Egypt Energy Situation

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Egypt

Capital:

Cairo

Region:

Middle East & North Africa

Coordinates:

26.0000° N, 30.0000° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

1,001,450

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

112,716,598 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

57 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

395,926,075,163 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

3,512.58 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

100.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

-7.39 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

97.93 (2014)

Source: World Bank

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Introduction

The Arab Republic of Egypt is located in North Africa and borders with Libya in the West, Sudan in the South and Palestinian territories and Israel in the East, while in the North, it is washed by the Mediterranean. Its population is mainly concentrated along the river Nile, as the rest of the country's territory is largely desert. 

Most parts of the country have a hot desert climate with extreme heat occurring during summer. An exception is the northern Mediterranean coast which receives more rainfall during winter and has a generally more moderate climate.

Fig.1: Map of Egypt showing Examples of N.G. & C.O. Pipelines, Ports, Fields..etc (EIA, 2018)

Egypty is a country with a high potential of natural resources: precious stones, natural gas, oil, coal and large reserves of fossil fuel enery sources; approximately 4189 billion barrels of oil reserves and an estimated 77200 billion cubic meters of natural gas resreves, as the reserves are in the form of both mainland and coastal deposits.

While more than 90% of the Egyptian generated electricity comes only from oil and natural gas, the major problem that Egypt encounters, specially in the energy-sector is the dynamic growth of population, which is estimated by around 1.3% per year, consequently increasing demand, which eventually fastens the rate of deploiting the country's major resources.

According to the US Energy Information Administration (EIA), it is the largest non-OPEC oil producer in Africa and the third largest dry natural gas producer on the continent, following Algeria & Nigeria. 

The country also represents a vital role-player in the international energy market, as a major transit route, by operating the Suez Canal and the Suez Mediterranean Pipleline (SUMED), through which the oil is shipped from the Persian Gulf to Europe and the United States.

Energy Situation

Historical Background and an Overview of the Main Energy Sources

Egypt has been known to mainly depend, in all its energy-related activities, on three major sources: oil, natural gas and the hydroelectric power generated from the large dam projects over the Nile: the High Dam, Aswan I & Aswan II.

Despite being a major producer and net exporter of oil, especially in the 1990s, when its oil production peaked, reaching approximately over 900000 bbl/day, Egypt has become a net oil importer around 2009/2010. Thus can be traced back to both economic and population accelerated growth, which accompanied the beginning of the new millennium, leading to an increase in consumption by about 3% per year, resulting in growing of demand, and falling in production, that could roughly meet consumption requirements, resulting in a significant drop in the country’s oil refinery output since 2009.

During the period of the late 1990s/early 2000s, Egypt has witnessed a state of proliferation of discovering and exploiting huge natural gas reserves around the country, which drove the country to emerge as a key-role player in the region as a natural gas producer and exporter. Mainly, due to the same reason as in oil, consumption of natural gas has approximately increased by 7% per year during the first decade of 2000s, and production has noticeably decreased by around 3% yearly during the period of 2009-2013, consequently limiting its natural gas exporting capacity to only 5% of its total production by 2013, and eventually driving the country to start signing importing agreements in the following years of 2014 and 2015.

Table.1: General Statistics on Oil & Natural Gas Situation in Egypt

	Oil	Natural Gas
Total Production	680,000 bbl/day	2 trillion cubic feet/day
Global Production-Share	0.72%	1.7%
Proven Reserves	3,900,000,000 bbl	65.3 trillion cubic feet
Global Proven Reserves-Share	0.2%	1%
% Total Domestic Consumption	41%	53%
Imports	80,000 bbl/day	To Be Updated
Exports	189,000 bbl/day	0.1 trillion cubic feet/year
Export Destinations	EU (56%), India (28%), China (13%), Others (3%)	EU (56%), India (28%), China (13%), Others (3%)

According to reports from American Security Project (ASP) and United Nations Environment Program (UNEP), Egypt has produced approximately 13.2-13.7 billion kilowatt-hours (KWh) of electricity, using hydropower in the period 2012/2013. Hydropower accounts for about 9% of the total country’s power generation, and around 3% of the country’s total energy consumption, however, the majority of the Nile hydropower’s capacity in Egypt has already been exploited and is on the decline.

