Energy & Utilities
From The Report: Egypt 2020
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Egypt’s energy sector has traditionally been defined by the country’s status as the largest oil producer outside of the Organisation of the Petroleum Exporting Countries and the third-largest producer of dry natural gas in Africa. Its control over the Suez Canal, meanwhile, places it at the centre of the global energy network, safeguarding shipments between the Gulf, Europe and North America. In recent years the government has implemented an energy strategy aimed at eliminating power shortages and harnessing the private sector to broaden the range of energy inputs. The fruits of this effort are a transformation of a power deficit into a power surplus, the revitalisation of Egypt’s liquefied natural gas sector, and the emergence of solar and wind industries that are establishing the country as a leader for renewables.

Articles from this Chapter

Overview

Firing up: New hydrocarbons projects and a push for renewables seek to make Egypt a regional leader in the sector
OBG
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Egypt’s energy sector has traditionally been defined by the country’s status as the largest oil producer outside of the Organisation of the Petroleum Exporting Countries (OPEC) and the third-largest producer of dry natural gas on the Africa continent. Its control over the Suez Canal, meanwhile, places it at the centre of the global energy network, safeguarding shipments between the Gulf, Europe and North America. In recent years the government has implemented an energy strategy aimed…

Analysis

Place in the sun: Investment in new projects and production capabilities is building momentum in an effort to become a centre for solar energy
OBG
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A combination of factors is driving demand for solar power in Egypt. According to the European Bank for Reconstruction and Development (EBRD), the cost of electricity produced by renewable projects has gradually decreased over recent years to become more competitive than traditional hydrocarbons-based sources. The government’s long-running effort to reduce the budgetary support it has historically provided fossil fuels has coincided with this trend: Egypt nearly halved its projected subsidy…

Analysis

Flow plan: Increasing private investment and constructing new desalination facilities to tackle water shortages
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Egypt’s rapidly expanding population and increasingly intensive agricultural activity have made the sustainability of its water resources an issue of national security. In the past year the government has launched a strategy aimed at solving its water challenge, and its implementation is generating some of the nation’s biggest private investment opportunities. External Pressures Egypt relies on the Nile for 90% of its water supply and is therefore vulnerable to any changes in upstream…