Talks between the Electricity Ministry and Danish wind turbine manufacturer Vestas over 2.2 GW of wind power installations they plan to develop have reportedly faltered after the two sides failed to come to terms on the project’s feed-in tariff (FiT), ministry sources said yesterday. While they did not disclose Vestas’ offer, the sources indicated it was higher than USD 0.038 per kWh and said that the Egyptian Electricity Transmission Company (EETC) had set a maximum FiT of USD 0.035 per kWh for wind projects. Vestas had reached an agreement with the New and Renewable Energy Authority last year to construct a EUR 230 mn 250 MW wind farm under a plan to install 2.2 GW of capacity over a five-year span for around USD 4.4 bn. The project was set to be financed through HSBC, EKF Denmark, Euler Hermes, CDP Banco Standard, Save Danida Denmark, and the Danish Investment Fund for Developing Countries. The EETC intends to re-issue the tender for the project in order to find a better offer.

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