Review of Regulatory Framework for Private Sector Participation In the Egyptian Electricity Market (Merchant Projects)

Location:

Egypt

TCRS Number:

11751

Business sector:

Energy

Notice type:

Public

Status:

Approved

PSD disclosed:

31 Jul 2019

Project Description

The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) is committed to building deep and liquid energy markets in its Countries of Operations, including through the strengthening of independent regulation, the implementation of market-supporting regulatory frameworks, and the entrenchment of market-based behaviour.

A programme of gradual yet deep electricity market reform was initiated in Egypt with Law 87/2015; targeting transition from a traditional, vertically integrated, regulated state monopoly model to that of a fully competitive market. The Law envisages the gradual liberalisation of the electricity sector with extensive private sector participation, including through the establishment of a deregulated segment in which eligible private consumers will be able to choose directly their own retail suppliers. At the same time, Egypt possesses significant renewable potential and is committed to capturing the full value of this indigenous resource base, to the benefit of the Egyptian energy system and consumers. 

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) has requested support from the EBRD on the review of the pertinent regulatory framework and recommendations for efficient electricity market opening, in line with the provisions of Electricity Law 87/2015 and international best practices. Copy from TCRS Record: “Rationale” and “TC Services”.

Within this context, the Bank wishes to engage a consultant (the “Consultant”) to work with EgyptERA, EBRD and potentially other local energy sector stakeholders, with the following objectives:

• Phase 1: Advise on the different aspects of private sector participation in the electricity market:

o Define the key parameters for successful private sector participation in electricity market (merchant power generation projects (IPPs)), taking into account both relevant international experience as well as the Egyptian market needs in order to achieve consumer satisfaction, support the system’s sustainability, and be fully in line with the provisions of Electricity Law 87/2015.
o Identify specific regulatory areas and propose options on specific aspects of private sector participation in merchant projects that will be suitable for the Egyptian Electricity Market (IPP licenses, use of transmission and distribution networks, contractual settlements, etc.).
o Support EgyptERA with the establishment of key methodologies, drafting of key regulations and contracts that will govern private sector participation as merchant projects in the Egyptian electricity market.

• Phase 2: Provide implementation support for private-to-private merchant generation projects to be developed in the first phase of Egyptian electricity market opening. 
 

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

Email: eSelection@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm.

Project Complaint Mechanism

Any complaint under the PCM must be filed in accordance with the timeframes prescribed in the PCM Rules of Procedure.  You may contact the PCM Officer (at pcm@ebrd.com) for assistance if you are uncertain as to the eligibility of your complaint.