“SIDA”: The Minister of Electricity’s decision supports clean electricity investments
The Energy Development Association (SIDA), representing solar energy companies and investors in the field of renewable and solar energy, praised in a statement the amendments issued on Last Thursday, from the Electricity Utility and Consumer Protection Regulatory Agency under the name of Circular No. 6 of the year 2022 regarding the amendments to the net metering controls, which canceled and amended some provisions of the defective periodic book 2 of the year 2022.
The Sida Board of Directors added that this decision is a major step forward and is consistent with the directives of the President of the Republic to increase the contribution of renewable energy to the electric energy mix in Egypt and is in line with the state’s plans to increase the contribution of renewable energy to 42 % of the total electric energy produced by the year 2035.
The industrialists also confirmed that the issuance of such a decision and these amendments are in response to the appeals and demands of investors What they have demanded over the past months is a positive shift in dealing with the relevant stakeholders and will lead to more investments in the renewable and solar energy industry and will stimulate investors The solar energy perishes and positively affects the investment decision and will have a positive impact on the feasibility studies for the decision to invest in solar power plants or purchase from electricity producers from solar energy.
The Energy Development Association (SIDA) extends its sincere thanks and appreciation To Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, in response to the demands of investors and the Energy Development Association (SEDA), the CEO of the Electricity Utility and Consumer Protection Regulatory Agency, the CEO of the New and Renewable Energy Authority, and the leaders of the ministry, the utility and the authority for their cooperation and good understanding of the current situation and the amendments made by issuing the circular No. 6 of the year 2022.
The Energy Development Association demanded the issuance of a package of legislation and incentives to support investment in solar and renewable energy and called on national banks to contribute effectively to financing solar and renewable energy projects and Facilitating procedures for investors and consumers in all sectors, especially tourism, to implement the state’s directives in this regard. February 2022 Periodic Book No. 6 of the year 2022 regarding amendments to net metering controls, and it was stated in the circular that these amendments came as an incentive to support and encourage solar energy projects in a way that contributes to preparing for hosting the Conference of the Parties (COP) ) in order to contribute to preparing for Sharm El-Sheikh to host the conference and to rely on clean and green energy, as well as the expansion of solar energy projects on rooftops in all sectors at the state level.
The resolution stipulated that Canceling the third item of Periodic Book No. 2 for the year 2020, which used to set a ceiling for installing solar power stations not to exceed 1.5% of the total capacity of each of the multiple distribution companies.
Also It stipulates raising the limit of capacities allowed to be installed in the net metering system at the level of the Republic from 300 megawatts to 1000 megawatts, an amendment that comes at an appropriate time to enhance the state’s vision and implement directives Mr. President of the Republic.
The limits stipulated in clause 6 have also been raised to become the total solar capacity contracted under the net metering system and owned by any party licensed by distribution networks for 30 Megawatts and limit Maximum 30 megawatts per project.
The association also praised the most important amendment, which is the amendment of Clause No. 9 regarding the merger fee to raise the exemption limit from the application In exchange for merging on 1000 k. Watt instead of 2020 k. Watt on the net metering system, and the exemption applies to projects with a self-consumption mechanism.