The Ministry of Electricity sent the agreement of purchasing renewable energy from investors within the second phase of the feed-in tariff project to the German firm Fichtner to review it before it is sent to investors.
Sources in the Egyptian Electricity Transmission Company (EETC) said that amendments to the first phase of the feed-in tariff project were conducted, including the terms addressing arbitration in case of conflict and the method of paying the price of the purchased energy. Also, amendments were conducted to the mechanisms and controls regulating the process of purchasing and selling energy.
The sources added that Fichtner will conclude the review of the agreements in three weeks, while the EETC will send the final draft to investors by the end of the coming month.
The sources also said that the agreement will not be sent to be reviewed by the State Council, especially since the first phase of the feed-in tariff project was approved earlier and the EETC has been granted the authority to conclude the agreements and sign with investors.
The second phase of the feed-in tariff agreement stipulates that 60% of the financing of wind energy projects should be from foreign sources, while the other 40% should be from local sources. They also stipulate that 70% of the financing of solar energy projects should be from foreign sources, while the other 30% should be from local sources.
The agreement stipulates that the payments of the solar energy projects should be as follows: 30% of the tariff’s value is calculated upon a US dollar exchange rate of EGP 8.88, which was the dollar price at the time the tariff was agreed on for the first phase, and 70% of the tariff’s value is calculated based on the dollar exchange rate on the due date of these payments. As for wind energy projects, 40% of the tariff’s value is calculated upon a dollar exchange rate of EGP 8.88, and 60% of the tariff’s value is calculated upon the dollar exchange rate on the due date.
According to the agreement of the second phase of the project, in case of conflict, the arbitration will be in the Cairo Regional Centre for International Commercial Arbitration, with the ability to hold it in Paris if both parties agree.
The sources said that the number of companies and alliances participating in the second phase of the feed-in tariff project is 100, of which 30 companies operate in the field of wind energy and 70 operate in the field of solar energy.