.
As for solar energy projects of 500 kilowatts to less than 20 megawatts, the price of the produced energy is 7.88 cents per kw/h, and projects from 20 and 50 megawatts will worth 8.40 cents kw/h.
According to the regulations of the second phase of the new and renewable energy feed-in tariff projects, the investor is obliged to achieve the financial closure of the project within a year at most for the solar energy projects, and a year and a half for wind-powered projects starting from 28 October 2016. The investor is to submit a pledge letter from foreign finders in six months for solar energy projects, and a year for wind-powered projects.
For wind energy projects, 60% of the finances should come from foreign financing resources and 40% from local sources; for solar energy projects, 70% of the financing resources should come from foreign sources and 30% from local sources.
According to the second phase regulations, in case of dispute between the Egyptian Electricity Transmission Company (EETC) and investors, arbitration will take place in Egypt with the possibility of being moved outside Cairo, if both parties agree to do so.