Latest news with #ElectricityLaw
Web Release
4 hours ago
- Business
- Web Release
EBRD supports Egypt with first private-to-private electricity contracts
Energy market reform is taking a major step forward in Egypt as the government approves the first bilateral power purchase agreements between private generators and consumers. As part of a pilot of the private-to-private (P2P) rules, developed with technical support from the EBRD to the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egypt ERA) and approved last year, four renewable energy projects with a combined capacity of 400 MW have been approved to contract directly with end-consumers of electricity. The four approved projects are: KarmSolar, which will develop a 100 MW solar plant to supply electricity to Suez Steel. AMEA Power, which is building a solar facility of the same size to serve BEFAR Group and the Suez Canal Container Terminal. TAQA PV, which will install 100 MW of hybrid capacity (solar and wind) to power operations at Ezz Steel. Enara, developing a hybrid plant to deliver 100 MW to the El Alamein Silicone Products Company and Helwan Fertilizers. The P2P rules set out the conditions under which generators can use the power grid to sell electricity directly to consumers, a major departure from the existing single-buyer model and a significant step forward in Egypt's efforts to liberalise its electricity market – a goal set out in the 2015 Electricity Law. This approach introduces competition into the electricity sector, expands consumer choice and promotes private investments in renewable energy. It also introduces a path for Egyptian businesses, especially those that are energy-intensive and focused on the export market, to sign agreements directly with renewable energy producers that are increasingly required to prove their low carbon product credentials, for example green hydrogen destined for the European market. Furthermore, given the electricity generation under these contracts will be entirely privately financed, the P2P scheme represents an important route for Egypt to scale up electricity production without the need for government contracts. Mark Davis, the EBRD's managing director for the southern and eastern Mediterranean region, said: 'This milestone shows how the right regulatory framework can unlock private investment and drive the energy transition. By enabling companies to procure green electricity directly from producers, Egypt is opening new opportunities for industry and enhancing its competitiveness. We are proud to have supported EgyptERA in designing this pioneering scheme and will continue working closely as projects move towards implementation.' Dr Mohamed Mousa Omran, the chairman of EgyptERA, said: 'This pilot marks an important step towards a more competitive electricity market in Egypt. By enabling direct agreements between producers and consumers, we are creating space for the private sector to play a greater role in meeting the growing demand for clean energy in Egypt. This is essential for accelerating the deployment of renewables at scale and achieving our long-term energy goals.' The EBRD's technical support is generously funded by the Swiss State Secretariat for Economic Affairs (SECO), a key partner for the Bank in many of its ongoing policy engagements that aim to decarbonise the energy sectors of its countries of operation. This work is being delivered under the EBRD's Renewable Energy Programme, which is currently supporting 16 countries in their development of market-based mechanisms to mobilise private investments. To date, activities under this programme have delivered over 8,500 MW of renewable energy capacity being awarded in 8 countries.
Daily News Egypt
28-05-2025
- Business
- Daily News Egypt
Egypt approves $388m in private renewable energy projects for direct industrial supply
Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, has awarded qualification certificates to four companies selected to operate under the country's newly adopted private-to-private (P2P) power agreement model. The initiative allows private energy producers to generate and sell electricity directly to industrial consumers, marking a transformative step in Egypt's energy liberalization strategy and commitment to sustainable development. The approved projects represent a combined capacity of 400 megawatts and total investments of $388m. Each company will build its own renewable energy power plant and supply electricity directly to industrial clients, while paying a transmission fee to the Egyptian Electricity Transmission Company (EETC). These agreements are structured with no financial burden on the state and do not require sovereign guarantees. Among the newly qualified projects, Neptune for Electricity Production and Sales will supply solar power to the Suez Steel Plant. AMEA Power will provide electricity from its solar facility to the Suez Canal Container Terminal and Bivar Group for Chemicals. TAQA PV is set to supply Ezz Steel through a hybrid solar and wind power station, while ENARA for Renewable Energy Services will generate electricity from a hybrid facility for both the Helwan Fertilizers plant and the Alamein Silicon Products Complex. Minister Esmat stated that the initiative is being implemented in line with Egypt's Electricity Law, which is designed to open the market to competition, enhance efficiency, and attract private investment. He emphasized that liberalizing the electricity sector is a key strategic step in building a dynamic, competitive energy market that reduces costs, improves service quality, and strengthens Egypt's role as a regional energy hub. The Minister highlighted that the P2P framework enables industrial consumers to secure reliable, renewable electricity while contributing to their climate goals. These projects will also allow companies to certify their clean energy usage and reduce emissions, facilitating access to green export markets. Esmat noted that the Egyptian Electric Utility and Consumer Protection Regulatory Agency had completed its review of qualification submissions from seven companies, each proposing 100-megawatt renewable energy projects. The evaluation process was conducted in collaboration with a global consulting firm and the European Bank for Reconstruction and Development (EBRD), which helped develop the regulatory guidelines and legal framework for the P2P agreements. He reaffirmed the Ministry's commitment to building a transparent and investor-friendly environment that enables both producers and consumers to actively participate in Egypt's energy transition. These efforts are integral to supporting the national green economy agenda, expanding renewable energy capacity, and modernizing the country's power infrastructure.
