Egypt seeks to define new auction mechanism for solar and wind

The European Bank for Reconstruction and Development (EBRD) has issued a tender for consultants to help the Egyptian Electricity Transmission Company (EETC) with financial and technical assistance for the procurement of large-scale renewable energy projects.

Selected advisors will have to provide their services for four main tasks:

  • Supporting the task force that is currently evaluating the tender process for a 200 MW PV facility at KomOmbo;
  • Providing support for the development of new tenders for wind and solar power projects under the build-own-operate (BOO) structure;
  • Providing assistance for the structuring of the RfP for the construction of a 100 MW Concentrated Solar Power Plant (CSP) in the Western Nile area; and
  • Developing a new framework for a future competitive procurement scheme through bids or auctions.

The assignment should start this June, while the deadline to submit applications is April 16, 2018. The funding source is the Green Climate Fund, a fund created within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in adaptation and mitigation practices to counter climate change.

Furthermore, the EBRD has revealed that there are currently four Build Own Operate (BOO) tenders for which procurement has already commenced: the above-mentioned KomOmbo project, a 200 MW solar project and a 250 MW wind project at West of Nile area, and the afore-listed CSP project.

EETC issued a tender for the deployment of 600 MW of PV capacity in the West of Nile Area in December. This was the first tender for the development of solar parks in Egypt outside of the FIT scheme. In the first two rounds of the FIT program, around 2 GW of PV capacity was allocated. The majority of these projects, which are granted a 25-year FIT contract under the program, will be located in the 1.8 GW Benban solar complex, near Aswan in upper Egypt.

In October, EBRD identified 16 new solar projects in Egypt, with a cumulative capacity of 750 MW to receive financing.