Solar energy companies fear electricity distribution companies after the qualification of some of them to build solar power plants.
Solar energy companies are licensed by the New and Renewable Energy Authority (NREA) to implement solar power plants with capacities up to 500 kW.
According to solar energy companies’ heads, electricity distribution companies are the party that buys the energy produced from the solar stations.
Therefore, if anyone requests launching a solar plant, the distribution company takes the procedures of contracting either by installation or purchase of energy produced.
The heads of solar power companies explained that electricity distribution companies are seeking to compete with the private sector in launching solar power plants.
The number of companies licensed by the NREA are about 250 companies.
Despite the completion of the feed-in tariff system, investors are concerned about launching solar power plants in accordance with net metring. This means that consumers have the right to use the plant. However, in case of surplus, they have the right to sell it to the distribution company.
The North Cairo Electricity Distribution Company (NCDEC) has obtained a license from the NREA for the construction of solar power plants with up to 500 kW capacity.
The NCDEC has managed to build its first 7 kW plant and is seeking to implement other projects in the coming period for the distribution of electricity, according to Nagy Aref, head of the NCDEC.
Aref stressed that his company does not compete with the private sector, but obtaining a license and setting up the projects comes within the framework of competition.
He also said that the company will never force any subscriber to contract them for station establishment, as subscribers have the right to contract any licensed company.
The heads of solar power companies believe that other distribution companies will seek the license from the NREA to establish solar power plants up to 500 kW.
The NREA has set several requirements and standards to grant the companies licenses to set up solar power plants. Therefore, it publishes a list of companies licensed through its website without bias or preference for another company, it says.