The Egyptian Ministry of Electricity has signed cost-sharing agreements with 24 renewable energy companies, which have qualified for the feed-in tariff program to build solar and wind power plants, Daily News Egypt reported.
The companies signing the agreement – including TAQA Arabia, Cairo Solar, Orascom, Lekala Power, and others – will pay 30 % of the cost sharing value by December 11th, which will be allocated towards road and electric substation construction.
The Egyptian government estimates the deal investments to amount to EGP 350m in total.
The companies have committed to paying EGP 9m of EGP 27m to link the new stations to the national grid, previously a point of contention, plus 12.5 % of additional costs.
Al-Masry Al-Youm reported that the expected output of the solar stations in this agreement would be 1800MW, while steam-powered production would amount to 650MW.
The feed-in tariff program and other incentives for alternative energy projects are part of the Egyptian government’s efforts to expand Egypt’s domestic energy production, conventional and alternative, to meet domestic demand.
President Sisi has set a goal of 20 % of Egypt’s energy consumption to come from alternative sources by 2020.
According to the 2014 program proposal, 4300MW of alternative power will be built in Egypt between 2015 and 2017.