Developers working on 20MW to 50MW wind projects under Egypt’s feed-in tariff scheme will need more time to finish developing their projects, the Egypt Energy Investment Summit in Cairo on 18 February heard.

Wind projects need over a year to carry out site studies, compared to a few months for solar. 

Two or three wind developers got access to their sites in April 2015, but others were slower. Solar developers are preparing to sign power purchase agreements (PPAs), while the final wind PPA has not yet been issued.

None of the wind projects are expected to meet the October deadline for financial close. NREA is then expected to begin a second round of feed-in tariff projects, changing the conditions and offering a less attractive tariff.

“When we are planning round two, one option is to allow announcing round two with similar conditions to round one - this will not be an extension,” says Dr Mohamed Salah El Sobki, executive chairman of the New and Renewable Energy Authority. “We are bearing in mind a number of factors which might affect the tariff; the changing cost of technology, the current legislation in Egypt has changed, reductions in taxes. Keeping in mind that the development of the documents is in the final stages, but financers and developers have not embarked on serious negotiations.”

Developers are hoping the Egyptian authorities will commit to a consistent wind tariff for longer.