RE Private Investment Promotion Mechanisms in the Arab Region Workshop: "Competitive Bidding, Direct Proposals and Auctions for Utility Scale Projects and Net-Metering Programs for Distributed Generation

December 24, 2018- Cairo, Egypt: Although the RE markets are not progressing at the same pace in all countries, nevertheless, the Arab region currently possesses adequate experience in following various approaches for deploying RE technologies. Competitive Bidding schemes, feed-in tariff, and net-metering have existed for some time. It has been observed that some countries have started with one scheme then switch to another. Other countries might remain in favor of a specific scheme.

Among the factors that affect such decision is the pricing of the electricity generated from the RE power plants. RE prices differs according to the scheme that is followed. Bidding processes in their different formats such as competitive tenders, rounds-based direct proposals and auctions usually results in the lowest prices for the RE generated from large-scale utility projects. On the other hand, net metering is rather related to the electricity prices. It is preferred by small and medium customers, subject that electricity prices are merely subsidized.

In this context, the Regional Center for Renewable Energy and Energy Efficiency (RCREEE) The workshop in cooperation with the Energy Department League of Arab State (LAS) and the Egyptian Ministry of Electricity and Renewable Energy represented by the New and Renewable Energy Authority (NREA) organize a workshop on “Competitive Bidding, Direct Proposals and Auctions for Utility Scale Projects and Net-Metering Programs for Distributed Generation“.

The objective of the workshop is to share the experiences gained in some of the leading Arab markets, and specifically to get insights into the emerging and commonly used schemes and their practical implementation hurdles’ with respect to institutional, administrative and contractual setting as well as their impact on pricing, financial viability and the pace of development of RE.

Furthermore, the workshop will tackle key issues related to green finance and investments. It will highlight project cost drivers as well as key risks for investors and lenders associated with the deployment of renewable energy projects. The workshop will be an opportunity to present and discuss different options for de-risking investments in the Arab region.

Attendees from the Arab countries will share the best practices and key factors for a successful private investment bids and most important lesson learned.  

The workshop took place in Cairo, Egypt with around 40 attendees from the private, governmental and developmental sectors in the Arab region.