The Egypt National Committee aims to promote sustainable energy development in Egypt, as a part of the World Energy Council’s energy vision. As a member of the World Energy Council network, the organisation is committed to representing the Egyptian perspective within national, regional and global energy debates. The committee includes a variety of members to ensure that the diverse energy interests of Egypt are appropriately represented. Members of the committee are invited to attend high-level events, participate in energy-focused study groups, contribute to technical research and be a part of the global energy dialogue.
Energy in Egypt (Arab Rep.)
Egypt’s energy leaders’ perspectives provide an Uncertainties landscape formed around Macroeconomic and Geopolitical issues including Capital Markets, China and EU Cohesion. Action Priorities are led by efforts to promote Renewable Energies and Energy Efficiency, as well as opportunities for a revival of LNG exports.
Capital Markets are seen as the most impactful of the country’s Critical Uncertainties. The Egyptian government wants to reduce reliance on IMF and other credit agencies by raising capital market funds and attracting foreign direct investments. This strategy has led a sharp rise in portfolio inflows in 2019, leading to appreciation of the Egyptian Pound. In order to remain attractive to foreign investors, Egyptian officials are negotiating a two-year non-loan agreement with the IMF.
China is identified as a high impact issue and a key uncertainty. Chinese investments in Egypt have been mainly directed to the energy sector, infrastructure, telecommunications and development projects. So far, the Chinese have injected over US$17 billion into the Egyptian economy. These funds were used for the development of the Suez Canal Economic Zone project, a US$1.2 billion electric train project connecting Cairo to the new capital, and three solar power stations in the Benban solar park. Egypt has become the fourth largest recipient of Chinese investment in Africa.
EU Cohesion is also perceived as a Critical Uncertainty. Although Egypt-EU relations are deeply rooted with several cooperation agreements and support in the energy sector as well as free trade agreements, the ambiguity surrounding Brexit and its impact on Egypt-EU relations is an issue of concern.
Renewable Energies appear as a key Action Priority. While 94% of electricity is generated from fossil fuels, the Egyptian government aims to generate 20% of electricity from renewables by 2022. In 2019, the Egyptian Ministry of Electricity replaced a US$4 billion contract for a 2.65GW coal plant with contracts for a 500MW wind farm and two 200MW solar projects.
Energy Efficiency is another leading Action Priority. The government’s interest in energy efficiency has grown tremendously in the past few years. Several energy efficiency projects have been undertaken both in both the residential and governmental/public sectors. In the residential sector, the “Improving Energy Efficiency of Lighting and Appliances” project was implemented. Important efforts were also made to promote the use of efficient lighting in homes. For the public sector, an initiative launched to improve energy efficiency in government buildings and to convert streetlights to LED.
LNG is also seen as an actionable issue. Egypt became a net exporter of LNG in 2019, after years of being a net importer. This transformation was led by several gas developments in the Eastern Mediterranean, primarily the 850 billion cubic metre Zohr field. The Egyptian Ministry of Petroleum has ambitions to make Egypt a regional gas hub thanks to its infrastructure, ports, natural gas grids, liquefaction and regasification facilities as well as import/export ports. In October 2019, Egyptian Natural Gas Holding Company (EGAS) signed an MoU with Toyota to study the feasibility of an LNG bunkering project in Egypt.