The Egyptian Ministry of Electricity and Renewable Energy asked for $8.5m guarantees from each company in the first phase of renewable energy purchasing Feed-in Tariff (FiT) program, reported Al Borsa. Companies are required to finalize documentation and procedures within 10 working days from presenting their financial closure. Accordingly, EETC will respond to the solar energy companies with an approval or declining during December.
A CEO with One of the solar firms stated that his company has almost finished the ministry’s requirements, including the submission of a letter of guarantee for $7m that was presented to the Egyptian Electricity Transmission Company (EETC), in addition to another guarantee letter worth $1.5m submitted to the New and Renewable Energy Authority (NREA). The company is waiting the EETC’s approval in order to proceed with the financial closure.
The companies that signed the FiT program include Scatec, Infinity Solar, Alef Solar, IRC Solar, Irena, CTIP, and MAG Energy. Those organizations signed the agreement under the terms of the first phase of the FiT program which include securing 85% of the projects’ fund in foreign currency and arbitration in front of Egyptian tribunal in case of dispute.
Sources with the Ministry of Electricity stated that EETC chose to review the offers for a second time before submitting its final decision. They added that in case the offer is declined, the companies have the option to proceed with projects under the terms of the second phase of the FiT program.