Egypt’s leading wire and cable manufacturer El Sewedy Electric is to continue executing the first phase of feed-in tariffs projects despite the appalling terms of electricity ministry.
A senior source at the company told Amwal Al Ghad Wednesday that El Sewedy Electric is set to discuss mechanisms of overcoming obstacles facing firms in general in feed-in tariffs projects.
El Sewedy Electric signed an agreement with Egyptian electricity ministry on establishing solar power plant in Benban, Aswan with total capacities of 50MW through feed-in tariffs system.
In 2014, the Egyptian ministry has announced feed-in tariffs for electricity generated by solar and wind sources as part of the government’s efforts to increase the country’s energy capacity in the face of serious power shortages and recent power outages.
It is set to allow the government to guarantee a certain price for energy produced to encourage investment in the renewable energy sector.
In contrast with El Sewedy Electric situation, a massive number of firms decided to withdraw executing the feed-in tariffs projects due to the dispute with electricity ministry.
In August, Electricity Minister Moahmed Shaker met with investors and heads of firms to try to solve the dispute the over feed-in tariffs projects.
The ministry defended its stance on arbitration, i.e. the project is Egyptian, implemented on Egyptian land, thus there is no reason for foreign intervention.
Additionally, the ministry also mandated that solar power firms should provide around 85 percent of the finance from foreign banks while the other 15 percent to be provided by local banks.