A consortium of major Egyptian developers is planning to install four solar stations with a capacity of 50 megawatts each, reports ahramonline.
It is estimated that each station will cost $90-$100 million with an expected rate of return of 14 percent.
The consortium is comprised of three local banks, two local companies and two international companies, already forwarding an offer to the Ministry of electricity.
Currently, Egyptian ministry is accepting offers by investors to produce electricity through wind or solar energy.
Recently, Egypt’s cabinet approved feed-in tariffs for renewable energy production, enabling solar energy producers to sell electricity to the government.
OneraSystems, one of the investors along with its partners can sell the electricity at 14.34 cents per kilowatt per hour for the maximum production tranche of 50 mW.
The consortium is not expecting to have all four stations approved as there are other bidders also and the Ministry of Electricity is only accepting offers to produce a total of 2000 mW in renewable energy.
Land will be given to private investors through agreements at competitive prices. For solar energy projects, land will be offered for 25 years whereas wind energy projects will have 20 years of land use.
Egypt has been going through an energy crisis for almost four years, an issue that recently elected President Abdel-Fattah El-Sisi plans to solve by encouraging investment in electricity production.
Sabeena Wahid
editor@greentechlead.com