202 M. HOCHBERG
Regulated Market
In the regulated market, power is supplied under traditional utility
monopoly regulation, with power sold to non-qualified users under tariffs
approved by the regulator. The Electricity Law, however, allows for
private sector participation in electricity distribution, 57 which may help
improve efficiency, especially if there are ‘quick win’ solutions to increase
the profitability and economic efficiency of electric distribution companies, which has been the case in other countries that have allowed for
private sector participation in distribution. In Egypt, the private sector
would likely participate via concession agreements. If investors are offered
a cost-reflective tariff plus a reasonable rate of return that is consistent
with international norms for regulated distribution utilities, this would
likely be an attractive opportunity.
Nuclear Energy Ambitions
In addition to renewable energy, Egypt seeks to integrate significant
nuclear capacity into the grid and currently has a major nuclear project
under development.
Development of the El Dabaa Nuclear Power Plant
Egypt’s nuclear ambitions date back to the 1950s, when the country
inaugurated two nuclear reactors for research purposes. Plans for the El
Dabaa Nuclear Power Plant (DNPP), which is currently under development, were first announced in the early 1980s. Yet instability, the
complexity and cost associated with nuclear power plant development,
access to alternative energy sources like natural gas, and the fallout from
the 1986 Chernobyl disaster all contributed to Egypt’s lack of progress
over the ensuing decades. In 2007, Egyptian President Hosni Mubarak
began to move the plan forward again by launching preliminary technical
studies, and revising the legal framework to meet international standards
for nuclear activity. Following the initial turmoil of the Arab Spring, Egypt
re-engaged Russia with respect to the technical and financial aspects of
nuclear development. 58
In 2014, Sisi announced plans to develop the plant in cooperation
with Russia. During Vladimir Putin’s December 2017 visit to Egypt,
Rosatom (Russia’s state corporation specializing in nuclear power) signed
Regulated Market
In the regulated market, power is supplied under traditional utility
monopoly regulation, with power sold to non-qualified users under tariffs
approved by the regulator. The Electricity Law, however, allows for
private sector participation in electricity distribution, 57 which may help
improve efficiency, especially if there are ‘quick win’ solutions to increase
the profitability and economic efficiency of electric distribution companies, which has been the case in other countries that have allowed for
private sector participation in distribution. In Egypt, the private sector
would likely participate via concession agreements. If investors are offered
a cost-reflective tariff plus a reasonable rate of return that is consistent
with international norms for regulated distribution utilities, this would
likely be an attractive opportunity.
Nuclear Energy Ambitions
In addition to renewable energy, Egypt seeks to integrate significant
nuclear capacity into the grid and currently has a major nuclear project
under development.
Development of the El Dabaa Nuclear Power Plant
Egypt’s nuclear ambitions date back to the 1950s, when the country
inaugurated two nuclear reactors for research purposes. Plans for the El
Dabaa Nuclear Power Plant (DNPP), which is currently under development, were first announced in the early 1980s. Yet instability, the
complexity and cost associated with nuclear power plant development,
access to alternative energy sources like natural gas, and the fallout from
the 1986 Chernobyl disaster all contributed to Egypt’s lack of progress
over the ensuing decades. In 2007, Egyptian President Hosni Mubarak
began to move the plan forward again by launching preliminary technical
studies, and revising the legal framework to meet international standards
for nuclear activity. Following the initial turmoil of the Arab Spring, Egypt
re-engaged Russia with respect to the technical and financial aspects of
nuclear development. 58
In 2014, Sisi announced plans to develop the plant in cooperation
with Russia. During Vladimir Putin’s December 2017 visit to Egypt,
Rosatom (Russia’s state corporation specializing in nuclear power) signed