Some 175 companies have submitted offers to establish renewable energy-based power stations following the introduction of feed-in tariffs, the minister of electricity was quoted as saying by MENA agency on Thursday.
In September the government set feed-in tariffs at which it would buy electricity generated by the private sector via renewable energy projects.
Offers submitted by the companies will be assessed throughout next week based on the companies’ experience in the field of renewable energy and their financial strengths, minister Mohamed Shaker was quoted as saying.
Egypt has been suffering from an acute energy crunch as foreign oil companies suspend extraction works on the back of growing arrears. Parts of the national grid are also in need of renovation.
To mitigate the crisis, the government has started to repay its debts to foreign oil firms, and is now encouraging the private sector to invest in renewable energy.
Successful bidders will be offered land through usufruct 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.
The government is expecting that solar and wind energy projects would generate 8 gW of electricity, investment minister Ashraf Salman said in September.