Egypt to Open its RE Market to Private Producers

The government of Egypt has announced that it is in the process of deciding regulations about the production and sale of electricity from new private renewable power projects unswervingly to consumers by September 2019.

Egypt’s ministry of electricity has set up a committee to formulate the standards, regulations, and rules governing the production of electricity from solar and wind stations and selling them to consumers through independent power producer (IPP) with payment of electricity network usage fees. Through this, the consumers will have free access to electricity from any licensed company producing and selling energy.

The committee would entail of officials from the Egyptian Electricity Transmission Company, the Egyptian Electricity Holding Company, the Electricity Regulatory Authority (ERA), the New and Renewable Energy Authority, experts in the field of electricity and energy, representatives from the private sector like KarmSolar, according to a press release on the development.

A substantial point in the new rules is that no company would be permissible to dominate the production or sale of electricity and direct tariff negotiation with consumers. The rules moreover include obtaining licenses to engage in the production and sale of electricity by the ERA, with the licenses being limited in duration and obtained by the private sector annually. According to the country’s Electricity Law, each participant has the freedom to choose their electricity supplier, the release further.

The new laws are set to open the market to the private sector, boosting healthy competition.