Energy Access

According to the latest Tracking SDG7 Report on The Energy Progress, that was jointly prepared by: International Energy Agency (IEA), International Renewable Energy Agency (IRENA), United Nations Statistics Division, World Bank Group and World Health Organization, the state of energy access through Egypt is illustrated trough the following table and figures:

Fig.2: Total Energy Access in Egypt 1990-2015 (Tracking SDG7, 2018)

The report shows that since around 2014/2015, the total Egyptian population has had access to reliable energy sources, and only 2% of the whole population has no access to clean cooking.

Fig.3: Urban & Rural Energy Access in Egypt 1990-2015 (Tracking SDG7, 2018)

Table.2: Percentage of Egyptian Population's Access to Electricity & Clean Cooking

	Access to
	Electricity	Clean Cooking
% of Population	100%	98%

Production

Table.3: Egypt’s Production of Different Energy Sources during the 2000s in Ktoe

	2000	2005	2012	2013	2014	2015	2016	2017
Coal	20	14	0	0	0	0	0	0
Crude Oil	33189	30111	32142	29537	32825	33210	30835	31885
Natural gas	18555	35901	54839	50143	39084	34763	34763	35362
Electricity from Fossil Fuels	5302	8211	12250	12250	13431	14355	14514	14679
Hydro Electricity	1260	1087	1112	1113	1188	1155	1171	1187
Electricity from Renewables	12	47	139	139	145	137	150	165
Refinery/Oil Porducts	23449	28561	24754	21836	25348	25676	26357	270565

Installed Capacity

With accordance to the EIA's report on Egypt (2018), the following graph and pie-chart highlight the installed capacity of different energ sources in the country from 2007-2016 in terms of fiscal years.

Fig.4: Egyptian Installed Capacity of Different Energy Sources per Fiscal Year 2007-2016 (EIA, 2018)

Fig.5: Egyptian Installed Capacity of Different Energy Sources by the Fiscal Year 2015-2016 (EIA, 2018)

Consumption

Egypt is by far the largest consumer of oil and natural gas in Africa, showing 22% of petroleum and other liquids of the continent's total consumption and 37% of its dry natural gas consumption.

The main drivers of the rapid growth of the country's consumption of oil and natural gas can be summarized in the follwoing:

1. The increased industrial output.
2. Economic growth.
3. Intense extraction projects of oil and natural gas.
4. Population growth.
5. The inclining rate of private and commerical vehicle sales.
6. The generous subsidy policy, that is focused on energy products.

Through this sub-chapter, different contrsuctural data will be preseneted, using different sources, to get as holistic view as possible of the energy cosumption situation in the country.

Table.4: Egypt’s Primary Energy Consumption from Mid 60s - latest 2000s in Mtoe

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Rate	7.8	10.5	28	37.3	48.4	60.5	78.4	84.4	88.2	91.6

Table.5: Egypt’s Primary Energy Consumption by Fuel 2016-2017 Mtoe

	Oil	Natural Gas	Coal	Nuclear	Hydro-Electric	Renewables	Total
2016	42	42.4	.2	-	3	.6	88.2
2017	39.7	48.1	.2	-	3	.6	91.6

Table.6: Egypt’s Final Consumption of Different Energy Sources during the 2000s in Ktoe

	2000	2005	2012	2013	2014	2015	2016	2017
Coal	453	203	204	188	188	200	211	224
Oil	17898	20156	27009	22573	26333	35213	36086	37028
Natural Gas	4274	9182	12719	18202	19505	20956	21446	21960
Electricity	5559	7918	12060	12324	12306	12668	13134	13630

Table.7: Egypt’s Industrial Consumption of Different Energy Sources during the 2000s in Ktoe

