Gov’t could agree to international arbitration in FiT agreements -source
Will the government agree to international arbitration clauses in FiT agreements? A source at the New and Renewable Energy Authority (NREA) tells Al Mal the government is considering allowing international arbitration in feed-in-tariff agreements for renewable energy projects following backlash from developers. The “restrictive” contract clauses in the feed-in tariff agreements (domestic arbitration and the requirement that companies seek 85% of their project’s financing from banks abroad) were placed based on advice from national security entities. So far, only two companies have submitted official requests to withdraw from FiT: Abdul Latif Jameel and Enel Green, the source added. (We note that at least six players have said they’re pulling out of phase one: Cairo Solar, ACWA Power, OTMT, SunEdison-Orascom Construction, Scatec Solar, and Engie.) NREA is planning to keep the price of wind power unchanged from phase one at EGP 0.83 per kWh but change that from solar power to EGP 1.02 per kWh.