The Ministry of Tourism is reconsidering the proportion of new and renewable energy in comparison to total energy consumption in projects on its territories, according to the Minister of Tourism’s energy advisor, Emad Hassan.
Hassan told Daily News Egypt that the ministry had previously specified that a ratio of 24% of energy consumed in projects based on lands owned by the Tourism Development Authority should come from renewable sources, which he described as very high and ill-considered.
He added that the proportions should be at most 10% with allowed future expansion.
The Tourism Development Authority had stipulated the ratio of 24% renewable energy in its terms of allocating lands in 2012.
An official, who requested anonymity, said that the file has stopped completely under the difficulties of investing in the field, despite the high cost of energy from traditional fossil fuels.
He added that the Ministry of Tourism may reconsider freezing the file, especially as the electricity prices are heading towards more hikes as the state obtains a $12bn loan from the International Monetary Fund (IMF), which requires the liberalisation of energy prices over the coming five years.
He pointed out that the authority has spent many efforts with Marsa Alam Investors Association, where the ministry allocated EGP 20m for this purpose. Yet, investors were not convinced to shift to using renewable energy sources.
He explained that investors believe the price of traditional fuel is still cheaper compared to the price of energy produced from solar cells.