Egypt’s cabinet approved the purchasing tariff of electricity from waste-to-energy plants on Wednesday at EGP 1.4 per kW/h.
Earlier, Daily News Egypt reported that several government agencies will share in the purchasing tariff of electricity from waste-to-energy plants for two years, bearing 37 piasters to be added to the original tariff of EGP 1.03 to reach EGP 1.40 per kw/h.
According to the cabinet’s decision, the purchase price shall be in Egyptian pounds and in accordance with a price formula applied over a period of 25 years. The purchase agreement for the electric power generated from waste shall be between the governorate where the production plant is located and the plant itself. The land of the project will be allocated by the hosting governorate on a usufruct scheme.
Furthermore, each governorate – where the plants is located – will be responsible for paying the tariff and providing the needed waste for the plant free of charge.
Egypt’s annual wastes amount to 100m tonnes, including 42m tonnes from construction and demolition, 30m tonnes from agricultural processes, 21m tonnes of solid domestic waste (rubbish), 3m tonnes from digging and draining, and 2.9m tonnes from industry, and 0.14m tonnes of medical waste.
Article four of the decree states that the governorates collects the electricity supply tariff supplied at 103 piaster per kw/h, while 37 piasters per kw/h will be paid for by the municipal solid waste or biogas facility. In the case of electricity production from the sludge from the wastewater treatment plant, the remaining fee will be paid by the agency that owns the sewage treatment plant.
Previously, the cabinet announced a preliminary purchasing tariff of waste-to-energy at 92 piasters per kw/h, which investors and experts considered very low compared with the technology and huge investments of such projects. Therefore, the ministry agreed to fix the tariff to attract more investments.