The Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker, stated that the ministry will not reprice its contracts with the renewable energy companies under the energy purchasing feed-in tariff (FiT) program, as a number of investors requested to increase FiT rates, reported Al Borsa.
Shaker clarified that 30% of the stated tariff is calculated based on a EGP 8.88 exchange rate against the dollar, with the remaining 70% calculated on the official FX rate that is announced by Egypt’s Central Bank on the day payment is due.
In related news, the Egyptian Ministry of Electricity aimed to increase costs sharing percentages associated with solar energy Feed-in-Tariff (FiT) by 30% after EGP devaluation. An official at the Ministry had stated that FiT investors had paid two installments of the cost sharing agreement, with only one installment is remaining to be settled. Yet, after the EGP devaluation, prices of building materials and the cost of construction had increased. Thus, the ministry will not cover the increased amounts and will apply the increase to the remaining installment owed to the Egyptian Electricity Transmission Company (EETC) within January 2017.