Egypt is planning to launch a Feed-in-Tariff (FiT) program for waste-to-energy projects within December as the cabinet’s economic committee has completed its review of the program’s terms and conditions, reported Al Borsa.
The waste-to-energy FiT rate was set at EGP 0.92 per kWh. The Minister of Environment, Khaled Fahmy, stated that the Ministry of Finance requested to review the final draft of the FiT. He added that the government has taken into consideration inflation rates in calculating the proposed tariffs.
The Minister of Electricity, Mohamed Shaker, stated that his ministry will cover EGP 0.42 of the purchasing tariff, while the Ministries of Environment and National Development will pay the remaining amounts.
This news comes as a number of waste-to-energy plants and compost facilities halted their expansions plans in the local market due to USD shortage and the every increasing exchange rates on the parallel market. Accordingly, Empower’s CEO, Hatem El Gamal, stated that the company had encountered huge losses due to the instability of foreign exchange rate. He added that the Central Bank of Egypt (CBE) should work on solving this problem, informed Al Borsa in a separate report.