Global inflation delays renewable energy projects in Egypt

Two major Middle Eastern energy companies have recently asked to delay renewable projects on the back of rising input prices: official

  
Image used for illustrative purpose. Workers set up the photovoltaic panels at the Benban plant in Aswan, Egypt, November 17, 2019.

Image used for illustrative purpose. Workers set up the photovoltaic panels at the Benban plant in Aswan, Egypt, November 17, 2019.

REUTERS/Amr Abdallah Dalsh
 

Egypt - Global inflation is postponing Egypt’s renewable energy projects, Ehab Ismail, Deputy Director at the New and Renewable Energy Authority (NREA), told Enterprise.

Ismail added that two major Middle Eastern energy companies have recently asked to delay renewable projects on the back of rising input prices.

Recently, Saudi Arabia’s ACWA Power and the UAE’s Al Nowais asked the Electricity Ministry to extend the timelines for implementing their projects.

Ismail noted that rising shipping costs and an increase in the prices of solar cells are putting the companies over budget.

Earlier this week, ACWA revealed intentions to postpone work on its 200 MW Kom Ombo solar plant by nine months. Al Nowais also wants to extend fundraising for its solar power projects by six months until June 2022.

The two companies said the cost of implementing their projects would go over budget and sought to delay their implementation “until prices settle down”.

Ismail further noted that both companies did not seek to renegotiate the agreed-upon price per unit of electricity with the Egyptian government.

 

Copyright © 2021 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Energy