- GCIP has developed a bespoke Energy Regulatory Sandbox Guidebook for the Egyptian energy regulatory agency.
- The guidebook provides a structured framework for testing emerging innovations in the electricity sector.
- GCIP’s work will help Egypt energy sector unlock private sector investment and drive renewable energy sector growth.
The Green Cities and Infrastructure Programme (GCIP) has developed an Energy Regulatory Sandbox Guidebook for the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) to support Egypt’s transition towards a more innovative electricity sector.
A regulatory sandbox offers a controlled environment where emerging innovations, such as dynamic tariffs and local energy sharing, can be tested without the usual regulatory constraints. By enabling real-world trials, a sandbox generates evidence on how new solutions perform and allows informed adjustments to be made before beneficial innovations reach the marketplace.
As Egypt transitions towards a more technologically advanced energy system, regulatory frameworks will need to accommodate and support innovation while maintaining stability and consumer protection. The Energy Regulatory Sandbox Guidebook developed by GCIP provides a structured framework for designing, implementing and managing regulatory sandboxes, which will help with this transition.
Tailored specifically to Egypt’s energy sector context, the guidebook provides policymakers, regulators and industry innovators with a practical, step-by-step framework for designing, implementing and managing regulatory sandboxes. It covers all relevant processes, from application and pilot testing to scaling successful projects for broader market adoption. Drawing on international best practices and lessons learned from pioneering countries, it equips EgyptERA with a valuable tool to promote a dynamic and forward-looking electricity sector.
The regulatory sandbox will enable EgyptERA to initiate pilot projects that address critical energy transition areas, such as peer-to-peer electricity trading and blockchain applications, renewable energy integration, energy storage technologies, demand-side management and dynamic pricing, and smart- and mini-grids. EgyptERA has already indicated that it will immediately use the regulatory sandbox guidebook to inform the development of mini-grid regulations. The regulatory sandbox pilots will not only test innovations but also demonstrate how regulatory adaptability can unlock private sector investment and drive renewable energy sector growth.
The Energy Regulatory Sandbox Guidebook was developed as part of GCIP’s Egypt Energy Partnerships Phase II project, which is working with the Government of Egypt to increase the country’s renewable energy generation and energy security by enhancing the enabling environment for investment in the sector.
The UK’s Green Cities and Infrastructure Programme is tackling climate change and extreme poverty by accelerating the delivery of sustainable green cities and climate-resilient infrastructure.
Published
03/04/25