Electricity Ministry ready to contract with investors to purchase electricity produced from waste recycling projects: minister
The Ministry of Electricity has been able to secure electric feed to all citizens, despite the high temperature. It is now working to improve the service and link all consumers to the grid, through an integrated plan that includes developing and upgrading the grid, next to opening the door for Arab and foreign companies to invest.
Minister of Electricity and Renewable Energy Mohamed Shaker said that his ministry is ready to contract with investors to purchase electricity produced from waste recycling projects in order to produce electricity for a price higher than other sources, whether traditional, new, or renewable.
He told Daily News Egypt that there will not be a stable price, but once an economic and financial model is received, there will be a contract, especially since the ministry seeks to diversify the sources of energy production and encourage foreign and Arab countries to invest in the field of electricity and renewable energy.
He explained that the Cabinet has announced a trial price and currently work is taking place to improve the performance of the tariff; however, requests were made to the Ministry of Environment and sent to the Ministry of Electricity to be considered.When all conditions and controls are met, the contract will be signed.
Shaker said that the third phase of the feed-in tariff of renewable energy will not be launched, but other projects will be launched on the other hand using the system of “competitive bidding”, where companies will be asked to make their offers based on the capabilities identified. Contracting will then take place with the company making the offer with the least price.
He explained that the Electricity Ministry will launch several tenders next year to establish solar and wind energy plants, especially since the second phase of the solar energy feed-in tariff is going with steady steps. Companies are expected to present the financial closing models and sign purchase agreements with the Egyptian Electricity Transmission Company in October.