Egypt’s negotiations with Siemens over establishing a 2000 MW wind farm have stopped for the second time after talks held over the last two months did not lead to productive results, governmental sources stated, according to Al Borsa.
Siemens’ main concern towards the project is the feed-in tariff (FiT) rate, which is around $0.038 per kilowatt; same price given to Toyota consortium for the 250 MW Gulf of Suez wind farm project.
The sources pointed out that Siemens insists on increasing the FiT rate, especially after an agreement established two years ago to stabilize it between $0.05 and $0.07 per KW.
The Egyptian Ministry of Electricity and Renewable Energy has now three scenarios to consider, according to the source. First, to decrease the wind farm’s capacity to 200 MW and reduce the FiT to match that agreed upon with Toyota consortium. Second option is postponing the project. Third option would be to cancel the project entirely, which is highly unlikely.
The deal was initially made during the Egypt Economic Development Forum (EEDF) in Sharm El-Sheikh in 2015. Talks came to halt for the first time in December 2016 over the same issue, governmental sources previously told Al Borsa.
