EGP float weakens appetite for wind farm projects in Egypt
Investor are losing appetite for wind farm projects under the feed-in tariff (FiT) program following the EGP float. The terms for wind farm projects under the second phase of the FiT program are challenging and the costs of building wind farms are high, Infinity Solar HR Director Hisham El Gamal told Al Borsa. The company is currently reevaluating projects for FiT’s second phase and is studying partnering with another firm to reduce cost of studies, he added. The tariffs for wind projects are low compared to the high cost of building materials and a 24 months period to complete studies and building the project, said Desert Technologies head of project development Mohamed El Dal’y said. We had reported previously that the solar power companies had approached the ministry on amending the contracts to account for the EGP float, but the ministry refused. In other FiT news, The Egyptian Electricity Holding Company feed-in tariff (FiT) unit has reportedly delayed announcing the winning companies under the first phase of the FiT program indefinitely to complete revising documents submitted by the applicant companies , Al Mal reports.