Egypt reveals feed-in tariffs for renewable energy

Egypt's cabinet approved new feed-in tariffs for renewable energy production, announced electricity minister, Mohamed Shaker, at a press conference on Saturday.

Feed-in tariffs will allow the government to guarantee a certain price for energy produced to encourage investment in the renewable energy sector, said Shaker.

Commercial and household producers will supply the government, which will redistribute electricity through the national grid, he explained.

Tariffs will depend on production categories, LE0.848 for each kilowatt (kW) per hour produced by households, LE0.901 for commercial producers of under 200 kW, and LE0.973 for producers of 200 – 500 kW.

Because large-scale projects are expected to resort to foreign financing for lower costs, their tariff rates were calculated in US dollars.

Projects producing 500 KW – 20 Megawatts (MW) will be paid 13.6 cents per kilowatt per hour and those producing 20 – 50 MW will be entitled to 14.34 cent per kilowatt per hour.

These will be paid in domestic currency according to the exchange rate at the time of payment, said the minister.