Firms Invest $3b in Phase II of FiT

Firms Invest $3b in Phase II of FiT

Thirty one companies are contributing in phase II of the energy purchasing Feed-in Tariff (FiT) program with investments $3b to build solar and wind power plants with capacity 1,845MW, reported Daily News Egypt.

Sources at the Ministry of Electricity and Renewable Resources stated that 23 out of the 31 companies plan to construct solar power plants with 1,295MW capacities that will be divided into 970MW from Benban plants, 180MW from El-Zafarana, and 145MW from the power plants located West Nile. Additionally the remaining eight companies aim to establish wind farms in Gulf of Suez with total capacity 550MW.

The New and Renewable Energy Authority (NREA) agreed on moving the locations of six companies from El-Zafarana and West Nile to Benban, Aswan. Moreover, investors who have withdrawn from the program have returned allocated land plots. These allocation will be handed to thesis firms.

Under the terms of the second phase of FiT, companies should secure 60% of the financing of the wind farms from foreign financing sources and ensure 70% of the fund of solar plants should be from foreign financing sources. Furthermore, the terms of FiT phase II states that arbitration in case of dispute will be in the Cairo Regional Centre for International Commercial Arbitration, with the possibility to hold it in Paris upon the agreement of both parties of the contract.

Sarah Samir 2904 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.


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