MIDDLE EAST AND NORTH AFRICA: Pan-Arab Regional Energy Trading Platform (PARETP) Phase 2.1

The second phase of the Pan Arab Regional Electricity Trading Platform, part of the MENA Climate Change Action Plan, aims to create and operationalize the Pan-Arab Electricity Market (PAEM). This will facilitate large-scale renewable energy integration and improve supply-side energy efficiency. Building on the outcomes from PPIAF-supported Tranches I and II, the initiative includes preparing prefeasibility studies for key projects, market design work, and a pricing mechanism pilot. The PAEM roadmap, targeting full development by 2038, is now in its second stage, focusing on advancing electricity trade in existing cross-border transmission infrastructure. The PAEM governance framework is stipulated by General and Market Agreements, enacted by regional committees as approved in the 2017 PAEM Memorandum of Understanding by 15 Member States. The PAEM Secretariat was established in 2022, and two market committees are being formed. The initiative also included a pilot to enhance institutional capacity and operational coordination at the PAEM level.