REQUEST FOR INFORMATION (RFI) - Egypt Energy Sector Activity

The April 2024 workshop hosted by USAID and Egypt’s Ministry of International Cooperation (MoIC) focused on advancing Egypt's energy sector through international collaboration. The event, attended by over 55 participants from Egyptian government agencies and international partners, explored key areas for potential support and technical assistance, centered on large-scale renewable energy integration, regulatory frameworks, gender and environmental considerations, and demand-side technologies. USAID’s engagement aligns with its $10 million commitment to the energy sector within Egypt's Nexus of Water, Food, and Energy (NWFE) initiative, aiming to position Egypt as a regional clean energy leader. Key workshop presentations underscored Egypt’s ambitious renewable energy (RE) targets, including plans to decommission 5 GW of natural gas capacity and establish over 3 GW of RE capacity by 2027. This includes expanding RE’s share of installed capacity to 42% and reducing energy consumption by 18% from forecasted levels by 2035. Presentations by the Ministry of Electricity and Renewable Energy highlighted successes in scaling projects like the Benban solar park, along with ongoing priorities in sector reforms, efficiency, and system flexibility to manage increasing renewable contributions. Updates were also shared on hydrogen production goals, energy market liberalization, and renewable certificates as part of broader efforts to attract private sector investment. Discussions around large-scale RE project development focused on technical requirements for grid upgrades and the integration of 10 GW of intermittent RE, critical for supporting Egypt’s green hydrogen ambitions. Suggested technical assistance included grid planning, enhanced system operations for stability, flexibility measures, and auction-based procurement to accelerate RE deployment. Regulatory reforms also featured prominently, with stakeholders emphasizing the need for open access and competitive wholesale electricity markets to attract private investments. Support was suggested for designing market frameworks, green electricity credits, and transmission pricing models. Cross-cutting themes addressed social and environmental impacts of the energy transition, particularly regarding job creation, gender inclusion, and environmental practices. Participants identified opportunities for training marginalized groups, implementing environmental safeguards for RE projects, and promoting a circular economy approach to manage equipment end-of-life challenges. Donor and government participants highlighted the necessity of equitable transitions, aligning workforce skills, and maximizing the sustainable, inclusive potential of energy projects. Lastly, demand-side strategies discussed included energy efficiency, distributed renewable energy, electric vehicle (EV) adoption, and new distribution sector technologies to manage grid demands. Challenges noted include scaling distributed photovoltaic (PV) adoption, creating energy-efficient programs, and preparing grid infrastructure for EVs. Technical support was proposed to enhance planning, finance business models, and strengthen the regulatory environment to enable private and public investments in these areas. USAID and GoE officials expressed interest in translating the workshop's discussions into concrete actions, emphasizing the importance of sustained collaboration to develop a five-year energy program. The event marked an essential step in aligning international resources with Egypt’s energy priorities, supporting a pathway toward a resilient and inclusive energy future.