	2000	2005	2012	2013	2014	2015	2016	2017
Oil	5461	5548	3716	3279	3133	6369	6713	7080
Natural Gas	2072	5567	6649	6789	8002	9083	9303	9536
Electricity	2111	2812	3430	3500	3288	369	3488	3612
Coal	453	203	204	188	188	200	211	224

Table.8: Egypt’s Transport Consumption of Different Energy Sources during the 2000s in Ktoe

	2000	2005	2012	2013	2014	2015	2016	2017
Oil	9060	9371	15547	12362	16416	16892	17098	17312
Electricity	-	-	44	44	45	46	46	47

Fig.6: A Pie-Chart of the Egyptian Primary Energy Consumption in the Year 2016 (EIA, 2018)

Import and Export

Egypt is a net exporter of crude oil and natural gas, however, the combination of increasing consumption and declining production has led to a decline in natural gas exports since 2009, as the government started to divert natural gas supplies from exports, in order to staisfy domestic demand, eventually turning the country into a natural gas importer since 2015. 

In terms of coal and peat, Egypt is a net importer, and coal imorts are evenen expetced to increase in the short-medium term, since the Egyptian government has approved the industrial use of coal in April 2014, and in the same year signed a construction deal for the first coal-fired power in the country.

Subsidies

In 2013, the Egyptian government spent 120 billion Egyptian pounds (about 13.8 billion EUR) on fuel subsidies, which equals 7% of the GDP. These costs in combination with economic stagnation have contributed to the increasing deficit, which reached about 12% of GDP in 2013. In order to alleviate this burden, the Egyptian government announced spending cuts on energy subsidies in June 2014. The Financial Times reported that these subsidies are going to be cut by almost a third .

Electricity

General Data

Table.9: The General Electricity Situation in Egypt

	Electricity
	Production	Consumption	Exports	Imports	Installed Generating Capacity
Rate	171.9 billion kWh	150.4 billion kWh	1.158 billion kWh	43 million kWh	38.88 million kWh
World Ranking	24	25	57	106	27

Electricity Access

Acoridng to the U.S. Central Intelligence Agency (CIA)'s 2018 report, only around 300,000 people of the whole Egyptian population is currently without access to electricity.

Table.10: Electrification Percentages in Egypt

	Electrification
	Total Population	Urban Areas	Rural Areas
%	99.6	100	99.3

Installed Capacity and Generation

Table.11: Percentages of Different Electricity-Generating Energy-Sources in Egypt

	Electricity Generated From:
	Fossil Fuels	Nuclear Fuels	Hydroelectric Plants	Other Renewables
% of the Total Installed Capacity	90.5	0	7.3	2.2
World Ranking	58	83	125	115

Between 2011/2012 and 2012/2013, the total installed capacity increased about 6 %, reaching 30,803 MW, due to added thermal plants. The installed capacity development by type of generation since 2008 is outlined in table 12.

Table 12: Installed capacity development by type of generation (in MW) 2008-2013

	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013
MW
Renewables	425	249	687	687	687
Steam	11,458	11,458	12,859	12,684	13,808
Hydro	2,800	2,800	2,800	2,800	2,800
Combined Cycle	7,178	7,137	9,327	10,077	10,080
Gas	1,641	2,841	1,376	2,826	3,428
Total	23,502	24,762	27,049	29,074	30,803

In addition, Egypt has 30 decentralized power plants, mostly diesel and gas turbine units which are not connected to the national grid. The combined installed capacities of these plants added up to 224 MW in 2012/2013. Approximately 234.5 GWh of electricity were supplied to local users including tourist resorts.

Egypt is a net exporter of electricity, importing 77 GWh, while exporting 474 GWh of electricity in 2012. In 2012/2013, the average percentage network losses were 11.02%.

Between 2001 and 2012, electricity production rose from 83,282 GWh to 164,364 GWh. The main source for the production of electricity is gas (66%) followed by hydro (18.2%) and oil (15.6%). The Egyptian Electricity Holding Company (EEHC) operates with five-year plans. The current one (2012-2017) foresees the installation of 15.000 MW additional capacity. However, due to the increasing demand, the reserve margin is still expected to remain tight.

