EETC to Increase Cost Sharing Value by 25% for Benban Projects

EETC to Increase Cost Sharing Value by 25% for Benban Projects

The Egyptian Electricity Transmission Company (EETC) decided to boost the value of cost sharing by up to 25% for Benban solar projects for the second time, sources at the company told Al Borsa News.

The investors were informed about the increase and an official letter will be sent to them next week. The companies will have to pay to compensate to this increase before June 2019, the sources explained.

The main reason behind this upsurge is the infrastructure prices increase and the construction of a central station and weight control room.

The cost sharing agreement is one of five agreements signed by potential investors to establish new and renewable energy plants based on the feed-in-tariff (FiT) system and include sharing the cost required for linking the plants that will be established to the electricity national grid, as well as the infrastructure costs in Benban and the costs for guarding and water wells.

According to the agreements the investors pay EGP 3,100 per 1 megawatt hour (mWh) for roads construction and EGP 583,000 per 1 mWh for linking solar plants to transformer stations.

The investors were informed of an increase in the cost sharing value in 2016 after the Central Bank of Egypt (CBE)’s decision to float the Egyptian currency.

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Sarah Samir 3515 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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