The Ministry of Electricity and Renewable Energy
The Ministry of Electricity and Renewable Energy (MoERE) of the Arab Republic of Egypt has received a financing from the Agency Française de Development (AFD) to provide a technical assistance to 'Support the Implementation of Key Measures towards the Reform of the Energy Sector in Egypt". The objective is to modernize the energy sector and increase the renewable energy penetration in the energy mix according to Integrated Sustainable Energy Strategy (ISES) 2035.

In this context, the MoERE aims to improve Performance of distribution companies and incentivized regulations through:
1- Performance of distribution companies and incentivized regulations
The MOERE of the Arab Republic of Egypt hereby invites consulting firms to submit their Expressions of Interest for the above consultancy service project.


The Ministry of Electricity and Renewable Energy (“MoERE”) of the Arab Republic of Egypt has received financing from the Agence Française de Développement (“AFD”). It intends to use part of the funds thereof for payments under the following project: Comprehensive Framework Technical Loss Assessment in Distribution Network.
The Agence Française de Développement (AFD) a bilateral financial institution implementing French development policy financing- (“The Grand Financier”) has agreed to provide a budget support financing to the Government of Egypt (GoE) to accompany the implementation of the energy reforms that it deems essential for the sustainable development of the energy sector. This support includes technical assistance (TA) to the Ministry of Electricity and Renewable Energy (MoERE) and its affiliates (jointly referred to as “The Client”) on the topic concerned with procurement and coordination expert (“The Assignment”). This assignment is part of the TA Program supporting actions and policy reforms for the Egyptian energy transition.
Within this context, the AFD has agreed to make available to the GoE a Global Grant of up to 1 million Euro (EUR 1,000,000) to finance technical assistance (the "Project") aiming at supporting the implementation of key measures towards the reform of the energy sector in Egypt and under the objectives presented in this Request for Expressions of Interest “REoI”.
The performance of distribution companies (DISCOs) is vital for achieving energy efficiency and sustainability goals. Through incentivized regulations and strategic partnerships, DISCOs need to reduce losses, improve service delivery, and contribute to a more reliable energy system. By focusing on performance metrics and leveraging innovative solutions, DISCOs can enhance their operational effectiveness and drive positive change in the energy sector.
The Services of the Consultant shall consist of, but not limited to the following:
• Comprehensive regulatory analysis and review current status of the discos: Examine the current legislative and regulatory framework that oversees distribution companies (discos), taking into account market regulations, tariff policies, compliance requirements, and service quality guidelines. Assess the ways in which the financial incentives, subsidies, or fines currently used for discos promote operational effectiveness and service quality, and examine the discos' present operational performance, taking into account key performance indicators (KPIs) such client satisfaction, service reliability, and electrical distribution losses.
• Case studies and international best practices: Global benchmarking thorough analysis of the best practices adopted by high-performing distribution companies globally. The consultant should select case studies in which the performance of distribution companies was significantly enhanced by incentive rules, such as by reducing losses, improving service reliability, and summarize the most important key lessons from case studies and international best practices, and offer suggestions for how they might be adjusted or used for the local distribution industry and regulatory agencies.
• Governance and auditing framework: Evaluate the discos' current governance structure, taking into account management procedures, board configurations, and ownership models (public, private, or mixed); examining the twelve KPIs established by EgyptERA, which are used to assess distribution corporations under incentive regulations also assess the discos' internal auditing procedures then find any shortcomings in the current auditing framework, carry out a comprehensive gap analysis, and Make sure that auditing and governance procedures comply with national and international best practices, particularly with regard to the regulation of rewarded performance.
• Technical and economic modelling for investment analysis based on the regulatory incentives: Develop models to simulate the discos' technical performance, paying particular attention to KPIs such as demand growth, grid modernization, energy losses, and reliability (SAIDI, SAIFI). The models should forecast how performance can be enhanced by technical interventions (such as smart grid technology, increased metering, and improved distribution infrastructure); Use economic modeling to assess the advantages and disadvantages of certain investments discos could undertake in order to take advantage of the tax breaks. This covers return on investment (ROI), capital expenditure (CapEx), and operating expenditure (OpEx), and evaluate the financial risks connected to various investment scenarios, such as regulatory changes, shifting demand, or cost overruns.
• Performance metrics and data driven incentives for all distribution companies: Create a framework for gathering data by determining the kinds of information needed to track each performance metric and where to find it, create incentive programs that compensate discos for reaching predetermined performance goals based on performance metrics, and make sure incentive structures are in line with each disco's actual performance patterns by using the data gathered to dynamically modify them.
• Business models optimization based on the assessed KPIs: Assess current business models, this includes examining revenue streams, cost structures, operational strategies, customer engagement practices, and regulatory compliance, Analyze how the distribution companies' business objectives align with their KPI’s, and to identify gaps between the current business models and the present business models, use the evaluated KPIs.
• Advanced capacity building program for the governance framework implementation and the performance metrics: Design a capacity-building program that addresses the needs of different groups within the distribution companies, conduct a gap assessment of the current skills of the staff within the discos, especially those involved in governance, regulatory compliance, and performance management, Create training modules that cover the fundamentals of governance, including transparency, accountability, and regulatory compliance. Also, capacity-building program should focus on the practical implementation of governance frameworks, provide detailed training on how to understand and interpret KPIs specific to the distribution companies, how KPIs are linked to performance-based incentives. Finally, implement a system to monitor and evaluate the effectiveness of the capacity-building program