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Monday, 15 January 2018

Negotiations with Siemens over 2 GW wind project stalled again due to FiT disagreements

Meanwhile, negotiations between Siemens and the Electricity Ministry over a 2 GW wind farm have again come to a grinding halt after two months of talks failed to move the project forward, sources close to the matter tell Al Borsa. The project had been put on hold back in May pending further negotiations with Siemens to lower the feed-in tariff (FiT) to around USD 0.04 per kilowatt from a current EUR 0.053 (USD 0.0593), which the company has refused to do, insisting that the tariff should be raised instead. The Electricity Ministry is now considering one of three viable options: Bringing the wind farm’s capacity down to 200 MW from 2 GW and reducing the FiT to match that agreed on with the Toyota consortium for the 250 MW Gulf of Suez wind farm project; postponing the project for now; or canceling it altogether, which is highly unlikely, the sources said.

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