11/02/2025
Announcement ...
The New and Renewable Energy Authority has become the organization responsible for qualifying Energy Service Companies (ESCos) and providers of Measurement and Verification (M&Vs) services in Egypt. This step represents a major development to support the energy services market in Egypt.
ESCos are companies that provide services to implement and finance projects related to energy and energy efficiency, including auditing energy use in facilities, designing projects, providing equipment, construction, installation and trial operation, measuring and verification of energy and saving costs, and operating, maintaining and managing facilities and energy services. These companies operate through the concept of performance-based contracting, which means that they bear technical and financial risks.
The United Nations Industrial Development Organization (UNIDO), through the “Egyptian Program for improving motors efficiency in industrial processes” project, which is funded by the Global Environment Facility (GEF), and which focuses on improving the efficiency of electric motor systems and expanding the use of high-efficiency motors in the industrial sector, in cooperation with the Egyptian Ministry of Transport and Industry and the Ministry of Electricity and Renewable Energy, has begun to implement the framework for qualifying ESCos and M&Vs services through the New and Renewable Energy Authority (NREA). NREA has strong technical capacities and experience in qualifying solar photovoltaic energy companies and solar thermal energy (solar heaters). Also, NREA has gained the confidence and market preference due to its role dealing directly with the private sector.
The development of ESCos represents a good incentive for improving energy efficiency and renewable energy applications, as these companies combine the services of developing solutions to improve energy efficiency and renewable energy applications, with the provision of financial services, which contributes to access to financing and reduces technical and financial risks associated with those projects. The ESCOs market also includes M&Vs service providers for the purpose of verifying real energy savings, and this includes various decentralized renewable energy activities that operate through power purchase agreements or other independent energy producer schemes.