Support to AFD in Defining the Policy Matrix For the 2nd Phase of the Electricity Sector Development Policy Loan (Egypt)

  • In the framework of a multi-donor program formed by the AfDB, the AFD and the JICA, a second ‎Development Policy Financing (DPF) to the Energy Sector was approved by AFD under a multi-‎credit facility with a grant for funding a new technical assistance. This second DPF exclusively ‎targets the Electricity Sector and is structured on two objectives: i) enhance the financial ‎sustainability and improving governance along the operational efficiency of the sector and ii) ‎support clean energy for fostering green growth through development of renewables and energy ‎efficiency actions. ‎
  • This project supports the sectorial reforms which aim at (i) ensuring energy security of supply, (ii) ‎improving the governance of the Electricity Sector, (iii) ensuring economic and social sustainability ‎of the Electricity Sector, and (iv) strengthening competitive markets & regulation.‎
    • The main objective of this assignment was to support AFD in its dialogue with the Egyptian ‎electricity public bodies for defining the Policy Matrix for the second phase of the DPL. Environics ‎produced an executive report, based on its own source of information and sector intelligence, ‎covering the following topics, as requested by AFD:‎
    • NDC (Nationally Determined Contribution) submitted by the Government of Egypt in the ‎context of Paris Agreement (COP21) and actions in the power sector: summary of the ‎Egyptian ambition and commitment, identified actions and targets, status of implementation.
    •  Development of large scale renewable power plants: current status, outlook, investment ‎perspective, regulatory incentives, barriers and locks.‎
    • Development of small scale solar: current status, outlook, investment perspective, regulatory ‎incentives, barriers and locks.‎
    • Energy Efficiency: key take aways for the Egyptian market, institutional set up and ‎framework, main actions undertaken for the Egyptian authorities, regulatory incentives, ‎barriers and locks.‎
    • Concluding recommendation providing a list of policy actions, both short term (2021) and ‎medium term, that could be discussed with the Egyptian authorities.‎
  • Environics was also committed to providing support, as well as being available for exchanges, and  ‎review of propositions made by the Egyptian party during the discussions of the Policy Matrix. ‎Accordingly, Environics was to deliver an updated report as needed to present the exchanges held ‎during this phase. ‎

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