The Egyptian Electricity Transmission Company (EETC) is offering SGRE a 20-year power purchase agreement at the rate of $38.20/MWh, to match a bid by the Engie-led consortium for 250MW at Ras Ghareb, which, seperately, is being supplied turbines by SGRE.
According to local media, SGRE is seeking at least $50/MWh as the initial agreement was part of a wider electricity generation deal and included establishing a manufacturing site in the country.
Siemens, as it then was, signed agreements with the Egyptian government in 2015 to develop up to 2GW and build a blade factory in the Ain Soukhna region and to supply around 600 turbines to these projects in the Gulf of Suez and West Nile regions.
The first 180MW phase was originally expected to start building in 2016.
According to Egyptian media, the options now on the table are to develop just 200MW at the lower tariff, postpone the projects or to cancel the whole thing entirely.
SGRE declined to comment.