Background

PAEM Stages

-Completion of governance and institutional frameworks

-Support trade at the sub-regional level

Implementing a transitional regional market design focusing on identifying and expanding trade opportunities.

Expanding the transitional regional market’s functionality, focusing on unbundling TSOs, and introducing wholesale competition.

Moving toward an ultimate regional market design, focusing on full wholesale competition, which is supported by several financial markets.

Achieving a fully integrated Arab regional market, focusing on a fully interconnected and synchronized Arab electricity network.

Implementing a
transitional regional
market design focusing
on identifying and
expanding “bilateral”
trade opportunities

Forming Market
Committees

Regional-market institutions
will be formed to cover all
Arab countries, including a
Secretariat, Regulatory
(ARC), and an Arab TSOs
Committee

Infrastructure readiness

Strengthening and improving
the efficiency of existing and
planned interconnections

Scaling up commercial
bilateral trade

Introducing transitional
pricing mechanism to
promote regional trade
opportunities by utilizing
most-efficient plants in the
region

Completing governance
framework

Finalizing market institutions
bylaws (secondary
documents)

Enforcing secure regional operations

Improving reliability of
regional operations through
the Arab Grid Code

Deepening electricity
trade knowledge

Establish tailored
capacity-building programs
for stakeholders to increase
the value of national and
international power-system
assets