Mohamed El-Khayat, Chairman of the New and Renewable Energy Authority (NREA), said that 25 companies are close to complete the financial closure of solar energy projects in the second phase of the feed-in tariff system.
He told Daily News Egypt that the indicators of the projects look very promising, where 22 companies signed the land use rights agreement with NREA and 20 companies signed the power purchase agreement with the Egyptian Electricity Transmission Company (EETC).
He explained that companies still have time to complete the financial closure of their projects until 28 October, noting that the international banking institutions support the feed-in tariff programs, where the price set for the purchase of power are very good.
Foreign institutions agreed to to finance part of the cost of the project, including the European Bank for Reconstruction and Development and the International Finance Corporation.
The Government launched the Renewable Energy feed-in tariff program in 2014 to establish projects to produce electricity from wind farms and solar power plants with a total capacity of 4,300 MW, with investments of $7bn. This includes 2,300 MW from solar power, including 300 MW from plants that produce less than 500 KW. In addition, the program includes 2,000 MW from wind farms.
Three companies have managed to sign the power purchase agreement in the first phase of the feed-in tariff program. The amended prices in the second phase have become effective from 28 October 2016 at a rate of 8.40 cents per Kw/H.
The EETC will buy the power produced from solar power plants for 25 years. The arbitration, if arises, will take place in Egypt.