Back to the complete issue
Tuesday, 1 November 2016

Gov’t to adopt waste-to-energy FiT in December

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 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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.