Egypt to allow investors to sell electricity to citizens by 2021
According to the government’s ambitious plan, investors will be allowed to demand to buy a certain amount of power generated by the national grid and sell it back to citizens or establish private power plants, be it traditional or renewable energy.
Minister of Electricity Mohamed Shaker said in press statements that the sector’s makeover will be achieved by “liberalizing the power prices and opening the door for competition between investors, which will eventually benefit the citizens.”
Investors will be enabled to trade in electricity as of 2022, according to Shaker, who explained that liberalizing the power price will provide citizens the right to choose the lower price and better quality offered by different investors.
Shaker said that the ministry will continue to provide electricity to citizens through a unified price for kilowatt after the subsidies are lifted.
The ministry’s plan to provide a fixed price for kilowatt/hour is linked to its plan to expand in renewable energy projects, besides raising the efficiency of power plants to less fuel consumption.
CAIRO - 12 June 2018: Minister of Electricity Mohamed Shaker announced Tuesday in a press conference new hikes in electricity prices. According to Shaker, the overall increase does not exceed 26 percent, while the average hikes in bills for housholds amount around 24 percent.
Minister Shaker further highlighted that modern technologies used in generating electricity in Siemens’ megaprojects in Beni Suef, Burulus and the New Administrative Capital with a capacity of 14,400 MW “savefuel worth more than $1billion annually.”
Refurbishing the old power stations and using more of the modern turbines are on the ministry’s radar to avoid price hikes and guarantee a better quality service.
Egypt has started a gradual removal of energy subsidies since 2016, which is set to be finalized in 2021. The move is meant to lessen the burden on the ailing budget, seeking to direct the expenditure to restructure the electricity sector and guarantee diverse energy sources. Renewable energy share in the grid is expected to hit 42 percent by 2035.
Coupled with the 2016 Egyptian pound floatation consequences, Egyptians have witnessed unprecedented hike in prices of services, food items and energy bills.