Africa Renewables: Egypt and Siemens Halt Wind Farm Negotiations

Wind farm - SiemensNegotiations between the Egyptian government and Siemens over the establishment of a 2,000 MW wind farm have come to a halt. This is the second time that talks between the two have not lead to productive results.

 Siemens’ main concern towards the project is the feed-in tariff (FiT) rate, which is around $0.038 per kilowatt. Siemen’s is looking for between $0.05 and $0.07 per KW.

The Egyptian Ministry of Electricity and Renewable Energy now has three scenarios to consider, according to a source in an Al Borsa report. First, to decrease the wind farm’s capacity to 200 MW and reduce the FiT to match that agreed upon with a Toyota consortium. The second option is postponing the project while the third option would be to cancel the project entirely, which is highly unlikely.

The deal was initially made during the Egypt Economic Development Forum (EEDF) in Sharm El-Sheikh in 2015. Talks came to a halt for the first time in December 2016 over the same issue, governmental sources previously told Al Borsa.

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