Cabinet to officially approve feed-in-tariff for waste-to-energy projects this week
The Ismail cabinet is set to officially announce this week a standard feed-in-tariff rate of EGP 0.92/kWh for waste-to-energy projects, sources tell Al Borsa. The rate will be pegged to inflation. Under the 20-year agreements, investors will be offered land under a usufruct framework, the source added. EGP 0.42/kWh will be paid by the Electricity Ministry, while the ministries of environment and local administration will cover the rest. Five companies have reportedly entered the bidding for these project. Cabinet had approved the plan in November, as we previously noted. While the source notes similarities between this framework and the solar energy FiT agreements, it did not mention whether parties to the agreements would have recourse to international arbitration. Conflict over international vs. domestic arbitration has derailed phase one of the FiT program for solar power.