Electricity Ministry Pays EGP 19.5 Million to Cairo Solar

Omar Salem

Hisham Tawfik, Chairman of Cairo Solar, one of the companies that withdrew from the feed-in tariff projects, stated that the Ministry of Electricity transferred the company’s dues last Sunday without any deductions.

Tawfik told Al-Mal that the total amount received by the company was approximately EGP 19.5 million, which represents two installments of the cost-sharing fees. These fees cover the connection of the project to the national electricity grid and had previously been paid to the Egyptian Electricity Transmission Company.

He also mentioned that the company received the project’s bank guarantee, valued at $30 million. He emphasized that Cairo Solar has officially ended its involvement in the feed-in tariff projects after announcing its withdrawal last September. The decision was made in response to the stringent conditions imposed by the Ministry of Electricity, including the requirement for investors to secure foreign financing and the stipulation of local arbitration for disputes. These conditions led to financing entities withdrawing from the projects.

The Ministry of Electricity has given the 136 companies and consortiums qualified for the first phase of the feed-in tariff projects until October 21 to respond with official letters. The options include signing the purchase agreement if financial closure is achieved, participating in the second phase of the projects, or withdrawing entirely.

In August 2014, the Ministry of Electricity launched renewable energy projects with a capacity of 4,000 MW (wind and solar) under the feed-in tariff system. A total of 136 global and local investors qualified for the projects. The Ministry committed to purchasing the energy produced at a rate of 102 piasters per kilowatt-hour for solar energy and 83 piasters per kilowatt-hour for wind energy.