The Egyptian Ministry of Electricity and Renewable Energy is considering international arbitration in the second phase of Feed-in Tariff (FiT) program for renewable energy, which will be released by September. This announcement comes amid concerns that international investors and developers will pull out from the program, reported Al Mal News.
A source from the ministry stated that power purchasing tariffs for phase two of the wind energy program will remain at EGP 0.83 per KW. He added that an adjustment will be made for solar energy tariffs to EGP 1.02 per KW.
In related news, solar energy firms were considering withdrawing from the first phase of Egypt’s FiT program due to delays, currency risks, and government’s insistence on domestic arbitration. Developers who pre-qualified for solar and wind projects under attractive FiT schemes said they are wrangling with the government over contract terms, while in turn their efforts to secure financing became more complicated as the ministry insisted that they should secure funding of 85% from foreign banks.