Egypt: Solar energy feed-in tariff projects facing uncertainty

Egypt: Solar energy feed-in tariff projects facing uncertainty

In North Africa, the Jordanian Electric Power Company and CTIP have informed the New and Renewable Energy Authority (NREA) of their withdrawal from the solar energy feed-in tariff projects.

In addition to this, five other companies are planning to withdraw from the feed-in tariff projects due to their inability to secure the required funding for the project and complete the financial closure, Daily News Egypt reported.

Media cited sources close to the ministry, which disclosed that 20 companies submitted their initial documents to complete the financial closure.

The sources noted that the financing institutions demanded the companies provide their letters of guarantee again, and the companies were doing their best to complete all documents by the due date.

Solar energy feed-in tariff projects

The sources told the Daily News Egypt that the Egyptian Electricity Transmission Company will begin studying the documents submitted by the companies by next week, and it will inform the winning companies within a maximum period of two months.

The News Agency also obtained information that the other five companies could not secure the required financing for the projects, which means they will withdraw from the feed-in tariff projects.

Wael El Nashar, chairman of Onera Systems, one of the five companies willing to withdraw from the project, said that his company is still negotiating with the international financial entities to complete the financial closure of a 50MW solar power plant in the second phase of the feed-in tariff project.

He added that in case his company failed to reach an agreement with any of these entities, the company will be forced to withdraw from the project. 

According to media, a number of experts believe that the withdrawal of some companies will not affect the feed-in tariff projects, as many other companies are capable of completing the financial closure on time.

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