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Government sets max price energy recycling at 135 piasters - Daily News Egypt

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Government sets max price energy recycling at 135 piasters

New prices officially approved within days, says Fahmy

The Ministry of Electricity has set the maximum price for buying recycled energy at 135 piastres per kWh from recycling projects.

On Sunday, the Ministry of Environment sent a memo to the Ministry of Electricity on bids from investors wishing to implement projects to produce energy from waste, government sources told Daily News Egypt.

The sources added that the Ministry of Electricity will pay the value of the energy purchased from investors at the price of electricity sold to consumers of the highest consumption segment, at 135 piastres per kWh. Governorates and the public budget will bear future increases, should the prices of energy rise.

The government committee tasked to study the tariff on the purchase of electricity produced from waste met last week with Prime Minister Sherif Ismail, before he travelled to Germany for treatment, to agree on the prices of purchasing energy produced from waste, after consultations with investors.

The meeting was attended by representatives of Empower, Globe Trade Centre S.A., DIC, Community West Bancshares, FMC Corporation, Oceania, and Ebtikar Engineers & Consultant.

“The Ministry of Electricity has decided to purchase all energy produced from waste recycling projects, whether from local or global companies, that wish to set up plants to produce energy from waste,” said Environment Minister Khaled Fahmy. He declined to disclose the value of purchased energy and the shares borne by each party.

According to government sources, the government committee concerned with the study of the tariff set an additional 10% on the total value of selling the capacity paid by the Ministry of Finance to the investor in the recycling and treatment of household waste, because it requires more advanced technology compared to agricultural and animal waste.

The Ministry of Environment refused to bear any rate of tariff because there is no surplus in its allocations to be funnelled to the purchase of energy recycling.

The government announced a guide price to buy electricity produced from waste at 92 piastres per kW. Investors objected and considered the tariff low, and held meetings and discussions between the government and investors resulting in a tariff increase to 121 piastres, but the decision to liberalise the exchange rate prompted investors to demand a higher tariff, especially as the government pays in Egyptian pounds.

Topics: energy price

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