Energy Efficiency Policy in Egypt

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1 Energy Efficiency Policy in Egypt The Establishment of Energy Efficiency Unit at the Ministry of Electricity Speaker : Sherein Abdalla Senior Energy Efficiency Engineer Egyptian Electricity Regulatory Agency

2 Outline BACKGROUND National strategy for Egypt s power sector NEEAP The Energy Efficiency Unit Work basis of EEU o Technical Assistance o Objectives o SCOPE OF WORK 2

3 BACKGROUND (1/2) The Egyptian government currently faces a real challenge to make a strategic choice between: o satisfying the increasing national primary energy demand (depending by more than 94% on oil and gas) that is being offered to end-users with subsidized prices, o and maintaining a certain level of hard currency revenues from oil and gas exports at world prices, even with a growing risk of accelerated depletion rates of national proven reserves. 3

4 BACKGROUND (2/2) For the electricity sector, the load and energy demand grows by more than 10% annually. Meeting the ever increasing demand on electricity with a high degree of reliability and sustainability has been one of the main issues addressed by the strategy developed and implemented by the Ministry of Electricity and Energy. In recent times the use of wind, solar and biomass energy has contributed to electricity production. 4

5 National strategy for Egypt s power sector Optimizing the use of available energy sources and minimize environment pollution Providing electricity with minimum price and best quality Restructure electricity sector to optimize investments and improve electrical services Utilizing modern and sophisticated technical systems in electricity sector's operation and activities Developing the expertise and skills of engineers and technicians working in the electricity sector. Energy Efficiency Improvement in supply and demand sides. 5

6 NEEAP MoEE has prepared the National Energy Efficiency Action Plan (NEEAP) of Electricity Sector ( ) with internal and external authorities. MoEE will deal with local and international financial institutions in administering energy efficiency funds related to the NEEAP. 6

7 The Energy Efficiency Unit a Central Energy Efficiency Unit at MoEE with qualified team of workers is being established. To Evaluate and monitor the progress of the current plan and the future ones. To Set up future scenarios for energy including the different alternatives of energy resources. To Develop a decision model for EE to decide among different alternatives. 7

8 Work basis of EEU organization structure business plan staff capacity building Implementing of NEEAP 8

9 Technical Assistance 9

10 Objective assist the MoEE with the establishment of EEU at MoEE in order to strengthen the institutional framework provide guidance, oversight, and coordination between parties, in the framework of NEEAP set future plans, monitoring, evaluation, and promotion of energy efficiency programs 10

11 SCOPE OF WORK 11

12 Develop the most cost and functional effective institutional setup and organization structure for the EEU at MoEE that would allow for developing energy efficiency planning, implementation capabilities. Ensure that there will be no duplication and clear line of reporting at the MoEE for newly established EEU with the organization structure of the MoEE, Central EEU at the Cabinet, Regional Center for Renewable Energy and Energy Efficiency (RCREEE), New and Renewable Energy Authority (NREA), Egyptian Electricity Holding Company (EEHC) and affiliated utilities and energy efficiency improvement project. Stakeholder identification and linkage 12

13 SCOPE OF WORK 13

14 Develop a short term and long term business plan for the EEU. future planning, monitoring, evaluation, and promotion of energy efficiency programs in the electricity sector Launching and Developing the necessary energy efficiency policies and regulations. Designing a decision model for EE to decide among different alternatives. Designing Key Indicators for the energy efficiency measures in all sectors (generation, transmission, distribution, end users). 14

15 Develop appropriate energy efficiency indicators and targets. Identifying the benchmark and creating information system to assist the process of monitoring and evaluation. Developing and implementing capacity building for measurement and verification of NEEAP results and the effects of these results on the indicators. Developing financing schemes and manage energy efficiency funds regarding NEEAP implementation Cooperation with the Central EE unit at the Cabinet, EE units at other line ministries in monitoring and implementing national energy efficiency programs and targets. Defining follow up energy efficiency programs in the electricity sector to be developed and implemented after NEEAP. 15

16 SCOPE OF WORK 16

17 Staff Capacity Building Plan Enhancing capacity for designing a decision model for EE Capacity for IT systems, databases, energy efficiency audit equipment 17

18 SCOPE OF WORK 18

19 In implementing the NEEAP, the consultant will provide a one year in-house local consultant to support EE unit staff in the day to day implementation of the developed business plan. Monthly report for the implementation of the action plan. 19

20 Thank You for Your Attention Sherein Abdalla

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