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Eight companies apply for electricity production, distribution licenses - Daily News Egypt

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Eight companies apply for electricity production, distribution licenses

Applying companies include FAS Energy, Madkour EPC, Soltage


Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has received eight requests from renewable energy companies to obtain or renew electricity production and distribution licenses.

An official in Egypt ERA said that FAS Energy has applied for a permanent license to produce renewable energy from its solar plant in Benban in Aswan governorate, while Italgen requested renewal of its 320 MW Gulf El Zeit wind farm.

Each of Madkour EPC, Enjaz Power, Soltage, and AbuSuma for tourism development also applied for a license to distribute electricity.

The source said that the applications will be considered during the Egypt ERA’s the board of directors meeting next week.

He added that there are specific conditions under which the Egypt ERA grants, such as licenses, including sufficient production capacity to meet contractual obligations.

Those who will receive distribution licenses shall comply with providing standby capacities to use them when needed to ensure stable operation of the national grid. They shall also prepare and implement the studies and expansion plans, taking into account environmental standards.

They shall undertake periodic and preventive maintenance of the production equipment and facilities according to executive programmes approved by the Egypt ERA.

The companies shall install electricity metres at their expenses to measure load dispatches supplied or exchanged with another company or consumers in accordance with the rules, standards and measurement systems of the contracts.

The official said that the electricity production and distribution are subject to the control of the Egypt ERA, which in turn protects the investments of production and distribution companies, therefore it is not possible to allow establishment of two electricity networks in the same geographical area.

The Egypt ERA also protects consumers from companies’ exploitation or mistakes, such as electricity bills errors and low quality service.

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