Consumption

The main consumer of electricity in Egypt is the residential sector which accounts for 42% of the total consumption, followed by the industrial sector (28%). The consumption of the residential sector has been steadily increasing in the recent years. According to the Ministry of Electricity and Energy, this is due to two factors: the expansion of residential compounds and new communities as well as the use of domestic appliances, air conditioners in particular, during hot weather. The development of the electricity consumption per sector is outlined in table 13.

Table 13: Electricity consumption by sector (GWh) 2008-2013

Sector	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013
GWh
Industries	37,273	38,916	40,702	42,098	39,887
Agriculture	4,617	4,834	4,927	5,560	6,230
Utilities	4,714	5,555	5,759	6,010	5,904
Public lighting	6,982	7,050	6,186	6,537	6,210
Governmental entities	5,563	5,443	5,977	6,385	7,664
Residential	43,811	47,431	51,370	56,664	59,757
Commercial & others	8,754	9,674	10,238	10,715	14,605
Total	111,714	118,903	125,159	133,969	140,257

Grid

In 2012/2013, the carrier grid consisted of 43,634 km total transmission lines and cables. The grid is subdivided into six geographical zones, namely Cairo, Canal, Delta, Alexandria and West Delta, Middle Egypt and Upper Egypt. The country’s entire territory is covered. The network is interconnected with the grids of Libya, Jordan, Syria and Lebanon. There are ongoing studies for interconnections with Saudi Arabia, Sudan, the Democratic Republic of Congo, the Eastern Nile Basin (Sudan and Ethiopia) and Greece.

Table.14:Indicators of Egyptian Grid

Category	Installed Capacity	Max Load	Transmission Grid	Generated Energy
Indicator	45192 MW	30400 MW	45000 Km	186320 GWh

Electricity prices

The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to type of consumption (i.e. residential, commercial, industrial) and amount consumed. Since the tariff is higher for higher consumption, there is an incentive to consume less. The lowest category of the residential tariff, up to 50 KWh/month, has remained unchanged since 1993 at 5 piasters (approximately 0.6 €-ct) per KWh.

Since 2007, the government has been trying cut costs for subsidies. In July 2014, electricity prices were increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost.

Renewable Energy

General Data

Table.15: Egyptian Renewable Energy Production from Mid-60s till Latest 2000s in Twh

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Prodcued Capacity	-	-	-	-	.1	.5	1.4	1.9	2.6	2.7

Table.16: Egyptian Renewable Energy Consumption from Mid-60s till Latest 2000s in Mtoe

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Consumed Capacity	-	-	-	-	-	.1	.3	.4	.6	.6

File:Egyptian Electricity Generation from Renewables by Source (IEA, 2017).PNG

Fig.7: Egyptian Electricity Generation from Renewables by Source (IEA, 2017)

File:Generation-Share of Different Renewable Energy Sources in Egypt in 2015 (IEA, 2017).PNG

FIg.8: Generation-Share of Different Renewable Energy Sources in Egypt in 2015 (IEA, 2017)

In 2012, electricity production from renewable energy sources reached 14,855 GWh, which is a share of 9.04% of the total electricity production. While 13,358 GWh (8.13%) were produced by hydropower installations, wind power contributed another 1,260 GWh (0.77%) and solar PV 237 GWh (0.14%).

Hyrdo

Table.17: Egyptian Hydro-Generation from Mid-60s till Latest-2000s in Twh

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Generated Capacity	1.7	6.8	9.1	11.2	14.2	12.6	13	13.7	13.3	13.4

Table.18: Egyptian Hydro-Consumption from Mid-60s till Latest-2000s in Mtoe

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Consumed Capacity	.4	1.5	2.1	2.5	3.2	2.9	2.9	3.1	3	3

Fig.9: Egyptian Hydro-Generation (IEA, 2017)

The latest estimates of the hydropower installed capacity is approimately 2842 MW, accounting for about 7.2-9% of the total generated mix. Also, the ongoing implementation of 32 MW hydropower project in Assiut governorate and a 2400 MW pumping and storage plant in Attaqa-Suez, that is supposed to be operating by 2022, according to the Egypian Ministry of Electriciy and Renewable Energy & the Egyptian Holding Electricity Company.

