Smart Mini Grids Investment Forum in Cairo

The MENALINKS Investment Forum was opened by H.E. Dr. Ahmed Mohina, First Undersecretary of the Egyptian Ministry of Electricity and Renewable Energy (MoERE), on behalf of H.E. Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, H.E. Jürgen Schulz, Ambassador of the Federal Republic of Germany to Egypt, Dr. Mohammed Omran, Executive Chairman of EgyptERA, and Dr. Zoheir Hamedi, Executive Director of RCREEE. The opening remarks highlighted the strength of ongoing cooperation between Germany and Egypt and stressed the acceleration of efforts for integrating more renewable energy and for decarbonisation undertaken by Egypt. H.E. Ambassador Schulz highlighted that smart mini-grids are a true win-win for the energy sector and in line with commitments to the Paris Agreement. H.E. Dr. Ahmed Mohina further emphasized the importance of mini-grids for remote areas and underserved communities, and the role of smart elements in elevating system efficiency.

Interactive formats enabled stakeholder dialogue

The forum included two panel discussions, one with representatives from project developers (Scatec, Taqa Power, ACWA Power, Siemens, and Energy Pool) and New and Renewable Energy Authority (NREA), followed by a second panel with representatives from the financing sector (AfDB, IFC, IsDB, KfW, Nexia, and DFA). Opportunities arising from the introduction of the smart renewable mini-grid regulations, possible barriers to implementation, and solutions were discussed in five round table exchanges. The outcomes of each round table were presented to the wider group, covering topics related to land reclamation, economic development, access to financing, and the need for reliable long-term regulations that allow for flexibility where needed.

Selected presentations:

Key outcomes of the event:

• Strategic alignment: So far, over 40,000 km² have been allocated for the deployment of renewable energy in Egypt. Smart renewable mini-grids are a strategic tool for supporting a policy goal mix cantered on rural development and energy equity. NREA is mandated with land allocation for renewable energy projects and is committed to supporting mini-grid developers to secure the needed land.

• Policy & incentives: Long-term PPAs (25 years) and favourable customs duties (<2%) enhance project viability. Local manufacturing of solar and wind components is being encouraged, for which the availability and advancement of skilled labour in Egypt is essential.

• Business models & PPPs: Public-Private Partnerships (PPPs), particularly BOO and BOOT models, are seen as important facilitators for the deployment of smart mini-grids. The example of a completely isolated 100% renewable-based mini-grid in Saudi Arabia developed by ACWA Power (Red Sea project), showcases the feasibility of such large-scale smart mini-grids, provided that the suitable conditions are available.

• Investment opportunities & challenges: Developers highlighted electricity storage integration, demand uncertainty, and load guarantee mechanisms as key challenges for mini-grid developments. Several participants emphasised the importance of de-risking mechanisms, such as guarantees for offtake and stable tariff regimes, as crucial support for emerging mini-grid business models.  Pilot projects could help refine regulation and uncover business model challenges before scaling.

• Technology & innovation: “Power-to-X” and hybrid solutions integrating variable renewable energy sources and storage were presented as scalable solutions that combine newest technologies with additional revenue streams for project developers. Demand aggregation has been seen as essential for de-risking investment and ensuring offtake, while the potential for virtual power plants and aggregators was especially emphasized.

The event has been an important step to gather feedback on the proposed regulation on smart mini-grids and create connections between financiers and project developers in this emerging business field. Based on their feedback and additional stakeholder consultations, EgyptERA will finalise the regulation in close collaboration with MENALINKS and Egyptian stakeholders. 

Panel 1: Development and operation of smart mini-grids

Exploring the evolving business cases and financing needs of Smart Mini Grids, drawing on the expertise of local developers and experience from international case studies.

Speakers:

• Madiha Adbelazeem, Head of technical affairs, NREA

• Ghada Darwish, Country Manager Egypt, Globeleq

• Khaled Azab, Senior Manager of Business Development, TAQA Power

• Dr. Sherif Essawi, Power System Consultant, Siemens

• Mohamed Youssef, Director Business Development Egypt, ACWA Power

• Hamza Mortage, Senior Business Development Manager, Energy Pool

• Maryam Gamal Abdelaziz, Business Development Manager, Scatec

• Moderation: Dominik Peper, Managing Consultant, Guidehouse

Panel 2: Financing smart mini-grids in Egypt

Selected finance and development organisations share their insight into Smart Mini Grid finance in the Egyptian context, discussing their experience, expectations, available financing models and incentives.

Speakers:

• Dr. Ashraf Khadam, Senior Global Energy Specialist, Islamic Development Bank (IsDB)

• Khaled El-Askari, Principal Energy Officer, African Development Bank (AfDB)

• Marwa Mostafa Khalil, Investment Officer, International Finance Cooperation (IFC)

• Rawya Elshazly, Senior Project Coordinator - Energy Sector, Kreditanstalt für Wiederaufbau (KfW)

• Dr. Mohamed Abdelhameed. Managing Director, Development Finance Advisers (DFA)

• Moderation: Dr. Maged Mahmoud, Technical Director, RCREEE