(MENAFN - Daily News Egypt) The Egyptian Electricity Transmission Company (EETC) signed three energy purchase agreements with three solar power companies—Nubian, ARC and Irena—with investments worth $250m and at a production capacity of 125 MW, according to sources in the Ministry of Electricity.
The sources said that the three companies have submitted all required documents of the energy agreements, according to the conditions and controls of the first phase of the feed-in tariff. The companies agreed with the Ministry of Electricity officials to financially close the projects on Wednesday and Thursday.
The signing ceremony of the power purchase agreements were witnessed by Gamal Abdel Rahim, head of EETC; Mohamed Salah Sobky, head of New and Renewable Energy Authority (NREA); Lamia Youssef, head of the feed-in tariff department; and Mohammed Yamani, spokesperson for the Ministry of Electricity.
The sources pointed out that Nubian and ARC are affiliated with the Desert Technologies Company, which qualified among the 136 companies and alliances that applied for renewable energy projects. They belong to a US-Saudi-Italian alliance, while Irena belongs to an Egyptian-Iraqi alliance.
Nubian and ARC will establish two solar power stations in Banban in Aswan, based on the feed-in tariff system and the controls of the first phase of the project, with a production capacity of 50 MW for each. Irena will establish another solar power station in the west Nile area, with a production capacity of 25 MW.
According to the sources, the three companies have agreed on the terms and conditions of the first phase, which were determined by the Ministry of Electricity. The companies are supposed to provide 85% of financing in foreign currencies and the remaining 15% in Egyptian pounds, while the tariff's price stands at 14.32 cents.
The Feed-In Tariff Law, which was endorsed by the cabinet in September 2014, stipulates that the companies should implement the financial closure of projects on 27 October, while the second phase of the project will begin on 28 October.
The sources disclosed that CANARD, Mag, and Dahma companies will sign the power purchase agreements on Monday, while Scatec Solar Company and the Total-Beltone Alliance seek to complete the required procedures of the first phase to sign the power purchase agreement within hours.
The companies that implemented the financial closure and signed the purchase agreement are Infinite Solar, Irena, Alfa, Mag, Nubian, and ARC.