Egypt’s Minister of Electricity, Mohamed Shaker, will meet with new and renewable energy investors within the next three weeks to discuss obstacles facing the implementation of feed-in tariff projects, according to Daily News Egypt.
The most notable difficulty facing these projects is the shortage of US dollars, leading to the withdrawal of international funding, such as in the case of the Italian company, Enel SpA, as well as the withdrawal of international institutions funding the projects. SeeNews Renewables reported that Enel SpA had exited the Egyptian market due to domestic arbitration and excessive red tape.
According to the sources, other companies have reduced their project capacities. UAE Axis Power have decreased the Benban solar plant in Aswan to 50 MW, down from 150 MW. On the other hand, companies such as Orascom Telecom Media and Technology Holding are in finance negotiations with five local banks to fund a $100m power plant construction.
Minister Shaker will meet with a quartet committee, including the Heads of the Egyptian Electricity Holding Company (EEHC), the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and the Egyptian Electric Utility and Consumer Protection Regulatory Agency. They will discuss the proposed projects and energy-purchase agreements as well as the state’s position in regards to international arbitration at the Cairo Regional Center for International Commercial Arbitration. The minister will also review the second phase of the feed-in tariff projects with the investors.