RCREEE Participates in the design of Renewable Energy Feed-in Tariff in Egypt

The Regional Center for Renewable Energy and Energy Efficiency (RCREEE) participated in setting up the new Egyptian pricing scheme for electricity generated from renewable resources for households and private sector companies, known as “Feed-in Tariff” (FiT).  RCREEE was represented by Eng. Maged Mahmoud, Head of Projects and Technical Affairs, who has been a member in the committee formed by the Egyptian Electric Utility and Consumer Protection Regulation Agency (EgyptERA) for setting up the FiT. RCREEE provided knowledge on similar FiT systems adopted in the Arab region to support the committee activities.

The new FiT for households and private sector companies was announced on Saturday 20 September, 2014, by HE the Egyptian Minister of Electricity and Renewable Energy. The feed in Tariff comes as a part of the Egyptian government’s efforts to increase the country’s energy capacity in facing power challenges.

Eng. Maged said: “Egypt is the fifth country in the Arab Region to adopt the FiT, which is considered as a very important milestone. This will contribute to stimulate private investment in renewable energy projects, and help increase the share of renewable energy in Egypt’s energy mix.”

The purpose of the FiT for purchasing electricity produced from renewable sources is to encourage private investments in this field, and to help overcome the shortage of conventional sources of fuel. The tariff rate scheme is determined according to system capacity for PV systems and the quality of the wind resource at the site for wind projects. The price also considers funding sources, required operational conditions, and the duration of the contract. The summary below outlines the key features of the announced FiTs. The PPA contracts will be valid for 25 years for PV systems and 20 years for wind energy.

Check the official Feed-in Tariff from here

Solar PV Feed-in Tariff

System Size

Financing Source

Currency

FiT Rate

FiT Review

Residential (<10 kW)

Soft loan (4%) from Ministry of Finance

EGP

0.848

300 MW or 2 years whichever comes first

< 200 kW

Soft loan (4%) from Ministry of Finance

EGP

0.901

200 – 500 kW

Soft loan (8%) from Ministry of Finance

EGP

0.973

500 kW – 20 MW

Domestic and Foreign Financing

USD

0.136 (or equivalent to EGP 0.973 )

2000 MW or 2 years whichever comes first

20 MW – 50 MW

Domestic Foreign Financing

USD

0.1434 (or equivalent to EGP 1.025 )

Wind Feed-in Tariff

  • Two phases: Phase 1 will last 5 years , and Phase 2 will last 15 years
  • Takes into consideration foreign financing
  • FiT rate will be reviewed at 2000 MW contracted projects or 2 years whichever comes first

Number of full load Hours in operation

Phase 1

Phase 2

 

US$/kWh

EGP/kWh

US$/kWh

EGP/kWh

 

2500

0.1148

0.8208

0.1148

0.8208

 

2600

0.1148

0.8208

0.1056

0.7553

 

2700

0.1148

0.8208

0.0971

0.6946

 

2800

0.1148

0.8208

0.0893

0.6383

 

2900

0.1148

0.8208

0.0819

0.5858

 

3000

0.1148

0.8208

0.0751

0.5368

 

3100

0.0957

0.684

0.0893

0.6382

 

3200

0.0957

0.684

0.0833

0.5953

 

3300

0.0957

0.684

0.0776

0.5549

 

3400

0.0957

0.684

0.0723

0.5170

 

3500

0.0957

0.684

0.0673

0.4812

 

3600

0.0957

0.684

0.0626

0.4473

 

3700

0.0957

0.684

0.0581

0.4154

 

3800

0.0957

0.684

0.0539

0.3851

 

4000

0.0957

0.684

0.0460

0.3290

 

             

About the Regional Center for Renewable Energy and Energy Efficiency (RCREEE):

The Regional Center for Renewable Energy and Energy Efficiency (RCREEE) is an independent not-for-profit regional organization that aims to enable and increase the adoption of renewable energy and energy efficiency practices in the Arab region. RCREEE teams with regional governments and global organization to initiate and lead clean energy policy dialogues, strategies, technologies and capacity development in order to increase Arab states’ share of tomorrow’s energy.

For more information about RCREEE, please visit www.rcreee.org