The Egyptian Electricity Ministry will not increase the Feed-in-Tariff (FiT) for renewable energy projects in the second phase of the program, as solar energy companies had been hoping, Al Mal reported.

Ministry’s officials have reportedly met with 50 of Phase II investors to discuss the obstacles they face with project financing, after they had urged the ministry to amend the tariff to account for increases in construction costs following the EGP floating.

An official source explained that the ministry will not  adjust the tariff, especially since the tariff was taking into account all the changes that have occurred during the last period in the renewable energy market.

In September 2016, the Ministry of Electricity had announced the launch of the Phase II with a total capacity of 4,300 MW and investments of $6b.

Thirty one companies are contributing to Phase II of the energy purchasing (FiT) program with investments of $3b to build solar and wind power plants with the capacity of 1,845 MW.