Four solar and wind energy projects were awarded qualification certificates to start selling the energy they generate to industrial projects according to the Peer-to-Peer  (P2P)  Mechanism for electricity generation and consumption.

The four projects together have a total capacity of 400 megawatts and investments totalling $388 million. Under this system, companies will build power plants and sell the generated electricity directly to industrial consumers. They will pay fees to the Egyptian Electricity Transmission Company in return for its transmission of this energy.  The government has no role in the process as it wont bear any costs and will not provide any guarantees for the involved parties.

Minister of Electricity and Renewable Energy, Mahmoud Esmat, along with Mohamed Moussa Omran, Head of the Electricity Utility Regulatory and Consumer Protection Agency, presented the certificates.

Esmat stated that the ministry’s action plan is being implemented in accordance with the Electricity Law. This law aims to liberalize the electricity market and foster a competitive environment among all parties involved in the electricity and energy sector, including producers, consumers, and distributors. The goal is to create an attractive investment climate for the private sector, ultimately improving the quality of electricity services and reducing costs.

Additionally, Esmat clarified that the liberalization of the electricity market, as stipulated by the law, is a strategic step to enhance competitiveness and bring more dynamism to the sector. It aims to activate the role of producers and consumers in the electricity market and create a sustainable investment climate that supports the transition towards a green economy. This also reinforces Egypt’s position as a regional energy hub, opening up broader opportunities for investments in renewable energy projects and the development of energy infrastructure, thereby contributing to the achievement of sustainable development goals.

It’s worth noting that these projects help industrial companies demonstrate their use of renewable energy and reduce emissions to meet climate change commitments and facilitate the export of green products.