Construction companies decided to withdraw their offers for renewable energy projects. The companies cited that their costs have almost doubled due to the devaluation of the EGP, reported Al Borsa. Additionally, a number of solar power companies, including Sun Tech, withdrew from the new and renewable energy purchasing Feed-in Tariff (FiT) program and requested tariff changes to align with new USD exchange rates.

Solar companies said that contractors are citing a significant increase in the selling pricing of building materials services such as  concretes, sanitary installation, diesel fuel, and transportation as the major drive behind the jump in costs. Furthermore, project owners fear additional expenses association with customs and tariffs. Cairo Solar’s CEO, Hisham Tawfik, stated that construction contractors refuse to proceed with any project with adjusting their rates to no less than $0.84 per watt.

Accordingly, renewable energy firms have started to revise their feasibility studies as their plans were based on an USD exchange rate of  EGP 8.88.