A committee from the Egyptian Ministries of Electricity and Environment will present to the Egyptian Cabinet a proposal to increase power purchasing tariffs for producing electricity from biofuel, reported Daily News Egypt.

Sources with the government stated that the committee proposed raising the tariff from EGP 0.92/kWh after liberalizing the exchange rate in order to encourage investment in electricity production from waste. They further suggested prices to range between EGP 1.02-1.08/KW/h to match the tariff of the renewable energy projects.

The committee suggested the payments to be in EGP and not to be linked to the exchange rate, considering the continuous fluctuations of the rates. Furthermore, the committee suggested contracting with a legal consultant in order to phrase the wording of the waste-to-power energy purchase agreement.

In related news, the Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker, had stated that the Egyptian Government was considering to increase the waste-to-energy purchasing tariff from the specified EGP 0.92 in order to attract more investors. The electricity production tariff from solar plants with capacity less than 500MW was estimated at EGP 1.08, adding that the waste-to-energy tariff should not be less than that.