The number of companies withdrawing from the feed-in tariff projects increased to 19, after the exit of Nubian and Wadi Degla.
Sources at the Ministry of Electricity said that the two companies have withdrawn from the first and second stages of the renewable energy feed-in tariff projects. Nubian was going to inaugurate a solar energy plant with a capacity of 50MW, while Wadi Degla intended to establish a solar plant with a capacity of 20MW.
Sabah Mashaly, first undersecretary to the Minister of Electricity for developing political performance and communication, told Daily News Egypt that, as of Thursday, 17 companies have decided to not complete solar and wind plant electricity production projects.
According to sources, the companies include Egyptian companies Cairo Solar, Orascom Telecom-Egypt, and Innovation Unlimited, Emirati company Adenium, Saudi ALJ, and European companies Enel Green Italian, Neon, and Damand Candina Connord Solar.
This list also includes Lekela Power, Nubian, Building Energy, El Serag for solar energy, Solar Direct, EgyEnergy, and Nile Solar Power.
The government launched the renewable energy feed-in tariff programme in 2014 to set up projects for producing electricity from solar and wind plants at a capacity of 4,300MW with investments worth $7bn, including 2300MW for solar projects, and 300MW for plants of less than 500KW, and 2,000MW for wind plants.
The sources pointed out that 56 companies obtained land for feed-in tariff projects, of which 17 companies and alliances have withdrawn from projects. Nine companies signed power-purchase agreements in the first stage of the feed-in tariff, and 30 companies and alliances are participating in the second phase.
The Minister of Electricity announced last month that fines or deductions would not be imposed on companies withdrawing from the renewable energy feed-in tariff projects.
The sources added that a large number of companies have completed their second phase of the feed-in tariff projects, and are studying the feasibility of these projects’ implementation. Once companies complete their financial closure, they will sign the purchase agreement according to the terms and conditions of the second phase of the feed-in tariff.