Energy firms seem to be excited about P2P renewables projects: Some 20 private sector energy players have voiced their interest in supplying electricity to other private sector companies through renewable energy projects under the recently approved peer-to-peer (P2P) system that was given the regulatory greenlight only last month, Al Arabiya reported, citing sources from the Electricity Ministry.

Excited might be an understatement: Some unnamed energy companies said they want to invest upwards of USD 1 bn in renewable energy projects under the agreements with capacities exceeding 1k MW over two years, the sources added.

Hold on a second, what is the P2P system? The Egyptian Electric Utility and Consumer Protection Regulatory Agency approved (pdf) the new system in March, enabling private sector companies to produce and sell renewable energy via the national grid to companies in the private sector. The price for the energy is agreed upon between the two private companies and the Egyptian Electricity Transmission Company only charges a fee for the use of its network.

Who’s interested? Interested energy companies include local players such as our friends at Infinity in addition to KarmSolar, Elsewedy Electric, and Enara, according to the outlet. The initiative has also caught the attention of firms outside the country, including the UAE’s AMEA Power and Alcazar Energy, Norway’s Scatec, and the state-owned French energy giant EDF. A senior government official confirmed to Enterprise that Infinity, Elsewedy Electric and Scatec are among the interested companies.

The first step towards an open electricity market? The initiative will act as a trial phase as part of the country’s plans to transition to a fully open electricity market by 2025, our source told us. An open market for electricity sales is expected to accelerate the implementation of renewable energy projects and draw USD bns of investments to the sector, the source added.

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