8 Renewable Energy Development in Egypt and Transitioning …
273
The REL envisages the following legal structures for renewable energy
projects
12 ;
• Projects which are tendered and operated by NREA. The essence of
such projects is that NREA, after nominating the successful contractor,
concludes an EPC contract for the creation of the electricity production plant which should be totally state-owned.
Then the electricity generated by such projects would be sold to
EETC for a price proposed by EgyptEra and approved by the Council
of Ministers.
• Projects which are tendered by EETC on a BOO (Build-OwnOperate) basis. The private investor builds, owns and operates the
project and concludes with EETC a long-term Power Purchase Agreement (PPA).
• A private investor can create an electricity production plant and
sell the generated electricity to EETC based on the feed-in tariff
enacted by Prime Minister’s Decree 1974/2014 as amended by Decree
No. 2532 of 2016. The Decrees specified the electricity price (feedin tariff ) generated by renewable energy projects (Wind and Solar)
for a period reaching 20 and 25 years for wind and solar projects,
respectively.
Under this scheme, the state is under contractual obligation during
the whole period of the PPA to apply the feed-in tariff as specified by
any of above-mentioned decrees as the case may be.
According to the REL, a private investor (independent power producer)
is entitled to conclude bilateral agreements to sell power generated from
renewable energy sources directly to consumers using the national grid
against grid access charges payable to EETC and electricity distributor
companies.
It is worth mentioning that, EETC or the Electricity Distribution
Companies are under a commitment to connecting the plants of the
production of electricity from the renewable energy sources to their
networks at the expense of the producer.
12 Article no. “2” of the REL.
273
The REL envisages the following legal structures for renewable energy
projects
12 ;
• Projects which are tendered and operated by NREA. The essence of
such projects is that NREA, after nominating the successful contractor,
concludes an EPC contract for the creation of the electricity production plant which should be totally state-owned.
Then the electricity generated by such projects would be sold to
EETC for a price proposed by EgyptEra and approved by the Council
of Ministers.
• Projects which are tendered by EETC on a BOO (Build-OwnOperate) basis. The private investor builds, owns and operates the
project and concludes with EETC a long-term Power Purchase Agreement (PPA).
• A private investor can create an electricity production plant and
sell the generated electricity to EETC based on the feed-in tariff
enacted by Prime Minister’s Decree 1974/2014 as amended by Decree
No. 2532 of 2016. The Decrees specified the electricity price (feedin tariff ) generated by renewable energy projects (Wind and Solar)
for a period reaching 20 and 25 years for wind and solar projects,
respectively.
Under this scheme, the state is under contractual obligation during
the whole period of the PPA to apply the feed-in tariff as specified by
any of above-mentioned decrees as the case may be.
According to the REL, a private investor (independent power producer)
is entitled to conclude bilateral agreements to sell power generated from
renewable energy sources directly to consumers using the national grid
against grid access charges payable to EETC and electricity distributor
companies.
It is worth mentioning that, EETC or the Electricity Distribution
Companies are under a commitment to connecting the plants of the
production of electricity from the renewable energy sources to their
networks at the expense of the producer.
12 Article no. “2” of the REL.