The government is planning to launch a feed-in-tariff (FiT) program for waste-to-energy projects in December. The news came after the cabinet economic group completed its review of the program’s terms, Al Borsa reports, which set the FiT rate at USD 0.092 per kWh. The outline of the program is now with the Finance Ministry for review, said Environment Minister Khaled Fahmy. The model power purchase agreement would reportedly see the Electricity Ministry pay USD 0.042 per kWh, with the rest covered by both the Environment Ministry and the Local Development Ministry, according to Electricity Minister Mohamed Shaker. Talks are underway to ensure that rate is not fixed and establish provisions which take into account FX costs and inflation, said Fahmy who did not elaborate on the point. A number of waste-to-energy companies, including BioEnergy and Empower, have reportedly put the brakes on expansion plans because of the FX crunch, Al Borsa says.

The Ismail cabinet has also ratified a plan which would see cement companies to rely on waste-to-energy projects for 15% of their energy supply by 2030, said Fahmy. Meanwhile, the International Finance Corporation found that Egypt’s cement producers could use waste-to-energy to power their plants to save USD 51 mn per year, replace 1.9 mn tons of coal, and prevent the release of 3.9 mn tons of carbon dioxide by 2025, in a study titled “Unlocking Value: Alternative Fuels for Egypt’s Cement Industry” (pdf). “The study, the first of its kind in Egypt, found the country produces enough alternative fuels to power the entire cement sector. It included a mapping tool (available at http://arcg.is/1ToAspz) that pinpoints the location of cement plants, sources of alternative fuels, and transport links,” according to an e-mailed press release.

As for solar and wind FiT projects, the New and Renewable Energy Authority and Ministry of Finance have completed drafting the Power Purchasing Agreement (PPA) for phase two, sources at the Electricity Ministry told Al Mal. The PPA has been sent to participating companies, the sources added. The Council of State has given preliminary approval, and the clause on international arbitration has been sent to international lenders for review.