Egyptian Electricity Holding Company sent a notice of deadline for October 8 in order for investors to decide whether to sign phase II of the Feed-in-Tariff (FiT) program for the country’s renewable energy projects, reported Al Borsa News.
The ministry of electricity offered three possible choices for the power purchasing agreements, the first is to proceed with the second phase at the same terms of the first phase of the FiT, including the 85% foreign funding clause for solar projects and 70% for wind projects, with a stipulation that such projects must complete financial closures by October 27.
The second option includes new payment terms and having disputes solved through Egyptian Arbitration in front of an international tribunal, while the third option is to terminate the agreement and refund payments.
Sources at the Ministry of Electricity stated that Al Fanar, Infinity Solar, and Summit Egypt will sign the second phase of the agreement, in accordance with the terms and conditions of the first phase and with the specified tariff of $14.32, after they complete the financial closure before the end of October. The three companies are expected to choose the first option and thus arbitration in case of disputes will take place in Egypt, according to Daily News Egypt.