Egypt’s New and Renewable Energy Authority (NREA) is preparing to introduce a feed-in tariff for waste-to-energy (WTE) projects, reported The National.
This came out in a joint report from the UK law firm Eversheds and Egypt’s Shahid Law Firm., revealing that NREA is working with the environment and petroleum ministries as well as the Egyptian Electric Utility and Consumer Protection Regulatory Agency in this regard.
They are collectively trying to thresh out a framework over the type of waste to be processed, pricing and bidding requirements.
Phil Hanson, a Dubai-based associate at Herbert Smith Freehills law firm, explained that from the technical perspective the key issue is how to secure the feedstock for waste to energy (WTE).
“Obviously the supply is far more limited than for solar or wind, and any WTE programme would have to be fairly limited in scope compared to solar and wind,” he said. “Egypt would need to work out how to ensure a reliable supply, with either the government or private contractors increasing their collection activities.”
Establishing a clear framework to encourage investment in the renewables sector should be a priority for the government, he explained, adding that “an environment of certainty and clarity” was critical to “enticing investors to get involved in WTE, and indeed all forms of renewables in Egypt”.
For this to take place the “Egyptian government has to work out the correct framework in consultation with all stakeholders and then stick to it”, he insisted.
According to Grand View Research the global WTE market is expected to increase by nearly half, from $25.3bn in 2013 to $37.6 b in 2020.