Egypt has definitively moved on to the next phase of its renewable energy procurement programme. The Egyptian Electricity Transmission Company’s (EETC) invitation to local and foreign developers and investors to submit technical and financial offers to build 600MW of solar PV confirms that no further projects will be develop the Feed-in Tariff programme, other than the 33 solar plants currently planned or under construction at Benban.
This next tranche of solar PV will be developed under a build, own, operate, transfer contract and the invitation to tender suggests that it will be a single plant. The bidder offering the cheapest price per kWh will sign a power purchase agreement with EETC. The project will be constructed in the West of Nile Area, a zone under the authority of the New and Renewable Energy Authority, which occupies a large area within Minya province. Bidders must have implemented at least three 100MW projects. The deadline for submission is 14 January 2018.
In August 2015, EEHC invited companies to prequalify for 250MW of wind, 100MW of CSP and 200MW of PV in the West Nile area. 41 companies were reported to have expressed interest, but none of the projects advanced. Discussions on similar or parallel projects have continued since then. African Energy understands that the authorities have been negotiating with Canada’s Skypower for 600MW of solar PV in the area. The projects which reach financial close will be those which are able to satisfy lenders at the same time as meeting Cairo’s strict expectations on price.
