The Minister of Electricty and Renewable Energy (MOERE) has announced that, on 28 October 2016, a second phase (Phase Two) of the feed-in tariff (FiT) programme will commence. The programme was initially established in September 2014 (Phase One) and intended to attract direct foreign investment and financing for Egyptian photovoltaic (PV) and wind projects.

However, the MOERE confirmed that only pre-qualified developers under Phase One are eligible to participate in Phase Two. New developers will only become eligible to particpate in a Phase Two wind or PV programme if the 2GW capacity for the relevant programme has not been met by participating pre-qualified Phase One developers. To be eligible for Phase Two, proposed PV projects must comprise 70% foreign investment and 30% Egyptian, whilst wind projects must comprise 60% foreign investment and 40% Egyptian.

Phase Two has seen a number of changes from Phase One including the permitting of offshore arbitration in an attempt to entice multinational lenders to return to the country after Phase One restricted developers to domestic arbitration, although reduced FiT rates may offset the impact of the increased flexibility in dispute resolution.

To help you understand the Phase Two, our experts have produced a summary of key changes between Phase One and Phase Two on the table below:


Phase One

Phase Two


Domestic arbitration only

Domestic arbitration subject to offshore seat upon appeal

Tariff price: 500KW to 20MW PV projects

USD 13.6 cents/KWh

USD 7.8 cents/KWh

Tariff price: 20MW to 50MW PV projects

USD 14.34 cents/kWh

USD 8.40 cents/kWh

Tariff price: wind projects:

USD 11.48 cents/kWh for between 2500 and 3000 operating hours and USD 9.57 cents/kWh between 3,100 and 4,000 operating hours for the first five years. A multitude of different specified tariffs thereafter

USD 4.00 cents/kWh for 5,000 hours or more at maximum capacity (for the duration of relevant PPA)

Payment exchange rate terms: PV

15% at EGP 7.15 and 85% pegged to the USD at the rate applicable on the due date

30% at EGP 8.88 and 70% pegged to the USD at the rate applicable on the due date

Payment exchange rate terms: wind

30% at EGP 7.15 and 70% pegged to the USD at the rate applicable on the due date

40% at EGP 8.88 and 60% pegged to the USD at the rate applicable on the due date

Financial Close

27th October 2016

The FIT rate was subject to reaching financial close by 27th October 2016 and 2GW capacity not being reached by financial close

Within six months from 28 October 2016 commitment letter from foreign lenders to be presented to FIT unit

Financial close to be achieved within one year for PV projects and 1.5 years for wind projects, following 28 October 2016

We would assume that the FIT rate would still be subject to financial close occurring prior to the 2GW capacity being achieved

The MOERE also announced that Phase One developers may request, before 26 October, that they be allowed to quit Phase One and in doing so will be able to recuperate their entire capital, including EGP220k incurred in fees.

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