Greater Powers for the New and Rene
Greater Powers for the New and Renewable Energy Authority
Egypt’s New and Renewable Energy Authority ("NREA") was established by Law No. 102 of 1986, and operates under the supervision of the Ministry of Electricity and Energy. It is the government agency partly responsible for the regulation of the renewable energy industry in Egypt. In the wake of greater investment and resources being divested towards the renewable energy industry in Egypt, the President issued Decree No. 135 of 2014,[1] amending Law No. 102 of 1986 – the change affords NREA greater responsibility in the field of renewable energy in Egypt.
Following the passing of the amendment, NREA’s purpose now includes the execution of projects both generating and utilising renewable energies, namely solar and wind, as well as others. NREA is also now capable of operating and maintaining the renewable energy projects set out in Law No 102/1986, as well as undertaking all measures related thereto. NREA shall do the above in its own capacity as a government agency or through partnering or contracting with other parties. More importantly, NREA shall have the capacity to sell generated electricity to third parties. Finally, NREA (with the Minister of Electricity’s approval) shall have the right to form joint stock companies, either on its own or as part of a joint venture, in order to fulfill its purposes.
These changes are representative of the growing importance of the renewable energy field to the Egyptian government. Following Presidential Decree No 274/2014 designating large swathes of land for solar energy investment, and the Minister of Electricity’s Decree setting out feed-in tariffs for renewable energy, this latest executive provision is simply the logical next step in the development of this industry. By giving NREA greater responsibilities and the powers to undertake those responsibilities, the government is turning NREA into a self-sufficient agency, capable of properly administrating an expanding sector of the Egyptian economy. This is important for investors, as it indicates a more confident business climate, centralising control and reducing bureaucracy.
[1] Presidential Decree-Law No. 135/2014 amending certain provisions of Law No. 102/1986 establishing the New and Renewable Energy Authority, Official Gazette, Issue No. 42 (bis) (a), 22 October 2014.
Egypt’s New and Renewable Energy Authority ("NREA") was established by Law No. 102 of 1986, and operates under the supervision of the Ministry of Electricity and Energy. It is the government agency partly responsible for the regulation of the renewable energy industry in Egypt. In the wake of greater investment and resources being divested towards the renewable energy industry in Egypt, the President issued Decree No. 135 of 2014,[1] amending Law No. 102 of 1986 – the change affords NREA greater responsibility in the field of renewable energy in Egypt.
Following the passing of the amendment, NREA’s purpose now includes the execution of projects both generating and utilising renewable energies, namely solar and wind, as well as others. NREA is also now capable of operating and maintaining the renewable energy projects set out in Law No 102/1986, as well as undertaking all measures related thereto. NREA shall do the above in its own capacity as a government agency or through partnering or contracting with other parties. More importantly, NREA shall have the capacity to sell generated electricity to third parties. Finally, NREA (with the Minister of Electricity’s approval) shall have the right to form joint stock companies, either on its own or as part of a joint venture, in order to fulfill its purposes.
These changes are representative of the growing importance of the renewable energy field to the Egyptian government. Following Presidential Decree No 274/2014 designating large swathes of land for solar energy investment, and the Minister of Electricity’s Decree setting out feed-in tariffs for renewable energy, this latest executive provision is simply the logical next step in the development of this industry. By giving NREA greater responsibilities and the powers to undertake those responsibilities, the government is turning NREA into a self-sufficient agency, capable of properly administrating an expanding sector of the Egyptian economy. This is important for investors, as it indicates a more confident business climate, centralising control and reducing bureaucracy.
[1] Presidential Decree-Law No. 135/2014 amending certain provisions of Law No. 102/1986 establishing the New and Renewable Energy Authority, Official Gazette, Issue No. 42 (bis) (a), 22 October 2014.