Back to the complete issue
Wednesday, 22 February 2017

EETC asks solar power companies to cover increases in infrastructure development costs for renewable energy projects, ready to sign power purchasing agreements

The Egyptian Electricity Transmission Company (EETC) is ready to sign power purchase agreements with renewable energy companies under the feed-in tariff program as soon as they reach financial close, Al Borsa says. The Finance Ministry approved investors’ letters of guarantee on Tuesday, one day after the EETC informed them during a meeting that they would be picking up the bill for 15-20% increases in the costs of infrastructure works being carried out under the terms of their cost-sharing agreement. The exact increase will be specified in letters sent to companies in phases one and two over the next two weeks, but will be no less than 35% according to Borsa. The meeting took place one day after the Electricity Ministry announced it would not be increasing the feed-in tariff as solar power companies had been urging for months. With costs on the rise, 10 solar power companies have relocated their projects from Zaafarana to Aswan’s Benban make use of the government’s cost-sharing agreement with the 23 other companies already at work there and cut the extra time and money needed to build new infrastructure to tie them the national grid, Al Borsa also says. (Al Shahid Law Firm provides a neat breakdown of the meeting’s key points here).

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.