The government has purchased electricity from the private sector for EGP 400m until March 2019.
Sources at the ministry of electricity told Daily News that the Egyptian Electricity Transmission Company (EETC) and electricity distribution companies across the country are committed to repaying the dues of the companies without delays.
The sources explained that the largest value was offered by Infinity Solar, as it sold electricity from its solar power plant of 50MW in Benban, Aswan for EGP 270m, followed by FAS company.
The companies working in solar energy projects in Benban are intensifying their preparations to sell the energy produced from plants to the EETC according to the feed-in tariff system, the sources further elaborated.
A total number of 32 solar energy companies with a capacity of 1,432MW with investments worth $2bn are implementing the projects. They are expected to be completed and connected to the national electricity network by the end of next December.
The EETC buys a single kilowatt produced from the solar energy plants in Benban for 8.4 cents, and the 30% repayment of the tariff’s value is calculated based on the exchange rate of the pound against the dollar at the time the tariff was issued. Meanwhile, 70% of the value of the tariff is based on the exchange rate of the pound against the dollar on the day the payment is collected.
Noteworthy, the Egyptian Ministry of Electricity targets producing 20% of the total energy produced on the electricity grid through new and renewable energy sources by 2022. The percentage will increase to reach 47% in 2037.
Investors praised the commitment of the EETC in repaying the dues without delays.
Taymuor Aboulkheir, investment manager at Infinity Solar, said that the EETC is committed to repaying the dues regularly, as Infinity connected the production of a solar energy plant with a capacity of 50MW, and started selling the production to the ministry of electricity in February.
Moreover, Aboulkheir explained that Infinity plans to implement solar energy plants with large capacities, according to the independent power producer (IPP) system. “Electricity officials have welcomed the offers to inaugurate the projects, and we are awaiting negotiations to start,” he added.