Table.19: Egypt's Hydroelectric Plants

Operator	Comissioning Date	Installed Capacity (MW)
High Dam	1967	2100
Aswan Dam 1	1960	280
Aswan Dam 2	1985/86	270
Esna	1993	86
Nag' Hamadi	2008	64

 

Wind

Table.20: Egyptian Wind-Power Generation from Mid-60s til Late-2000s in Twh

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Generation Capacity	-	-	-	-	.1	.5	1.4	1.9	2.5	2.5

Table.21: Egyptian Wind-Energy Consumption from Mid-60s til Late-2000s in Mtoe

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Consumed Capacity	-	-	-	-	-	.1	.3	.4	.6	.6

Fig.10: Egyptian Wind-Energy Generation (IEA, 2017)

Egypt is endowed with abundant wind energy resources, with many coastal regions, where high and stable wind speeds are frequent, especially in the Gulf of Suez and the Nile Valley, as wind speed could reach 10.5 m/s at 50m height. 

Table.22: Egyptian Wind Indicators

Indicator	Installed Capacity	Generated Energy	Fuel Savings	CO2 Reductions	Potential Capacities
Value	750-753 MW	12600 GWh	2.7 Mtoe	6.8 Million Tons	30000 MW

Table.23: Egyptian Major Wind Farms

Farm	Za'farana	Gebel El-Zeit	Hurghada
Generated Capacity	547 MW	200 MW	5 MW

Solar

Table.24: Egyptian Solar Production from Mid-60s til Latest-2000s in Twh

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Procution Capacity	-	-	-	-	-	<.1	.1	.1	.1	.2

Table.25: Egyptian Solar Consumption from Mid-60s til Latest-2000s in Mtoe

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Consumption Capacity	-	-	-	-	<.1	<.1	<.1	<.1	<.1	<.1

Fig.11: Egyptian Solar Generation (IEA, 2017)

Though solar energy use in the country is still in its infancy, yet the country has a great potential in the solar sector. With accordance to the EIA's latest report, the country only has 30 MW of installed solar capacity so far. Additionally, there is one solar thermal project, an integrated solar combined-cycle power plant. Here, the solar power partially replaces fossil fuel. The plant has an overall capacity of 140 MW, of which the solar input is 20 MW. More PV projects are in the pipeline, one in Hurghada (20 MW, expected start of operation 2016), and one in Kom Ombo (20 MW, expected start of operation 2016).

Also, the Egyptian government has a huge scheme to boost the solar sector by installing a 1.8 GW solar park, which to be developed in Benban. As part of reaching that goal, the Egyptian government has closed two deals on two different fronts; the 1st is with Norway's Scatec Solar to build six solar photovoltaic plants with a combined capacity of 400 MW, while the 2nd is with Saudi firma Acwa for another three solar photovoltaic plants with a capacity of 120 MW.

Table.26: Egyptian Solar Potential Indicators

Indicator	Direct Solar Radiaton	Sunshine Duration	Potential Capacities
Value	2000-3000 kWh/m2/year	9-11 hours/day	>50000 MW

Policy Framework, Laws and Regulations

General Information

The combination of increasing demand, decreasing production and high subsidies for fuel have put a strain on the Egyptian energy sector and led to an enormous public deficit. As of June 2014, Egypt owed 7.5 billion USD and counting to foreign oil and gas companies alone . In order help meeting the energy demand and to prevent an Egyptian energy crisis, Gulf countries have been providing financial aid to Egypt. However, this kind of aid is expected to decrease as the Gulf countries are impacted by the falling oil prices of 2015.

