31 companies participate in 2nd phase of feed-in tariff projects with $3bn investments
Thirty-one companies operating in the field of renewable energy are participating in the second phase of the feed-in tariff projects to establish solar and wind projects with a capacity of 1,845 megawatts and investments worth $3bn.
Sources in the Ministry of Electricity said that 23 companies will establish solar plants with a capacity of 1,295 megawatts: 970 megawatts in Banban, 180 megawatts in El-Zafarana, and 145 megawatts in West Nile. Also, eight companies are participating to establish wind plants with a total capacity of 550 megawatts in Gulf of Suez.
The New and Renewable Energy Authority agreed on moving the locations of six companies from El-Zafarana and West Nile to Banban in Aswan. The lands delivered by the investors who withdrew from the feed-in tariff projects will be delivered to these six companies.
According to the execution controls of the second phase of the feed-in tariff programme of the renewable energy projects, 60% of the financing of the wind power projects should be from foreign financing sources and the remaining 40% should be from local financing sources. With regard to the solar power projects, the controls stipulate that 70% of their financing should be from foreign financing sources and the remaining 30% should be from local financing sources.
According to the power purchase agreement, in case any dispute occurs between the Egyptian Electricity Transmission Company and the investors, the arbitration will be in the Cairo Regional Centre for International Commercial Arbitration, with the ability to hold it in Paris upon the agreement of both parties of the contract.