The government requests 'orally' to reduce the prices of selling oil produced from shale and 'renewable' Materials and Products

The government has asked "orally" from companies producing electricity from shale oil and renewable energy to reduce the prices of selling energy from its projects on the agreed prices when signing agreements between the parties, according to a source familiar with.

The source said in an interview with "Al Ghad" that the government is currently negotiating oil shale companies and the companies of the first and second rounds of projects direct offers of renewable energy to reduce the prices of selling per kilowatt hour of electricity produced by its projects, to become close and competitive prices for sale of the projects of the third round Which was considered the lowest level among the electricity production projects.

The source pointed out that production prices, whether from shale projects or renewable energy from the first and second rounds, and from oil shale in particular, are not higher than the projects of the third round, taking into account the obligation of renewable energy projects to establish energy storage projects, .

The Minister of Energy and Mineral Resources, Engineer Hala Zwati, said earlier that the prices provided by companies eligible for the third round of direct offers to generate electricity from the sun was marked by "significant decline", the lowest of 17,646,3 fils per kilowatt hour; the equivalent of 2,485 cents kWh .

In a press statement, Zwati described the figure as "a record at the regional and global levels," while the highest bid for this round was 34,177 fils per kilowatt-hour, or 4.82 cents per kilowatt-hour, about 21% less than the lowest price for the stage the second".

At that time, the ministry attributed the reasons for the decline in the prices of the third phase projects to the progress of technology and the drop in prices significantly.

The source said that "the draft oil shale oil, which the government also asked him to reduce the prices of the sale of electricity agreed, exceeded the completion rate of 60%."

He explained that the plant's "buillers" had been installed while the steam turbines were being installed. He also pointed out that in the oil extraction and mining segment, the layer of this ore was reached in the area and started to be used in the plant. Time.

The main projects under implementation with the use of shale are the tire project, and the project is expected to start commercial oil shale project in 2020, while the investment in the project is about two billion dollars, funded by a Chinese Malaysian Malaysian.

The project will produce about 470 MW of electricity, which constitutes about 15% of the Kingdom's electricity needs at the time of its operation. The project will be completed after 50 years. It will be fully dependent on the local oil shale, estimated at about 70 billion tons.

The source stressed in this regard the need to diversify the sources of energy production and non-reliance to one source, specifically imported from abroad, in order to maintain the security and independence of supply.