Electricity in Egypt in 2023

The current state of electricity consumption in Egypt shows a heavy reliance on fossil fuels. Based on our own forecast model utilizing actual data for the first five months of 2023 and projected data for the remaining three months, more than 88% of Egypt's electricity is generated from fossil sources, with natural gas alone contributing more than 81%. In contrast, low-carbon or clean energy sources make up just over 11% of the total electricity generation. Hydropower is the largest contributor among low-carbon sources at around 6%, followed by wind at nearly 3% and solar at slightly above 2%. This stark difference underscores the urgent need for Egypt to diversify its energy mix by increasing the share of low-carbon electricity.

Suggestions

To boost low-carbon electricity generation, Egypt can learn from countries that have successfully implemented a mix of clean energy solutions. For instance, Denmark predominantly relies on wind power, generating an impressive 61% of its electricity from wind. This demonstrates that with the right policies and investments, wind energy can play a significant role in the energy mix. Similar climate conditions and terrain make the wind a feasible option for Egypt as well. In terms of nuclear energy, France leads with 67% of its electricity generated from nuclear plants, showcasing the potential of nuclear as a reliable and substantial source of clean energy. Following France's example, along with other countries like Slovakia (60%) and Ukraine (55%), Egypt could consider expanding its nuclear infrastructure to reduce its heavy dependence on fossil fuels and address climate change and air pollution concerns.

History

The history of low-carbon electricity generation in Egypt has seen various fluctuations, especially in hydropower. In the late 20th century, particularly between 1985 and 2000, hydroelectric power experienced both declines and increases, with notable increases in 1989, 1994, and 1999, but also significant drops such as in 1985 and 2003. Moving to the 21st century, there was another notable drop in hydro power in 2009 and 2010. However, positive developments emerged in the wind energy sector with incremental increases starting in 2015 and a significant boost in 2019. Solar energy saw rapid growth more recently, particularly in 2019 and 2020. These trends point to a gradual but important shift towards diversifying Egypt’s electricity generation mix, although there have been challenges, particularly with maintaining consistent hydropower output. Increasing efforts in wind and solar, paired with potential nuclear investments, could solidify a sustainable energy future for Egypt.

Electricity Imports and Exports

Balance of Trade

Data Sources