The National, by LeAnne Graves
Egypt is set to introduce regulations to encourage the production of energy from waste.
The country is preparing to introduce a feed-in tariff for such projects said Mohamed El Sobki, the executive chairman of Egypt’s New and Renewable Energy Authority, according to a joint report from the UK law firm Eversheds and Egypt’s Shahid Law Firm.
The authority is working with the environment and petroleum ministries as well as the Egyptian Electric Utility and Consumer Protection Regulatory Agency to release the framework that will spell out the type of waste, pricing and bidding requirements.
Feed-in tariffs offer a fixed pricing rate of production, sheltering producers from market volatility and other risks.
It is not yet clear what type of waste projects the country is targeting.
Phil Hanson, a Dubai-based associate at Herbert Smith Freehills law firm, said that a key component was how to secure the feedstock for waste to energy (WTE). “Obviously the supply is far more limited than for solar or wind, and any WTE programme would have to be fairly limited in scope compared to solar and wind,” he said.
“Egypt would need to work out how to ensure a reliable supply, with either the government or private contractors increasing their collection activities.”
The global waste-to-energy market is expected to increase by nearly half to US$37.6 billion in 2020 from $25.3bn in 2013, according to US-based Grand View Research. “A strong shift in trend towards energy security around the world, coupled with decreasing landfill area, is expected to remain a key driving factor for the market,” the company said.
One company that is already present in Egypt’s wastewater sector is France’s Suez Environment. “We have already built plants in Cairo and Alexandria, and we continue to operate there,” said Marie-Ange Debon, executive vice president of Suez’s international division.
The company’s Degremont unit this year won a contract to operate and maintain two wastewater facilities in Cairo. The facilities can generate up to 65 per cent of their own operating power using sludge, and the plant can be extended to help generate power to the national grid.
Establishing a clear framework to encourage investment in the renewables sector should be a priority for the government said Mr Hanson.
“I think the key to enticing investors to get involved in WTE, and indeed all forms of renewables in Egypt is, generally, to provide an environment of certainty and clarity,” he said . “So the Egyptian government has to work out the correct framework in consultation with all stakeholders and then stick to it.”
Comments