Gov’t preliminarily approves using BOO framework to replace FiT for wind energy projects

FiT for wind replaced with BOO? Alcazar Energy’s gamble on build-own-operate makes sense, considering reports that former Prime Minister Sherif Ismail had given preliminary approval prior to his leaving office to replace FiT for wind energy with a BOO framework, government sources said. Several investors had beseeched Electricity Minister Mohamed Shaker to implement a BOO framework for these projects, saying that foreign banks are reluctant to avail financing due to Egypt’s relatively low tariff. Newly appointed Prime Minister Mostafa Madbouly is expected to issue a decree approving the switch once the Electricity Ministry finalizes the specifics of the new scheme.