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Solar power investors to pay EGP 700m from cost-sharing agreement settlement with EETC - Daily News Egypt

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Solar power investors to pay EGP 700m from cost-sharing agreement settlement with EETC

Remaining sums most likely to be paid on instalments, according to industry sources


The Egyptian Electricity Transmission Company (EETC) has agreed with solar energy feed-in tariff investors in Benban, Aswan, for the latter to pay EGP 700m of the sums to settle the cost-sharing agreement.

Informed sources told Daily News Egypt that Sabah Mashaly, EETC chairperson, called on investors to pay EGP 700m from the cost-sharing settlement to the companies executing infrastructure and transformers. Another meeting will be held again after paying these dues and ending the crisis.

The sources pointed out that Mashaly stressed the commitment to the needs of the electrical grid, EETC’s commitment to buy all energy produced from the solar power plants, in accordance with the power purchasing agreements signed with all the companies. The companies are also obliged to pay for linking the projects on the electric grid.

The sources added that the investors are still studying the payment of these dues after discussing the matter with the legal consultancy office. Sources revealed that the companies are likely to pay EGP 700m, and then pay the remaining balances over instalments. The total cost is split among 32 companies, some of them have entered commercial operation, and others are still in the stages of performance testing.

The sources added that Mashaly stressed the importance of adhering to technical procedures and requirements for connecting the stations on the electrical network, as well as the commitment to have a power factor – which measures how effectively electrical power is being used – of 95%, in accordance with the contracts signed with investors.

The EETC had asked investors in May to pay EGP 2.4bn to settle the cost-sharing value, then reduced the amount to EGP 1.9bn.

The cost sharing agreement is one of the five agreements signed by qualified investors to establish renewable energy projects according to the feed-in tariff system. The agreement includes participating in the cost of linking the power plants to the national electric grid, along with the basic infrastructure in the area.

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https://wwww.dailynewssegypt.com/2019/09/15/solar-power-investors-to-pay-egp-700m-from-cost-sharing-agreement-settlement-with-eetc/
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