Country Overview
The Arab Republic of Egypt (Egypt) is bordered by Libya, Sudan, Red Sea, Israel, and the Mediterranean Sea. The population of Egypt is approximately 113.28 million people.
In 2022, Egypt’s economy was ranked 32nd in in the world in gross domestic product (GDP). The country’s economy is dependent on the export of refined petroleum, crude oil, natural gas, nitrogenous fertilizers, and gold.
Environmental Policies
In 2016, Egypt signed the Paris Climate Agreement, committing to “high CO2 mitigation levels” by phasing out energy subsidies by 2021. Egypt also committed to the development of new zero-carbon emission power plants.
In 2020, the Egypt announced the 2035 Integrated Sustainable Energy Strategy, which makes the development of renewable energy a priority. The government’s goal is to increase the supply of electricity from renewable sources to 20% by 2022 and 42% by 2035.
Power Generation Capabilities
In 2021, 100 % of the people in Egypt had access to electricity. In 2022, the state-owned electric company, Egyptian Electric Holding Company used natural gas (66.3%), oil (22.5%), and renewable energy (11.2%) to generate electricity in Egypt. Hydropower, wind, and solar are the dominant types of renewable energy used to generate electricity in the nation.
Recent utility scale, renewable energy projects in Egypt include:
- 700 MW High Voltage Transmission Line Project – Greek infrastructure company, Copelouzos Group is moving forward with plans to lay a submarine cable to link 9,500 MW capacity of wind and solar projects in Egypt to Greece. The project is forecast to be commissioned in 2028.
- 500 MW Wind Project – German multinational, Siemens AG is continuing work on the Red Sea Wind Energy project, located in the Gulf of Suez, governorate of the Red Sea. The project is forecast to be commissioned by year-end 2023.
- 262 MW Wind Farm – In December 2019, a multi-national joint venture company commissioned the Ras Ghareb Wind project, located in the Gulf of Suez, governorate of the Red Sea.
- 252 MW Wind Project – Danish wind turbine company, Vestas is continuing work on the Gulf of Suez 1 wind project, located approximately 150 miles southeast of Cairo. The project is scheduled to be commissioned by year-end 2023.
- 250 MW Wind Project – In August 2021, Dutch renewable energy company, Lekela Power commissioned the West Bakr Wind project, located approximately 150 miles southeast of Cairo.
- 200 MW Solar Project – In October 2022, Saudi Arabian company, Acwa Power commissioned the Kom Ombo solar power plant, located approximately 325 miles south of Cairo.
- 50 MW Solar Project – In September 2022, German solar company, Belectric commissioned a solar project in the town of Zaafarana, located approximately 100 miles southeast of the capital, Cairo.
Conclusions
The first major oil discovery in Egypt was the Gemsa Field in 1908. In 2022, Egypt was the 17th largest natural gas and 30th largest crude oil exporting country in the world.
The export of hydrocarbons is key component in Egypt’s economy. In 2021, Egypt exported U.S. $4.77 Billion of refined petroleum, U.S. $3.69 Billion of crude oil, and U.S. 3.5 Billion of natural gas.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
In 2021, Egypt replaced coal-fired power generation plans with domestic natural gas power plants. Egypt is now replacing oil-fueled power plants with green, low-cost renewable energy.
Egypt has significant undeveloped renewable energy resources, including onshore wind, offshore wind, solar, hydropower, and biomass. Egypt’s energy strategy is to develop the nation’s significant renewable energy resources and to become a green energy exporter to Europe.
Egypt will begin exporting green energy to Europe once the 700 MW high voltage transmission line from Egypt to Greece is completed in 2028. Electricity powered from Egyptian wind and solar plants will then replace fossil fuel plants supplied by Russian natural gas. Egypt’s future may then become a clean, green energy exporter.
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jackkerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.