One topic dominating energy policy debates in Egypt is the use of coal. In April 2014, the government approved the industrial use of coal. This is especially relevant for cement factories, as these are particularly energy intensive and have occasionally been cut off from the energy supply as the government's priority was to preserve gas for power generation.
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Renewable Energy Policy

In February 2008, the Egyptian government adopted a New National Renewable Energy Strategy. It sets out the ambitious goal to achieve a generation of 20% of the country’s electricity from renewable resources by 2020. 12 percentage points (7,200 MW) are supposed to be covered by wind energy. One third of the planned RE capacity will be state-owned projects financed through public investments by the New and Renewable Energy Agency (NREA) in cooperation with international financing institutions. Two thirds will be private sector projects, which will be supported by policies structured in three phases:

• Phase 1 will adopt competitive bids through issuing tenders requesting the private sector to supply electricity from renewable energy sources.
  
• In Phase 2, a feed-in-tariff will be implemented, in particular for medium and small size projects.
  
• Phase 3 allows investors to build and operate renewable energy power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid.

Also, an RE support fund is supposed to be established to cover the feed-in tariff payments.

In September 2014, the government approved the issuance of feed-in tariffs for solar PV and wind projects.
The newPresidential Decree 1947/2014 of October 2014provides for fixed feed-in-tariffs over 25 years for PV and over 20 years for wind. These tariffs will be adjusted as soon as the following ceilings are reached: 300 MW of small PV (< 500 kW), 2000 MW of medium PV (500 kW – 50 MW), and 2000 MW of wind. The tariffs are going to be paid according to plant capacity. The details are outlined in a guiding document published by the Egyptian Electric Utility for Consumer Protection and Regulatory Agency (EgyptERA).

The FIT scheme is complemented by Law 203/2014 of 22 December 2014 whereby the Egyptian TSO (EETC) and the local distribution companies are obliged to connect a RES project to the grid. The costs of the connection shall be borne by the producer, while the government shall fund any extension of the grid. They are also obliged to purchase the electricity generated by qualifying projects and, if this is not feasible, compensate the producer.
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Energy Efficiency Policy

Egypt has adopted a National Energy Efficiency Action Plan (NEEAP) (2012-2015) with cumulative energy efficiency targets of 5%. At the Council of Ministers secretariat, there is an EE unit which is the mandated entity for developing and implementing this plan. However, there is no designated energy efficiency agency and no general legal framework for EE measures.
Some steps have been taken to improve energy efficiency:

• Mandatory EE codes for residential buildings (2006), commercial buildings (2009), and government buildings (2011) have been adopted.
  
• Minimum performance standards with mandatory labeling schemes have been adopted for refrigerators, freezers, washing machines, air conditioners, CFLs, and electric water heaters.
  

By 2012, 750,000 m2 of Solar Water Heaters had been installed and 10.25 million Compact Fluorescent Lamps (CFLs) had been distributed. However, there are no buildings which are built according to EE building code and no demonstration projects for energy-efficient buildings.
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Institutional Set up in the Energy Sector

Governmental Bodies and Agencies

The first Ministry of Electricity and Energy (MEE) was established in 1964. Next to supervising all activities related to energy projects, it suggests electricity prices and publishes data and statistics relating to electricity production.

The Ministry of Electricity and Energy established the New and Renewable Energy Authority (NREA) in 1986 for the purpose of bundling activities aiming to promote both renewable sources of energy and energy efficiency. NREA acts as the national focal point for expanding efforts to develop and introduce renewable energy technologies in Egypt on a commercial scale together with implementation of related energy conservation programs. It is responsible for the development, ownership and operation of the governmental wind projects.

The Egyptian Environmental Affairs Agency (EEAA) was initially established in 1982 and restructured in 1994. The EEAA serves as the executive arm of the Ministry of Environment. The agency’s activities are financed by the Environmental Protection Fund, which is funded by donations and grants by national and foreign organizations, as well as fines and compensation awarded by courts of law. Principal functions of the agency include the formulation of environmental policies, the development and monitoring of projects and the implementation of pilot projects. The EEAA is also the national authority in charge of promoting environmental topics between Egypt and third parties.

