1. Renewable Energy In Egypt
Ahmed Sallam
Planning Engineer
August, 2017

2. Contents The Legal Framework Renewable Energy Schemes Schemes’ records
Certificate of Origin
FIT
Contents

3. The legal Framework Law No. 203 for year 2014
The Law defines the 4 main schemes to establish Renewable Energy Power Plants.
The law exempted all producers who own power plants with a total installed capacity less 500 Kw from generation license.
Law No. 87 for year 2015 (Electricity Law)
According to new Electricity Law for year 2015, The Egyptian Electricity Regulator shall find ways through which the utilization of the renewable energy resources and energy efficiency mechanisms shall be promoted.

4. Contents The Legal Framework Renewable Energy Schemes Schemes’ records
Certificate of Origin
FIT

5. Renewable Energy Schemes
RE Authority Projects
Commercial Scheme
Feed_in Tariff
BOO
Legal Framewrk
Law No. 203 Year 2014
Regulatory Framework
Issuing the Tariff
The regulatory period
Max Capacity for each category
Approval of Technical Codes
Licences
Procedures for Dispute Resoultion
Currency of Payment
Process
EETS raise a tender
EETC choose the winner
EETC sign a PPA with the Producer
Regulatory Framework
Approval of Technical Codes
Issuing Licences
Procedures for Dispute Resolution
Process
NREA raise a tender for EPC of the power plant
NREA choose the winner
The Winer perform a turnkey project
NREA operate the power plant sfter handing over
Regulatory Framework
Technical Codes
Issuing Licences
Procedures for Dispute Resolution
Regulatory Framework
Approval of Technical Codes
Issuing Licences
Procedures for Dispute Resolution
Issuing the wheeling fees
Approval of network access and network connection agrrements
Activating the Energy Bank

6. Renewable Energy Scheme
(Net-Metering)
In 2013 the Regulatory agency issued a decree that allows the customers to build a small PV power plants to be directly Connected to Distribution Network through Net-metering scheme
The scheme failed to achieve any records because of the issuance of FIT scheme which by definition provides more incentives to the investors
Few months ago, after the devaluation of the local currency which led to a failure of FIT scheme for the small scale projects (< 500 KWp), the Agency updated the net-metering decree that has been issued in 2013 in a way to give more incentive to the customers

7. Contents The Legal Framework Renewable Energy Schemes Schemes’ records
Certificate of Origin
FIT

8. Schemes’ Records

9. Contents The Legal Framework Renewable Energy Schemes Schemes’ records
Certificate of Origin
FIT

10. Certificate of Origin Legal Framework Main Drivers Barriers
Law 87 for year 2015 (Electricity law) gives EgyptERA the right to issue a certificate of origin for each 1 MWH produced by Renewable Energy power plants
Main Drivers
Existence of the legal framework.
Potential Customers
Tourism Sector
Exporting Industrial Sector
Barriers
Lack of Regulatory Framework
Lack of experience in the field of certification
No tracking system the enable EgyptERA to track the certificate starting from the issuance till the cancellation of the certificate

11. Contents The Legal Framework Renewable Energy Schemes Schemes’ records
Certificate of Origin
FIT

12. FIT’s Designing Criterion
Parameter
Value
Eligible Technologies
Wind & PV
Eligible Plants
Top Roof PV< 500 KWP
Medium Scale PV< 20 MWp
20MWp<Large Scale PV < 50MWp
20MWp<Wind< 50MWp
Tariff Calculation Methodology
Return on Equity which differs by technology and size
Financing Mechanism
Burden is distributed equally amongst all electricity Consumer as a part of their electricity tariff
Duration of PPA
Wind: 20 years
PV: 25 years
Priority of grid access
Yes
Grid Connection Cost
The interconnection to nearest point on the grid is bared by the investor while deep reinforcement is the utility burden

13. Risk allocation: Currency Exchange Rate Risk
70 % by the Utility
30 % by the Investor
Get
Pay
Tariff Structure
100% in EP
70% is fluctuating with the fluctuation of the exchange rate
30% considering the exchange rate on the date of FIT issuance

14. Risk allocation: Currency Exchange Rate Risk (numerical Example)
50 MWp
1 KWH
Grid (off-Taker)
8.4 $cent/KWh
30% with 8.88 L.E/$
0.22 L.E
70% with 18 L.E/$
1.05 L.E
1.50LE
Total
1.27 L.E =
7.1 $cent

15. FIT’s Rates Technology Capacity Rate PV Wind Size <500 KWp
Res: 1.03 L.E/KWh (5.7$cent)
Com:1.08 L.E/KWh (6 $cent)
500KWp <Size <20MWp
7.88 $cent / KWh
20MWp <Size <50MWp
8.4 $cent / KWh
Wind
3000 FOH: 6.3$Cent/KWh
3500 FOH: 5.69$Cent/KWh
5000 FOH: 4 $Cent/KWh

16. THANK YOU FOR YOUR ATTENTION!