Egypt to release in August conditions for newly introduced “falling auction” tenders

The government will unveil in August the conditions for 600 MW-worth of solar projects that will be tendered under a newly-introduced auction system, Electricity Ministry sources told the press. The new mechanism will be similar to a Dutch auction, where prices are gradually reduced until a bid is made. The ministry will kick off the first of three tenders under this framework with a 200 MW project at an undisclosed location. The mechanism’s conditions will be set by the International Finance Corporation, which is acting as an advisor to the Egyptian Electricity Transmission Company. Eighteen companies and consortiums, including a consortium led by Orascom and stand-alone tech and industrial giant Toyota Tsusho, have prequalified to bid for the tenders.