Italy’s Enel to Exit Egypt’s Renewable Energy Market

Italy’s Enel to Exit Egypt’s Renewable Energy Market

Italy’s Enel Green Power has decided to withdraw its investments from the renewable energy market in Egypt and seek the compensations for the investments that were already injected in the sector, reported Daily News Egypt.

Green Energy Investing wrote that the pierce comes as the international investors disagreed with the Egyptian government over its insistence over domestic arbitration. Also fears of further devaluation of the Egyptian pound was a big factor that led the Rome-based company to retreat from the Egyptian market.

Domestic arbitration was the cause previously cited by Électricité de France (EDF) when it considered pulling out its investments from Phase 1 of the feed-in tariff (FiT) project. EDF’s consideration came after the European Bank for Reconstruction and Development has decided to pull its funding from EDF’s solar power joint venture with Sewedy Electric in Banban.

A consortium of international investors is believed to pull out of the Egyptian renewable energy industry as a consequence of the unattractive prices set by the government and the foreign currency crisis that Egypt is witnessing.

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