Written by: Salma El-Sakka
Dr. Moustafa Madbouly, the Egyptian Prime Minister, confirmed that the state is currently going through unprecedented economic circumstances as a result of global energy price fluctuations, where the price of a barrel of oil rose from $75 to $110, placing the government before major challenges in securing the financial resources and hard currency necessary to cover the import bill.
Madbouly explained during his participation in the session «The Journey of Egyptian Energy.. National Achievements and Prospects for the Future» within the activities of the Egypt 2026 Forum, that the government is striving hard to avoid burdening the Egyptian citizen with additional burdens as a result of these challenges. He pointed out that the constant trade-off is between two options; either adjusting prices or bearing the subsidy bill through borrowing, pointing to the long-term economic consequences of borrowing and its future cost.
Challenges of the Electricity and Energy Sector
The Prime Minister touched upon the pressures facing the energy sector in light of global price variables, confirming that the financial estimates set in the general budget relied on old fuel prices, which places the state before continuous challenges in providing the necessary needs to ensure the stability of electricity supplies and avoid difficult choices such as power cuts, despite the pressures imposed by global circumstances on state resources.
The Plan for Transitioning Towards Clean Energy
Regarding the state's energy strategy, Madbouly announced raising the ceiling of national ambition in the renewable energy sector, as targets were modified based on the directives of the political leadership to reach 45% of the total energy mix by the year 2028, instead of the previous plan which targeted reaching 40% by the year 2030, within the framework of the state's efforts to enhance energy security and expand reliance on sustainable sources.
