Unbundling of the Egyptian Grid -- Challenges and Opportunities
(Room Rheinsaal 3)
28 Jun 17
4:00 PM
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5:30 PM
Tracks:
Track A - Strategies for Change
Following the implementation of Law no 87 of 2015 (Electricity Law) and subsequent executive-level regulations issued in June 2016, power generators in Egypt now have the legal authority to sell directly to customers, pending completion of implementing regulations and fine-tuning the roles of existing governmental agencies. The Government of Egypt is currently immersed in efforts to implement the Electricity Law. Chief among these efforts is the preparation of a form power purchase agreement (PPA) to establish the buyer/seller relationship and to facilitate wheeling from the generator’s meter to the customer’s meter, an effort in which we are assisting the New and Renewable Energy Authority, a governmental entity which is at the forefront of this effort. Concurrently, we are developing an implementing agreement (IA) which includes the state-owned transmission and distribution companies as signatories, to facilitate the direct sale of electricity under the PPA. Our paper will (i) address key clauses in the PPA and IA, (ii) discuss governmental implementing measures currently underway, (iii) present as a key advantage to the direct PPA approach the targeting of customers and the resultant easing of credit issues, (iv) summarizing the ways in which the PPA will be adaptable to B2B transactions, (v) exploring variations to the PPA being considered for thermal and renewable contexts, and (vi) discussing the portability of this approach to other North African markets.