Sat, 24 Jun 2023 - 04:31 GMT
Sat, 24 Jun 2023 - 04:31 GMT
CAIRO - 24 June 2023: Egypt's electricity sector continues to show promising growth, as the total generated and purchased electricity increased by 1.5 percent in January 2023 compared to December 2022, according to the monthly report from the Central Bank of Egypt.
During this period, generated electricity saw a rise of 1.4 percent, while purchased electricity from energy-producing investment projects surged by 2.7 percent.
The distribution of electricity usage, which accounts for 79.8 percent of the total generated and purchased electricity, revealed that 36 percent was consumed for household purposes, 30.1 percent for industrial purposes, 27.3 percent for other uses, 5.2 percent for commercial purposes, and 1.4 percent was sold to international interconnection countries.
Over the past eight years, Egypt has successfully added 31,000 megawatts of electricity generation capacity, bringing the total capacity to 59,900 megawatts.
This expansion included the addition of steam, combined cycle, gas, and diesel power plants through 17 new projects with a total capacity of approximately 28,676 megawatts.
Additionally, Egypt has invested in electricity production from renewable sources, with 1,634 megawatts from wind energy and 1,631 megawatts from solar energy.
The government has also been working on the implementation of the electricity interconnection project between Egypt and Saudi Arabia, aiming to exchange 3,000 megawatts of power. The project is expected to be completed by 2026.
Furthermore, the first phase of the electricity interconnection project between Egypt and Sudan, with a capacity of 80 megawatts, has already been operationalized, and preparations are underway for the second phase, which will increase the transmitted capacity to 240 megawatts, with a potential to reach 300 megawatts.
Moreover, studies have been conducted for the electricity interconnection between Egypt, Cyprus, and Greece through Crete Island.
Since 2018, the Egyptian government has taken significant steps to support the electricity sector, attract foreign investments, and expand the infrastructure for electricity transmission and distribution.
As a result, the sector has become more competitive, with numerous international companies competing for market share and intensively investing in the country.
Looking ahead, it is expected that Egypt's total electricity generation will increase by 38 percent to reach 284 terawatt-hours by 2032. Net consumption is also projected to rise from 166.4 terawatt-hours at the end of 2022 to 227.2 terawatt-hours in 2032, indicating a potential surplus for exports.
The report indicates positive growth rates in private investments in Egypt's electricity sector, signaling a promising outlook for the development of renewable energy sources in the medium to long term.
This is expected to enhance competitiveness and attract more foreign investment, especially as Egypt plans to increase the share of renewable energy sources, including hydropower, in its electricity mix to 37 percent of total production by 2035. This further strengthens the positive outlook for long-term growth of renewable energy sources in the country.