Egypt is taking the necessary steps to regulate and manage its electricity market to create a competitive environment, improve operational efficiency, ensure financial sustainability and attract more investment, Minister of Electricity and Renewable Energy Mahmoud Esmat said on Monday.
Esmat said maintaining the quality of electricity services and improving operational efficiency are key priorities as the government works to regulate the market and separate electricity generation, transmission and distribution activities.
He added that the Electricity Law provides scope for investors to play an active role in the sector while boosting the role of regulatory authorities in monitoring performance and ensuring compliance with applicable standards.
Esmat made the remarks during a meeting with a delegation from Nexus Analytica, headed by the company’s CEO, Dr Wisam El-Baz, to review progress in developing the regulatory framework and rules for managing and regulating the electricity market.
The meeting also discussed efforts to strengthen governance and transparency in line with the Electricity Law and the government’s plan to separate generation, transmission and distribution activities.
Esmat reviewed the company’s work and its use of advanced digital technologies in the energy sector, particularly in supporting digital transformation and planning.
The discussions also covered digital tools for improving technical and financial forecasting, managing the energy mix and monitoring the performance of electricity networks and renewable energy plants.
The two sides reviewed international models for electricity-market liberalisation and discussed how Egypt could benefit from successful experiences and best practices to develop a more competitive market, optimise the use of available resources and improve operational efficiency and investment.
The proposed transition will be implemented gradually, taking into account the readiness of the electricity sector and its institutions. The process will begin with expanding bilateral contracting mechanisms among eligible parties before moving towards a more competitive electricity market based on clear and transparent rules that ensure a level playing field for all participants.
Nexus Analytica representatives outlined the methodology used to prepare the study and the main stages of the project. The work began with an assessment of the current market and its readiness, followed by the development of a proposed future market structure and operating mechanisms.
The study also identifies the regulatory, institutional and technical requirements needed to implement each stage of the reform process.
