EGYPTERA's New
Renewable Energy Licensing Rules

The Egyptian Electricity Regulatory Authority (EGYPTERA) is the licensing authority for electricity generation in Egypt. As Egypt's renewable energy sector has expanded dramatically — from a handful of small wind farms a decade ago to a pipeline exceeding 20 GW of announced projects — EGYPTERA's licensing framework has been updated to reflect the new scale and complexity of the sector.

This article summarises the key elements of the current EGYPTERA licensing regime for renewable energy generators and identifies the practical implications for project developers and legal advisers.

The Licensing Threshold

Under Egypt's Electricity Law No. 87 of 2015 and its executive regulations, electricity generation projects above 500 kW require a generation licence from EGYPTERA. Projects below this threshold are classified as small-scale and are subject to simplified registration requirements rather than full licensing. For large-scale IPP and utility solar and wind projects — which typically range from tens to hundreds of megawatts — the full EGYPTERA licensing process applies.

The generation licence is a project-specific instrument. It is not transferable without EGYPTERA approval, which means that any ownership change, project assignment, or financing transaction that results in a change of control of the generation licence holder requires EGYPTERA consent. This is a material consideration in project finance transactions and secondary market deals.

C&I and Wheeling Licences

Egypt's commercial and industrial (C&I) solar sector has expanded significantly. The development of the wheeling framework — which allows power generated by a renewable energy project to be transmitted across the national grid to a specific industrial or commercial consumer — has created a large new category of generation project. Wheeled C&I projects require both a generation licence and a wheeling arrangement approved by EGYPTERA and the Egyptian Electricity Transmission Company (EETC).

The wheeling framework introduces additional regulatory complexity: the terms on which EETC provides transmission services, the tariff payable for grid use, the curtailment risk allocation, and the metering and settlement arrangements all require careful legal structuring. These issues have become a significant area of our practice as C&I solar has grown.

Practical Implications

The EGYPTERA licensing timeline is a critical path item for project development. Developers should engage with the licensing process as early as possible, as the review and approval timeline is not always predictable and can affect financial close scheduling. All project finance lenders will require confirmation that the generation licence is in place, valid, and not subject to any material conditions prior to financial close.

The licensing conditions attached to individual project licences vary. Developers and their legal counsel should review the specific conditions attached to any project licence carefully, as conditions relating to commercial operation dates, capacity requirements, and grid connection specifications can have material implications for project economics and bankability.