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Wednesday, 10 October 2018

Government to offer facilitated funding, other incentives for renewable power production

Gov’t unveils new incentives for renewable power industry: The report from IRENA came just one day after the Egyptian Electricity Utility and Consumer Protection Agency (Egyptera) unveiled new incentives for the renewable energy industry, Al Mal reports. In addition to being given priority in connecting to the national grid, renewable energy companies will also be offered land for their projects under usufruct contracts with the same tenor as their power purchase agreements with the government. Under the new guidelines, the state will also be issuing letters of guarantee for any venture that will produce more than 500 KW of electricity.

The Finance Ministry is also pledging to facilitate low-interest household financing for renewable energy installations. The program would offer a 4% interest rate for household projects that produce up to 200 KW of power and an 8% interest rate for those that produce between 200-500 KW. The treasury will mobilize in parallel some EGP 2 bn in initial financing for the development of the nation’s power distribution grid.

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