National stakeholders provide feedback on forthcoming smart mini-grids regulation
On 5 February 2025, MENALINKS organized a publication consultation event to present the draft regulation for smart renewable mini-grids in Cairo. This regulation which will to support the electrification of rural, isolated areas using renewable energy sources (RES), while enabling private sector engagement based on clear licensing and tariff frameworks. The MENALINKS programme has supported the drafting of the proposed regulation in close collaboration with the Egyptian Electric Utility & Consumer Protection Regulatory Agency (EgyptERA) and the Ministry of Electricity and Renewable Energy in Egypt.
The public consultation event was attended by a diverse audience including stakeholders from the Egyptian energy sector, project developers, financial partners, and representatives from the public sector.
Presentations highlighted Egypt’s role as regulatory frontrunner in smart mini-grids
Dr. Mohamed Omran, Executive Chairman of EgyptERA welcomed the attendees and highlighted the regulation’s focus on isolated smart renewable-based mini grids serving rural areas. The objective of these grids is to support the economic development of rural areas. He emphasized that mini grids will remain isolated, and that significant high-cost grid upgrades would be required in the case mini grids are to be connected to the main grid. Investors will be able to choose the type of generation, as long as it is mainly based on renewable energy sources (RES). The regulation includes stipulations for integrating storage solutions and EV charging. Dr. Omran further stressed that the tariff and contract templates will be approved by EgyptERA.
Dr. Maged Mahmoud, Technical Director of RCREEE, MENALINKS’ implementation partner in Egypt, noted that Egypt is the first Arab country to develop regulations for smart renewable minigrids. Tareq Zahw, Managing Consultant at Guidehouse and MENALINKS country lead for Egypt, presented an overview of the discussions with the Ministry or Electricity and Renewable Energy and other key stakeholders leading to the selection of smart renewable mini-grid as the first MENALINKS Focus Area in Egypt, and the envisioned way forward. He further gave a preview of the MENALINKS Investment Forum taking place the next day.
Isabelle Gerkens, Head of Energy Markets & Regulations of MENALINKS consortium member Elia Grid International, provided an overview over the work done to reach the phase of developing Smart Mini Grids regulations, including understanding the needs in Egypt, benchmarking against other geographies, and conducting a regulatory gap analysis. She extensively discussed the different aspects of the proposed draft regulation in the Periodic Book and its focus on small/medium scale Smart Mini Grids isolated from the main grid.
The proposed regulation for smart renewable mini-grids aims to support rural development by enabling renewable energy generation, green hydrogen, storage, and EV charging, without classifying mini-grid operators as distribution companies though a distribution licence is still required. A single project company will receive separate generation and distribution licences, with tariffs pre-approved by EgyptERA and adjusted for inflation and forecast accuracy. Stakeholders highlighted the need for investment protection, clear concession frameworks, and integration with the main grid and telecom regulations. Investor concerns focused on concession durations, regulatory stability, and compensation mechanisms. EgyptERA welcomed the feedback and based on this will refine the regulation before submitting the final version to the Cabinet.
