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Electricity Ministry plans adding 20,000 MW in 2 years - Daily News Egypt

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Electricity Ministry plans adding 20,000 MW in 2 years

19.2m tonnes of mazut equivalent saved per year in fuel consumption at production plants

Daily News obtained a copy of the national plan to improve energy efficiency in Egypt for 2018-2020. This plan is the second in place to improve energy efficiency in Egypt.

The government took into account the challenges that faced the implementation of the previous plan to ensure the desired results.

According to the plan, the total capacity of conventional power plants reached 37,900MW, in addition to 890MW of renewable energy.

The new plan is expected to add 20,100MW by 2020 for the country’s total energy capacity to reach 58,100MW, of which 34,400 MW will come from high-efficiency combined cycle stations where fuel consumption is 170grams/kWh of fuel equivalent.

On the other hand, for renewable energy, 6,960MW of wind power are expected to be added by 2022, as well as 2,750MW from solar power plants.

It is expected that starting from fiscal year (FY) 2018/2019, network loads will be covered mainly by the combined cycle stations, hydropower, and renewable energy, which means that the average fuel consumption would decrease to 170g/kWh of fuel equivalent for thermal units instead of the current rate which is 214.5 g/kWh, recording 20% savings.

On the supply side, the plan showed the expected savings in electricity as a result of the tariff restructuring programme, stressing the importance of a realistic price signal for the cost of producing, transporting, and distributing electricity to consumers.

The plan also monitored the expansion of production projects and the impact on the radical development of the means of production. This will be reflected in energy efficiency, as the plan was able to achieve an annual saving in fuel consumption in the production of electricity estimated at 19.2m tonnes of fuel equivalent.

Additionally, the plan referred to procedures to reduce the loss of distribution networks, develop the control centres of these networks, and use smart metres, which will be reflected in the efficiency of these networks.

The plan specified the procedures that will be carried out by distribution companies to improve the energy efficiency of consumers to achieve the provisions of the Electricity Law in this regard.

The measures focused on a programme to spread the use of LED lamps in the residential sector through an advanced mechanism targeting the first three segments of domestic consumers, which constitute 50% of the total consumption of electricity among all home consumers.

The plan included the issuance of an annual report on energy efficiency, including the electricity consumption budget in Egypt and the assessment of energy sectors based on various economic sectors according to available data from energy records and measurements made by appropriate measurement indicators.

The report also includes funding projects to improve energy efficiency and ensure the economic feasibility of these funds, in addition to training programmes, capacity building, and evaluating the results of such programmes.

The plan includes holding an annual conference on energy efficiency to present successful projects and programmes.

The plan aims to improve the efficiency of energy use without affecting the growth or productivity of the industrial, commercial, service, and agricultural sectors or the impact on the welfare level of consumers, whether in domestic or public use.

It aims to achieve the greatest possible savings and efficiency of energy use through applications that are arranged on the basis of technical and economic feasibility calculated based on the life cycle of the application and achieving sustainable energy supply for all uses and at an appropriate cost to consumers.

With regard to the proposed framework of the 2018-2020 national plan for energy efficiency, the plan will include the completion of the establishment of energy efficiency units in different areas to complete the institutional structure of the energy efficiency system. These moves aim

to achieve the objectives of the efficiency with regards to buildings and public lighting, and ensure that a good system of governance is in place as a necessary step to achieve supervision, coordination, follow-up, and exchange of data between the parties involved as well as accountability for performance.

The energy efficiency plan should be consistent with the integrated and sustainable energy strategy of Egypt through 2035, which was approved by the Supreme Council of Energy, making it binding for all sectors of the state, particularly in relation to the vision and goals.

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