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.