25 COM­PA­NIES CLOSE TO COM­PLETE FI­NAN­CIAL CLO­SURE OF SO­LAR EN­ERGY PROJECTS

The Daily News Egypt - - Front Page - By Mo­hamed Farag

Mo­hamed El-Khayat, chair­per­son of the New and Re­new­able En­ergy Author­ity (NREA), said that 25 com­pa­nies are close to com­plete the fi­nan­cial clo­sure of so­lar en­ergy projects in the sec­ond phase of the feed-in tar­iff sys­tem.

He told Daily News Egypt that the in­di­ca­tors of the projects look very promis­ing, where 22 com­pa­nies signed the land use rights agree­ment with NREA and 20 com­pa­nies signed the power pur­chase agree­ment with the Egyp­tian Elec­tric­ity Trans­mis­sion Com­pany (EETC).

He ex­plained that com­pa­nies still have time to com­plete the fi­nan­cial clo­sure of their projects un­til 28 Oc­to­ber, not­ing that the in­ter­na­tional bank­ing in­sti­tu­tions sup­port the feed-in tar­iff pro­grammes, where the price set for the pur­chase of power are very good.

For­eign in­sti­tu­tions agreed to to fi­nance part of the cost of the project, in­clud­ing the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment and the In­ter­na­tional Fi­nance Cor­po­ra­tion.

The Govern­ment launched the Re­new­able En­ergy feed-in tar­iff pro­gramme in 2014 to es­tab­lish projects to pro­duce elec­tric­ity from wind farms and so­lar power plants with a to­tal ca­pac­ity of 4,300 MW, with in­vest­ments of $7bn. This in­cludes 2,300 MW from so­lar power, in­clud­ing 300 MW from plants that pro­duce less than 500 KW. In ad­di­tion, the pro­gramme in­cludes 2,000 MW from wind farms.

Three com­pa­nies have man­aged to sign the power pur­chase agree­ment in the first phase of the feed-in tar­iff pro­gramme. The amended prices in the sec­ond phase have be­come ef­fec­tive from 28 Oc­to­ber 2016 at a rate of 8.40 cents per Kw/H.

The EETC will buy the power pro­duced from so­lar power plants for 25 years.The ar­bi­tra­tion, if arises, will take place in Egypt.

com­pa­nies still have time to com­plete the fi­nan­cial clo­sure of their projects un­til 28 Oc­to­ber

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