Eight companies requests for electricity production, distribution licenses

Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has collceted requests from eight renewable energy companies to get or renew electricity production and distribution licenses.

According to an official in Egypt ERA, FAS Energy has requested for a permanent license to manufacture renewable energy from its solar plant in Benban in Aswan governorate, while Italgen requested renewal of its 320 MW Gulf El Zeit wind farm.

Madkour EPC, Enjaz Power, Soltage, and AbuSuma for tourism development also requested for a license to distribute electricity.

The official said, the applications will be put into consideration during the Egypt ERA’s board of directors meeting next week.

He explained that there are set conditions under which the Egypt ERA grants, such as licenses, including sufficient production capacity to meet contractual obligations.

Companies who will receive distribution licenses will comply with providing standby capacities to use them when needed to ensure stable operation of the national grid. They shall also prepare and apply the studies and expansion plans, taking into account environmental standards.

They shall shoulder periodic and preventive maintenance of the production equipment and facilities, in line with the executive programmes approved by the Egypt ERA.

The companies will install electricity metres at their expenditure to measure load dispatches supplied or exchanged with another company or consumers in accordance with the rules, standards and measurement systems of the contracts.

The source added that the electricity production and licenses distribution are subject to the control of the Egypt ERA, which in turn protects the investments of production and distribution companies, therefore it is not possible to allow establishment of two electricity networks in the same geographical area.

The Egypt ERA will also protects consumers from companies’ exploitation or mistakes, such as electricity bills errors and low quality service.