The Ministry of Electricity signed a cost-sharing agreement with 11 renewable energy companies through the feed-in tariff system on Wednesday.
The agreement includes the cost for linking solar power plants that will be established for the national electricity grid, as well as the infrastructure development in Benban, Aswan.
A senior official with the ministry said 11 companies signed the agreement, while another four missed the ceremony due to urgent circumstances. The ministry will allow them to sign the agreement Thursday.
The companies that signed the agreement on Wendesday include Enel Green, Innovation, EDF, Access Building Energy, Building Energy Alliance, Kom Ombo, Alcom, and Philadelphia.
The official said the agreement provides for the Renewable Energy Authority to build roadways, and for the Egyptian Electricity Transmission Company to build four substations of 22/66/220 KV to assist the projects that are set to produce a total of 1,800 MW.
The Ministry of Electricity signed a cost-sharing agreement with 24 renewable energy companies including TAQA Arabia, Cairo Solar, Orascom, Lekela Power, FES, and Nubian on Tuesday, bringing the total number of the companies that will construct solar power plants to 39, to produce 1,950 MW of electricity.
The source said the companies that signed the agreement will pay 30% of the cost-sharing value within 10 days. It will include the value for the construction of roads and electric substations to transfer energy produced from the Benban stations in Aswan.
The source told Daily News Egypt that investors will pay EGP 3,100 per MWh for constructing roads. They will also pay EGP 583,000 per MWh produced from solar plants to be linked to substations.
The total amount expected from investors is estimated at EGP 350m (30% of the cost-sharing value), which will be paid to the Egyptian Electricity Transmission Company and the Renewable Energy Authority.
Each company is committed to pay EGP 9m out of EGP 27m for linking the production to the national grid, and 12.5% additional costs. The ministry will provide investors with a 30-day grace period, after signing the agreement, to obtain letters of guarantee for the remaining sums.