Following on from the press conference held by the Ministry of Electricity & Renewable Energy details of which were reported in our bulletin on the 12th September, the Egyptian Electricity Holding Company (EEHC) has further clarified the process for Phase 1 and Phase 2 of its 4.3 GW FiT program.

EEHC has written to Phase 1 developers requesting that they notify EEHC of their intention with respect to their current projects between the following options by the 7th October 2016 (revised from the 27th October as mentioned in our previous bulletin):

  1. Continue with the Phase 1 FiT on the basis of reaching financial close by 27th October 2016
  2. Transition to the Phase 2 FiT on the basis of the revised tariffs (set out below) and criteria (as set out in our previous bulletin)
  3. Withdraw from the FiT programme and recover costs paid through the Cost Sharing Agreement

It is important to note that EEHC is not a party to the Cost Sharing Agreement or the MoU and technically the terms of those agreements still stand in so far as they relate to Phase 1.

EEHC state that under option (c) there will be no termination fee payable under the Cost Sharing Agreement, however, the letter is silent with regard to any termination payments that might be due under the MoU with NREA.

With respect to Phase 2, it is clarified that whilst the venue of arbitration will be in Cairo, the “seat” may be abroad. However, the location for the seat has not been specified and it is not yet clear when Phase 2 project documents will be made available for review.

Purchase prices of energy produced from solar energy projects

Project Description

Feed-in tariff

Residential

102.88 (Piasters / KWh)

Non-residential, with capabilities less than 500 KW

108.58 (piaster / KWh)

Projects from 500 KW to less than 20MW

7.88 (US $ cents /KWh.)

Projects from 20 MW and up to 50 MW

8.40 (US $ cents /KWh.)

Purchasing prices for energy produced from wind energy projects

Working hours at the maximum capacity of the station

The purchase price of energy over the lifetime of the project

(US $ cents / KWh)

2500

7,96

2600

7,65

2700

7,37

2800

7,11

2900

6.86

3000

6,63

3100

6,42

3200

6,22

3300

6,03

3400

5,85

3500

5,69

3600

5,53

3700

5,38

3800

5,24

3900

5,10

4000

4,97

4100

4,85

4200

4.74

4300

4,63

4400

4,52

4500

4,42

4600

4,33

4700

4,23

4800

4,15

4900

4,06

5000 and above

4,00

Further information on how to develop renewables in Egypt is contained in the Eversheds Guide to Renewables in MENA. Click here to request a copy.