FiT Investors to Bear Increased Construction Costs

FiT Investors to Bear Increased Construction Costs

The Egyptian Ministry of Electricity aims to increase costs sharing percentages  associated with solar energy Feed-in-Tariff (FiT) by 30% after EGP devaluation, reported Al Borsa.

An official at the Ministry of Electricity stated that FiT investors had paid two installments of the cost sharing agreement, with only one installment is remaining to be settled. Yet, after the EGP devaluation, prices of building materials and the cost of construction had increased. Thus, the ministry will not cover the increased amounts and will apply the increase to the remaining installment owed to the Egyptian Electricity Transmission Company (EETC) within January 2017.

The cost sharing agreement is one of the five deals signed by new and renewable energy investors under the umbrella of the FiT program. The agreement includes sharing the cost of linking solar power plants to the national grid. It also includes infrastructure work executed in Benban Aswan, such as the construction of perimeter fences and water wells.

Sarah Samir 3420 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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