The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) was established upon decree in 1997. The primary task is to balance the interests of electricity producers, electricity providers and end users. It is supposed to ensure a reliable long term supply of electricity while promoting and supervising environmental protection and operational reliability in the energy sector. It is also responsible for licensing the construction and operation of electricity generation, transmission and distribution facilities as well as for electricity trading.
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Utilities

The government-owned and operated Egyptian Electricity Holding Company (EEHC) coordinates, supervises and monitors the activities of its affiliated companies in the field of production, transmission and distribution of electric energy. The EECH subsidiary EETC (Egyptian Electricity Transmission Company) is responsible for the countrywide transmission of electricity to regional and local distributors.

Others

In the area of fossil power plants, Egypt already works with Independent Power Producers (IPPs). The first contract under a power purchase agreement (PPA) was signed in 1998. In 2012/13, the following IPPs feed a total 33 GWh into the Egyptian electricity grid: Petrochemicals (15 GWh), Carbon Black (1 GWh), Talkha Fertilizer and Ghazl El-Mahaala (17 GWh).

The private sector is also involved via the “Build-Own-Operate-Transfer” (BOOT) scheme. Four steam power plants were operated with the BOOT model in 2012/13 and provided a total of 14,264 GWh. According to EgyptERA, the companies under the BOOT model are Suez Gulf Power Company (4,576 GWh), Port Said East Power Company (4,983 GWh) and Sidi Krir Generating Company (4,705 GWh). The power plants operated by these companies were built in 2001-2003, with an installed capacity of 682.5 MW each. All three BOOT companies were acquired by the Malaysian Powertek Energy in 2006/2007.

The Egyptian Wind Energy Association (EGWEA) is the umbrella organisation, representing the wind energy sector in Egypt. It assists interaction and co-operation between all relevant players with professional involvement in the field of wind energy. The EGWEA is organised in a global network of wind associations. It aims at promoting and supporting the development of wind energy in Egypt by providing the means to facilitate the exchange of technical information, expertise and experience in the wind energy sector. It conducts studies, provides information on tenders and conferences and organises workshops for interested parties. EGWEA is particularly interested in bringing forward wind energy interests of Egypt.

However, the association is also engaged in the promotion of wind energy in developing countries in general.
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Energy Cooperation

At the European level, a Memorandum of Understanding to enhance EU-Egypt energy cooperation was signed in December 2008. The priority areas covered are, among others, the development of the Egyptian energy strategy, including the market reform, the convergence of Egypt’s energy market with that of the EU, the promotion of renewable energy and energy efficiency, the development of energy grids as well as technological and industrial cooperation.

Bilateral Energy Cooperation with Germany

Along with the World Bank, the African Development Bank, the United States, France, the EU and Japan, Germany is Egypt’s leading partner in terms of official development assistance. Egypt is one of the priority partner countries of the German development policy. Since 1963, Egypt has received approximately 6 billion EUR of aggregate commitments from Germany. The current focus areas of the bilateral cooperation are water management, renewable energies, energy efficiency and climate change.

Within the framework of the German development cooperation, two initiatives to promote renewable energies and energy efficiency were launched in 2008:

• The Regional Center for Renewable Energy and Energy Efficiency (RCREEE), based in Cairo. Besides Egypt, other Arab members of the RCREEE are Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Palestine, Sudan, Syria, Tunisia and Yemen. RCREEE formulates and disseminates policies in support of RE and EE in the region and provides a platform for the regional exchange on policy issues and technological questions. In addition, RCREEE encourages the participation of the private sector to promote the establishment of a regional RE and EE industry.
  
• The Egyptian-German High Level Committee on Renewable Energy, Energy Efficiency and Environmental Protection JCEE, is a bilateral Egyptian-German initiative. The JCEE is a platform for energy policy discussion, for developing initiatives for investment as well as institutional projects, awareness and capacity building activities and establishing contacts and exchange between the two countries. The project is financed by the Egyptian Ministry of Electricity and Energy and the German Federal Ministry of Economic Cooperation and Development (BMZ). The implementing partners of the cooperation are NREA and GIZ.

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Further Information

• Egypt's Government Services Portal
  
• Egypt's entry at The World Factbook

References

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