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Global Inflation Results In Postponement Of Solar Project In Egypt

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Deputy Director at the New and Renewable Energy Authority (NREA), Ehab Ismail said that due to global inflation, few renewable energy projects of Egypt have been postponed.

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Two companies which are Saudi Arabia’s ACWA Power and the UAE’s Al Nowais have been asked to delay their projects due to the rise in prices.

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ACWA Power and the Al Nowais asked the Electricity Ministry to extend the timelines for implementing their projects.

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The rising shipping costs and a hike in the prices of solar cells are putting the companies over budget.

Earlier, ACWA Power revealed its intentions to postpone work on its 200 MW Kom Ombo solar plant by 9 months.

Now, Al Nowais also wants to extend fundraising for its solar power projects by 6 months until June 2022.

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

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

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