By: Islam El-Sakka
Dr. Ahmed Kouchouk, Minister of Finance, clarified that the Egyptian government adopts a unified vision regarding energy files, which include electricity, petroleum, and mining, as part of a strategy aimed at reducing financial costs and enhancing sustainability. He pointed out that the ministerial group works in daily joint coordination to ensure maximum utilization of resources and reduce burdens on the state budget.
Huge economic returns for renewable energy
The Minister of Finance revealed the direct economic return of new and sustainable energy projects, confirming that the introduction of every single gigawatt of renewable energy into the electrical grid contributes to saving between $200 million and $250 million annually in gas import costs. Through this step, the government aims to introduce an additional 20 gigawatts to the system, which enhances supply stability and significantly reduces the import bill.
Financial sustainability plan and support for exploration
Kouchouk pointed out that the integrated financial sustainability plan approved by the Cabinet for the 2024/2025 fiscal year aims to provide the necessary funding to develop the energy sector, including the introduction of electrical energy storage battery technologies. The plan also included paying the dues of partners in the petroleum sector to encourage them to accelerate exploration and production operations, with the aim of raising production rates to reach previous levels.
Consumption rationalization and fiscal discipline measures
In the context of efforts made to control spending, the minister pointed out the success of government agencies in achieving a 20% savings within the plan targeting a 30% rationalization of gas and fuel consumption for general budget agencies. This success was translated into an indirect financial savings ranging between 7 to 8 billion pounds, as a result of measures that included rationalizing the use of government cars, raising consumption efficiency, and applying the remote working system in some entities.
