Feed in Tariff
It is a mechanism to encourage electricity generation from renewable resources. Egyptian Electricity Transmission Company, EETC, and Distributed Electricity Companies shall buy the generated electricity from the producers in a preannounced price. Such scheme shall attract investment through long term power purchase agreements which will be 20 years for wind energy and 25 years for solar energy. Power Purchase Agreement shall differ according to the applied technology, the capacity and site of the plant. In accordance with that, transmission and distribution companies shall buy the generated electricity from both wind and solar in fixed prices. Hence the state shall not bear the subsides of electricity generated from renewable resources, instead the consumer shall pay such amount.
Aims to achieve the capacity of 4300 MW in the period 2015-2017 (2000 MW of solar power stations with capacities up to 50 MW + 300 MW of capacity less than 500 kW) and (2000 MW of energy) Wind), between the first stage.
The Cabinet Decision No. 2532 of 2016 issued on the amendment of the prices of the purchase of electric power supplied to the Egyptian Electricity Transmission Company or the electricity distribution companies from the electricity production stations used for renewable energy sources, which will be contracted in the second phase of the tariff system.