Egypt Today
28-05-2025
- Business
- Egypt Today
Egypt Greenlights Private Sector Renewable Projects in $388M Move Toward Energy Market Reform
The Egyptian Ministry of Electricity and Renewable Energy has awarded qualification certificates to four private-sector renewable energy projects, comprising both solar and wind technologies. With a total generation capacity of 400 megawatts and a combined investment of $388 million, these projects mark a major milestone in Egypt's strategy to liberalize its electricity market and encourage private sector involvement in clean energy. According to the ministry's statement, the approved companies will be responsible for constructing the power plants and directly selling the generated electricity to industrial consumers. The electricity will be transmitted through the national grid by the Egyptian Electricity Transmission Company, which will receive a transmission fee. Crucially, this model requires no financial contributions or guarantees from the government, reducing the public sector's burden and empowering private entities to take a leading role in the country's energy transition. The selected projects include Neptune for Electricity Production and Sales, which will power the Suez Steel factory using solar energy. AMEA Power will supply electricity from a solar station to the Suez Canal Container Terminal and Bivar Chemicals. Meanwhile, Taqa PV will deliver energy to Ezz Steel via a hybrid solar and wind facility. Enara for Renewable Energy Services will provide electricity to both the Helwan Fertilizer Factory and the Alamein Silicon Products Complex through a similar hybrid system. Minister of Electricity Mahmoud Esmat explained that the Electricity Utility and Consumer Protection Regulatory Agency evaluated a total of seven private-sector proposals, each aiming to build 100-megawatt renewable energy plants. These reviews were conducted in cooperation with a global consultancy and the European Bank for Reconstruction and Development (EBRD), which also helped develop the regulatory framework and agreements enabling private sector engagement through the Power-to-Power (P2P) system. Esmat highlighted that this initiative is a key component of a larger governmental agenda grounded in Egypt's Electricity Law. The law is designed to create a competitive electricity market by allowing producers, consumers, and distributors to operate in a more dynamic and open environment. This shift is expected to enhance service quality, lower electricity costs, and attract long-term investments into Egypt's energy infrastructure, positioning the country as a regional leader in renewable energy development.
Jordan News
04-05-2025
- Business
- Jordan News
The Senate Approves the Electricity Law and the Jordanian National Commission for Women's Affairs - Jordan News
The Senate Approves the Electricity Law and the Jordanian National Commission for Women's Affairs In its session today, Sunday, the Senate approved two bills: the Public Electricity Law and the Jordanian National Commission for Women's Affairs, as they were presented by the House of Representatives. اضافة اعلان The Senate, during the session chaired by its President Faisal Al-Fayez and attended by the Cabinet, recommended that the Cabinet's approval be obtained for electricity purchase contracts from power plants and energy storage contracts outlined in the Electricity Law, as these contracts have significant financial and legal implications. The Senate emphasized the importance of clarifying the meaning of "self-generation" mentioned in Article 15, stating that it refers to "non-independent self-generation" when issuing the required regulations. The system should also include conditions for employee qualification to enable them to carry out the role of the judicial officer. The Senate also recommended that the Ministry of Energy and Mineral Resources and the Energy and Minerals Regulatory Commission conduct intensive and periodic awareness campaigns related to the new penalties and fines imposed for violating the provisions of the Electricity Law. The Public Electricity Law defines the roles and powers of both the Ministry of Energy and Mineral Resources and the Energy and Minerals Regulatory Commission, while also addressing technological developments, introducing the concept of electricity storage, and creating an attractive investment environment in the electricity and green hydrogen sectors. The law further adds the concept of independent self-generation, an independent electricity transmission system, and regulates the Ministry of Energy's preparation of reports on the potential for introducing competition in the electricity sector. In addition, the Senate approved the bill for the Jordanian National Commission for Women's Affairs, which establishes a legal framework to organize women's affairs through the creation of a national, independent, non-governmental body responsible for these matters. This body will have legal personality, financial independence, and administrative autonomy, ensuring a complementary role between official and non-governmental institutions. The bill also defines the institutional framework for the Jordanian National Commission for Women's Affairs to support its work according to the tasks and responsibilities assigned to it since its establishment in 1992, aiming to enhance women's status and empower them in political, economic, and social fields in cooperation and coordination with both official and non-governmental institutions. Source: Petra News Agency
Egypt Today
15-04-2025
- Business
- Egypt Today
Prime Minister Madbouly Inspects 650-Megawatt Wind Power Plant in Ras Ghareb
CAIRO - 15 April 2025: Prime Minister, Mostafa Madbouly, visited a 650-megawatt wind power plant in Ras Ghareb, as part of his tour of renewable energy projects in the Red Sea Governorate. The inspection reflects Egypt's ongoing efforts to strengthen its renewable energy infrastructure and transition toward a more sustainable and diversified energy mix. During the tour, Minister of Electricity and Renewable Energy Mahmoud Esmat reaffirmed the government's strong focus on increasing the use of renewable energy, reducing carbon emissions, and diversifying power sources. He noted that Egypt's national energy strategy aims to raise the contribution of renewable energy to over 42 percent of the electricity mix by 2030 and 65 percent by 2040. The strategy also seeks to maximize returns from Egypt's natural resources, particularly in the field of new and renewable energy generation. The minister announced that the board of the Egyptian Electric Utility and Consumer Protection Regulatory Agency has approved the selection of eligible producers and industrial consumers to operate under private sector agreements known as 'P2P' (Producer-to-Consumer Power Purchase Agreements). These agreements allow producers to build power stations and sell electricity directly to industrial consumers. Producers will pay a transmission fee to the Egyptian Electricity Transmission Company, while the government will not bear any costs or offer sovereign guarantees. Esmat emphasized the agency's commitment to the Electricity Law, which aims to liberalize the electricity market, promote fair competition among all stakeholders—including producers, consumers, and distributors—and enhance regulatory oversight to ensure transparency and market fairness. This approach is designed to create a more attractive investment climate for the private sector, improve electricity service quality, and reduce costs for industrial users.
