Egypt’s New and Renewable Energy Authority’s (NREA) CEO, Mohamed El Sobky, stated that the Egyptian Cabinet has approved Paris as a seat for international arbitration in phase II of the energy purchasing Feed-in-Tariff (FiT) program, reported Al Mal.

He added that the devaluation of the EGP represents an additional risk to FiT project. However, it’ll will also encourage the inclusion of local components, as Egypt stipulated that 30% of FiT phase II projects be sources locally.

By Finalizing FiT phase II arbitration, together with liberalizing the foreign exchange market, the government has addressed investors’ concerns that came up during phase I of the program. Accordingly, El Sobky added that 9 companied have signed for the phase I of the FiT program and their documents are currently under review. Moreover, all the investors qualified for phase I have the option to move to phase II terms at any time, adding that the government will provide extra facilities for renewable energy investors to increase renewables contribution to Egypt’s energy mix to 20% by 2020.