The Egyptian Electricity Transmission Company (EETC) will request each solar energy investors to repay the EGP 10b third installment of the cost sharing agreement in January, reported Daily News Egypt.
Under the terms cost sharing agreement, all firms that have secured land for the construction of a solar energy plant in Banban have also paid an estimated EGP 20m of the cost of connecting generated electricity to the national grid. The total value of connecting the power plants to Egypt’s infrastructure is EGP 32m for each company, with an additional 12.5% in other expenses.
This came as sources at the Ministry of Electricity and Renewable Energy stated that EETC signed contracts with the Electric Power Systems (EPS) in order to write reports to explain the construction status of four plants that are meant to transfer the energy produced from solar plants planned to be built in Banban, Aswan. These reports are scheduled to be completed by early January. The engineering consulting office will evaluate the Banban, Aswan plants then the evaluation reports will be presented to investors.
The cost sharing agreement is one of the five deals signed by new and renewable energy investors under the umbrella of the Feed-in-Tariff (FiT) program. The agreement includes sharing the cost of linking solar power plants to the national grid. It also includes infrastructure work executed in Benban Aswan, such as the construction of perimeter fences and water wells.