Driving capacity and efficiency in egypt’s power sector.
Following the success of the 1st Egypy Energy Investment Summit, the meeting will once again come to Cairo between 21th and 23rd February 2017. Egypt’s government, regulators and public sector stakeholders will gather to look into strategies to increase private investment into Egypt’s power sector and discuss the private sector’s role in recently agreed power and infrastructure development deals.
Over the last five years, Egypt has changed considerably – both politically and in regards to its energy needs. The success of the government to initiate its investment strategy has been both swift and effective.
It is therefore critical for investors to understand from the government the priority focus of investment, and the longer term guarantees being provided to protect international investment.
No previous forum will have provided such a focused platform for investment generation into Egypt, re-igniting the success of its industrial sectors and contributing significantly to employment and energy access for all Egyptians.
What’s happening in the sector?
With a chronic electricity supply shortage, Egypt is in desperate need of additional generation capacity of 13 GW to meet soaring domestic power demands over the next five years.
Considering its vast array of natural resources the country is poised to become one of Africa’s leading renewable energy markets; the solar PV and wind markets are estimated to each grow to around 2 to 3 GW over the next 5 years.
Egypt has a goal of increasing its share of new & renewable energy to 20% by 2020 (the country will procure 4.3 GW of solar and wind power production by 2017), and is also seeking to diversify its energy mix by using coal to fuel power plants. As a result, the Egyptian government is ready to explore partnerships with international investors and developers who can contribute to making these energy goals a reality.
Investor confidence is growing following the success of renewable energy tenders earlier this year, and boosted by an investment of US$17 billion into the country’s oil & gas sector by foreign oil companies.
The government is putting into action revolutionary measures to increase companies’ appetites to invest and engage with the gas sector. Recent gas field discoveries and regulatory changes are making Egypt’s gas sector a must-be place for both suppliers and investors.
In order to provide a reliable supply to a massive energy demand, Egypt is looking for a balanced diversification of its energy mix. Coal is planned to contribute by generating 10% of Egypt’s energy capacity by 2030. Over the next three years, the EEHC wants to award contracts for 12.5 GW of coal-fired power generation.