Do the advantages, facilities and incentives attract investors to the renewable energy sector?

Damascus-SANA

Many incentives, advantages, and procedures were provided by the concerned authorities to encourage investments in the field of renewable energies, such as the creation of the Fund to finance alternative energies projects and Investment Law No. 18 of 2021, which encouraged the interest of many investors for these projects in light of the urgent need for additional alternative renewable sources to support the electrical system in Syria.

In a statement to SANA’s correspondent between the Assistant Minister of Electricity for Electricity Sector Regulatory Affairs, Dr. Eng. Sinjar Tohme, that Law No. 32 of 2010 regulated investment in renewable energies and opened the door for the local, regional and international private and joint sectors to invest in the field of distribution, noting that Law No. 32 issued a series of decisions, including Resolution No. 6 Which authorized the sale and purchase of electricity from renewable energy sources at encouraging prices until the end of this year. Article 28 of the law was also amended to allow medium and large renewable energy projects with a capacity of up to 100 megabytes to be connected to the transmission network after it was 10 megabytes.

Sinjar pointed to the importance of investing in large networks, where there are no rationing and malfunctions, as the transmission network is stable and energy is available 24 hours a day, and the investor gets the highest productivity, whether it is solar or wind energies or waste treatment, pointing out that the tariff for large projects is lower than for small ones that are exposed to risks due to the situation Network and investment conditions.

Regarding the facilities granted by the ministry to investors in this field, Tohme stated that Law 32 allowed investors to sell electric power to large subscribers, for example, allowing the installation of a wind power station in an area in Homs that would sell electricity to the industrial zone in Hasiya or Sheikh Najjar in Aleppo. Currently studying several large electric power projects for licensing.

He added: The Transportation Corporation announces the availability of places to set up projects for renewable energies, and the price is subject to competition among advanced companies, pointing out that more than one project has been announced and there are projects that have been contracted and are under implementation, including a 300 mega project with the UAE company and a 33 mega project in Sheikh Najjar, and there are a number Among the projects under study, the Ministry is also working on preparing for holding a conference on renewable energies in cooperation with the Investment Authority, which will be announced soon, provided that it includes identifying investment opportunities in this sector to reach formulas suitable for all parties “government, investors and citizens.”

For his part, Madin Diab, Director General of the Syrian Investment Authority, confirmed in a similar statement that Investment Law No. 18 provided incentives and facilities for all sectors, including investment in renewable energies, which is the basis for the growth of other investment sectors, whether tourism, real estate or industrial, pointing to the existence of customs incentives that include machinery and equipment. The supplies used for the projects are exempt from customs taxes, in addition to granting tax incentives at a reduction rate of 50 percent for a period of 5 years, whether for solar or wind projects, in addition to another 5 years when employing 100 workers or more.

Diab said: The authority provides procedural incentives with ease by issuing the procedural guide for investment, which speeds up the completion of administrative steps, in addition to the recommendation of the Supreme Investment Council to facilitate the granting of investment permits for these projects, as it can be granted before obtaining a license from the Ministry of Electricity. The projects and there is equality between the local and foreign investor with all the advantages, pointing out that 4 investment licenses were granted according to Law No. 18 for renewable energies, with investments amounting to about 916 billion pounds, with a production capacity of 215 megabytes, including 3 projects in the industrial city of Hasya and one in Adra industrial area.

In turn, Dr. Bassam Al-Mansour, director of the industrial city in Hasya, indicated that the city administration seeks, through the efforts exerted, to reach universality and compete with other industrial cities with its services and to attract industries and industrial clusters of quality such as renewable energies by taking advantage of the package of facilities and government support provided to investors, especially Law No. 18 of 2021 Pointing to encouraging the entry of industrialists to invest in the field of renewable energies, as the land was handed over to three companies to invest in solar renewable energies, and it is currently in the process of contracting with other specialized companies to start implementing and producing electricity from renewable energies.

Dr. Mostafa Hazoury, Vice Dean of the Faculty of Electrical Engineering, pointed out in a similar statement the importance of renewable energy as a main source for generating electric power and supporting the public network with the availability of several alternative energy sources such as solar energy, wind energy and bioenergy, indicating that the energy sector is one of the most vital sectors in the economy and constitutes the mainstay of many from the industrial and agricultural sectors.

Hazouri pointed out that Syria is one of the countries where renewable energy sources are available at high levels, as solar radiation can be invested by about 285 days each year. The college at the levels of graduation, master's and doctoral projects in the field of renewable energy.

SANA Economic Bulletin

Follow Sana's news on Telegram https://t.me/SyrianArabNewsAgency