Written by: Suhaib Shams
The Egyptian government continues to implement its ambitious plans to develop the energy sector and raise its efficiency by pumping total investments approaching 5 trillion pounds into electricity production, transmission, and distribution projects, with the aim of meeting growing demand, enhancing the capabilities of the national grid, and sustaining electricity supply.
Volume of investments and their distribution in the energy sector
The energy sector in Egypt has witnessed a radical transformation, as total investments were distributed to include about 2.7 trillion pounds for electricity production projects from thermal and renewable sources, 1.6 trillion pounds for the Dabaa nuclear power plant project, in addition to 646 billion pounds for electricity transmission networks, and 110 billion pounds for developing and upgrading distribution networks, while working to localize the electrical equipment industry and increase the percentage of the local component in projects.
Installed capacities and expansion in renewable energies
The total installed nominal capacities on the national grid reached about 64.4 gigawatts, including 10.5 gigawatts from renewable energies, with serious plans to raise the contribution of renewable energy to 45% of the energy mix by 2028. Current expansion plans include adding massive capacities from wind and solar energy and battery storage systems, in cooperation with the private sector to reduce reliance on traditional fuel and lower carbon emissions.
Fuel consumption rationalization and electrical interconnection projects
Operational plans and the integration of renewable energies have contributed to reducing the rate of fuel consumption for producing a kilowatt-hour, leading to the saving of more than 65 billion cubic meters of natural gas with an economic value exceeding 38 billion dollars. On the other hand, the state continues to enhance electricity interconnection projects with neighboring countries, particularly the interconnection project with Saudi Arabia, which has reached the operational testing stages, alongside ongoing studies for the interconnection project with Greece to exchange energy and support regional supply security.
