Egypt’s Waste Management Regulatory Authority has completed the drafting of new rules and incentives aimed at encouraging private sector investment in waste-to-energy projects. The proposed regulations have now been sent to the Cabinet for approval.
According to sources familiar with the matter, one of the key changes is an increase in the tariff for electricity generated from waste by private companies, which the government will purchase at a fair investment price. This tariff will be denominated in dollars but paid in Egyptian pounds, based on the exchange rate set by the Central Bank of Egypt at the time of payment.
The final tariff value is expected to be announced by the Egyptian Cabinet within the next two months. The sources emphasized that this move is part of the government’s broader strategy to attract investment in the green energy sector, while also helping manage the country’s waste more efficiently.
Collaborative Effort Between Ministries
The new tariff structure will involve collaboration between several key ministries, including the Ministry of Electricity, the Ministry of Environment, the Ministry of Local Development, and the Ministry of Finance. The electricity sector, in particular, may require financial support from the Ministry of Finance to manage the increased costs, should the tariff increase be approved.
This initiative is a part of Egypt’s broader effort to diversify its energy sources and reduce its dependence on fossil fuels. The government aims to not only address the growing waste management challenges but also to harness the potential of waste as a valuable resource for generating electricity. The new rules are expected to foster public-private partnerships in the waste-to-energy sector, paving the way for more sustainable energy solutions.
