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.
REUTERS/Amr Abdallah Dalsh
By Staff Writer, Arab Finance
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.
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