STEP Egypt

completed

The Government of Egypt took a major step in July 2014 by signaling its commitment to reform and transform the energy sector, issuing a Prime-Ministerial decree providing a roadmap for electricity tariffs in industries for the next five years, gradually increasing the tariff and phasing out subsidies. Industries are seeking solutions to reduce the risks posed by price increases in order to remain competitive. The project is designed to address demand for energy efficient technologies by developing standards and labels for energy efficient motors, and in parallel encourage the use of energy efficient technologies, while increasing their availability by supporting investment in manufacturing and feeding industries. The project is structured based on the following 2 components: 1. Developing regulatory tools and structures which can support up-take in energy efficient technologies: Energy efficiency standards & labelling program (S&L) for electric motors. 2. Catalyzing investment in energy efficient technology manufacturing and increase their availability and use by industries. Amongst the different policy measures, energy efficiency standards & labeling program offer significant potential for energy demand reduction and energy cost savings, reducing risk from energy price changes and providing non-energy benefits such as promoting market competitiveness, and building the capacity of the local manufacturing sector. A standards & labeling program has the potential to initiate market transformations for different classes of energy-saving equipment at a cost below the cost of providing new energy supply/conventional fuel supply. As well, the project aims to increase the availability and use of energy efficient technologies to meet growing market demand, by identifying which technologies have the greatest potential in Egypt, what barriers are preventing industry's use of these technologies, their availability, as well as the manufacturing of these technologies in Egypt. The activities will look to leverage Egypt's competitive advantages to attract investment and identify how local feeding industries could play a greater role in manufacturing.