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Wednesday, 19 July 2017

FiT rates for all subsequent renewable energy projects to be set on a case by case basis

The Electricity Ministry will not be issuing a set feed-in tariff (FiT) rate for waste-to-energy projects and instead will set the fees on a case-by-case basis, said Electricity Minister Mohamed Shaker. It will make its determination based on the offers investors present, he tells Al Borsa. The ministry had initially settled on a FiT of EGP 1.45 per kWh last month, but had received offers from foreign companies at varying rates. As for the FiT program for renewable energy, Shaker said that the program would not be extended past phase 2, adding that the ministry will be issuing tenders on all subsequent solar and wind projects with the FiT being set based on the specific project. The move would in theory give the ministry more flexibility in determining the price it will be pay for these projects. Shaker also noted multilateral finance institutions have committed USD 3 bn in funding to phase 2 of the FiT program. In other ministry news, Shaker reminded us that there is still no date by which the Dabaa phantom project will be signed, sealed and delivered.

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