Addition of 2 GW of Solar Energy in Q3 2017

Expectations of a Decline in Solar Energy Feed-in Tariff for Some Projects

Omar Salem and Mohamed Fathi

Hisham Tawfik, Chairman of Cairo Solar, stated that Dr. Mohamed Shaker, Minister of Electricity and Energy, is highly committed to renewable energy, emphasizing that the current activity in the electricity sector is unprecedented.

Speaking at the "Dialogue with the Government" conference organized by "Al Mal GTM," Tawfik revealed that the third quarter of 2017 will witness the addition of 2 gigawatts from solar energy projects under the renewable energy feed-in tariff system.

He added, "Most renewable energy companies participating in the feed-in tariff program have signed the cost-sharing agreement and are working towards financial closure."

Regarding solar energy from rooftop projects, Tawfik explained that only 6 kilowatts have been completed out of the targeted 300 megawatts. He noted, "The feed-in tariff for residential solar energy is low, at around 84 piasters per kilowatt, while project costs have increased due to the rise in the dollar exchange rate and the lack of financing options."

He also pointed out that residential projects face difficulties in obtaining licenses to sell solar energy to government electricity companies.

Furthermore, there are expectations that the feed-in tariff for projects with a production capacity exceeding 20 megawatts will drop from 14 to 10 cents per kilowatt-hour by October, while the tariff for capacities exceeding 500 kilowatts is expected to increase.