Egypt sets feed-in tariff to boost waste-to-energy biogas projects

Egypt has taken a significant step toward expanding its renewable energy sector, approving a feed-in tariff aimed at encouraging electricity generation from biogas and sewage sludge.

In a cabinet meeting chaired by Prime Minister Mostafa Madbouly (4/6), the government approved a tariff of $0.044 per kilowatt-hour for electricity produced from biogas derived from sanitary landfills and sewage treatment plants.

The move is part of a broader strategy to diversify Egypt’s energy mix, reduce landfill waste, and support the transition to cleaner energy sources.

Package includes land rights and PPAs

Under the new framework, private companies investing in waste-to-energy projects will be granted ‘usufruct’ rights to government land for up to 25 years. (A usufruct right confers the temporary right to use and derive income or benefit from someone else’s property.) Companies will be fully responsible for securing environmental approvals, covering grid connection costs, and obtaining necessary permits.

Electricity generated through these projects will be sold to national distribution companies via power purchase agreements (PPAs). Payments will be made in Egyptian pounds, pegged to the Central Bank of Egypt’s prevailing exchange rate for the U.S. dollar at the time of invoicing.

The permitted project capacity is a minimum of 500 kilowatts and a maximum of 20 megawatts to allow for connection to the grid. The Decree specifies that the FiT shall be reevaluated after an aggregate production capacity of 300 megawatts over all greenlit projects has been reached.

Tariff review in-built

The initiative sets a cap of 80 megawatts in total installed capacity over a three-year period. The tariff will be subject to review once the cap is reached or after three years, whichever comes first.

Oversight and regulation will be handled by a joint committee led by the Waste Management Regulatory Authority, with participation from key government ministries and agencies. This body will define the technical and financial standards for project approval.

Egypt has been working steadily to enhance its sustainability profile, with waste-to-energy seen as a key pillar in both environmental policy and renewable energy development.