Cairo: Minister of Electricity and Renewable Energy Mahmoud Esmat announced that Egypt has saved $900 million in the past 10 months through energy efficiency measures and reduction in gas consumption, according to a release published by the National Press Authority (NPA). Esmat’s announcement came during a symposium hosted by the NPA under the leadership of Abdel-Sadek El-Shorbagy. He highlighted the progress in Egypt’s electricity sector over the past decade.
According to State Information Service Egypt, the national electricity grid capacity has increased from 29,000 MW to 61,000 MW since 2014. Moreover, Esmat highlighted the reinforcement and development of the national electricity transmission network, starting with transformer stations at ultra-high and high voltages. This includes establishing 23 transformer stations at a voltage of 500 kV, representing a 390 percent increase compared to approximately five transformer stations in 2014. Additionally, 5,610 km of overhead power lines at 500 kV have been added, marking a 182 percent increase compared to the approximately 1,989 km of overhead power lines in 2014.
The electricity minister also noted that work is underway to construct and upgrade four regional control centres for the national grid. In addition, he said the Dabaa nuclear power project is progressing as planned, with expectations that it will add 4.8 gigawatts of capacity and further stabilize the national grid. Esmat noted that although nuclear energy requires considerable time and investment, it is a vital part of Egypt’s strategy to diversify its energy formula.
Egypt’s energy diversification goals include reducing its dependence on fossil fuels and expanding renewable energy sources. By 2029, the country aims to add 12.4 gigawatts of wind energy, 8.1 gigawatts of solar energy, and 2.4 gigawatts of nuclear energy. Earlier in December, Egypt officially launched the Abydos 1 Solar Power Plant in Kom Ombo, with a capacity of 500 megawatts. Additional wind energy capacity is anticipated in the next two months. To facilitate this transition, 42,600 square kilometres have been allocated for renewable energy generation projects.
Esmat also outlined the government’s goals to achieve 42 percent of renewable energy in the energy mix by 2030 and 60 percent by 2040, supported by advancements in technology and storage solutions and the growing role of green hydrogen. He noted that using a smart electricity grid is central to transitioning to cleaner and renewable energy sources. Shifting to a smart grid will improve efficiency, reduce energy losses, and allow the integration of large renewable energy capacities, he added.
Furthermore, he highlighted the Egyptian government’s efforts to attract private sector investment in renewable energy, including introducing the new electricity law, signing long-term power purchase agreements, and localizing renewable energy technologies to stimulate local industry and create new jobs. The electricity minister highlighted Egypt’s regional partnerships in the energy field, especially electricity interconnections with Jordan, Sudan, and Greece. He added that 71 percent of the $1.8 billion Egypt-Saudi Arabia power linkage projects had been completed. The project is expected to be fully operational by December 2025. Esmat explained that this project will facilitate the exchange of up to 3,000 MW of electricity, strengthening regional energy integration.
In addition, the electricity minister revealed that 1.9 million theft cases were reported between July and December 2024, amounting to EGP 6.7 billion in losses. The government has implemented measures to combat theft, such as installing digital metres and increasing monitoring staff. He pointed out that the House of Representatives also considered harsher penalties for repeat offenders. Esmat underscored President El-Sisi’s ‘A New Beginning for Building the Human’ initiative, which, by the end of 2024, had provided 92,000 services to citizens. He highlighted the government’s efforts to address challenges related to prepaid electricity cards and ensure a fair distribution of electricity subsidies, which have reached EGP 175 billion.