Cairo- In light of the challenges facing Egypt in the energy sector and the increasing demand for electricity, electrical interconnection projects with neighboring and regional countries come as a glimmer of hope for resolving the power outage crisis that has worsened over the past two years.
Based on its strategic location between three continents, Egypt seeks to strengthen electrical connectivity to become a regional center for energy exchange, with a focus on increasing investments in the sector and achieving a balance between local and international requirements, in light of the global transformations in the field of energy.
Egypt has a wide network of electrical interconnection projects with neighboring countries, as it currently connects its network to the networks of Jordan, the Gaza Strip, Sudan, and Libya, but with limited capabilities, and it seeks to increase them.
It is currently working on implementing a new project with Saudi Arabia, as well as other projects under negotiation with the European side.
Electrical connection and addressing the causes of energy shortages
Electrical interconnection between countries is the connection of electricity networks between them to exchange energy and exploit the surplus within the framework of taking advantage of the difference in peak times, which increases stability in supplies and allows countries to make the most of their resources.
Despite Egypt’s success in increasing its nominal production capacity of electricity to about 58,000 megawatts per day through the establishment of giant power generation stations worth billions of dollars, the actual production is estimated at about 35,000 megawatts due to the lack of sufficient fuel to operate the stations.
Egypt witnessed a major power outage crisis due to increased consumption and a significant decrease in gas production in the giant “Zohr” field in the Mediterranean. Daily energy consumption exceeded 37 thousand megawatts, an increase of 12% over last year, according to statements by Egyptian Prime Minister Mostafa Madbouly.
Observers and experts believe that electrical connection projects alone are not sufficient to completely solve the power outage crisis.
Egypt needs to take a set of comprehensive measures to address the causes of the energy crisis through:
- Increase investments in the energy sector
- Encouraging the use of renewable energy
- Rationalization of consumption.
Electrical connection projects
Egypt expects to begin the first phase of operating the electrical interconnection with Saudi Arabia, at a cost of $1.8 billion, in the middle of next year, while work continues to complete the electrical interconnection project with Greece and Cyprus, which was adopted by the European Union.
Last week, the Egyptian Prime Minister revealed another project, where moves are now underway to connect with Italy, as part of a package of regional connectivity projects, especially with Europe during the coming period.
Interconnection projects between Egypt and some neighboring countries allow the exchange of electrical capacity reaching several thousand megawatts.
Energy gap and resource security
Egyptian gas production has begun to decline, with production in the giant “Zohr” field declining by about a third since 2019 for technical reasons, but the Egyptian government expected the Zohr field to return to its production capacity in mid-2025 in light of the commitment to pay the dues of the Italian company “Eni”.
It is noteworthy that one of the reasons for the decline in oil and gas production is the increase in arrears owed to foreign oil companies, which peaked at about $6.6 billion two years ago, which led to a slowdown in exploration and development programs, according to the Egyptian Minister of Petroleum.
Egypt suffers from a gap in natural gas, as its daily needs reach 6.2 billion cubic feet per day, while its daily production amounts to about 4.6 billion cubic feet, amid persistent efforts to increase production by the end of this year to about 5 billion cubic feet per day.
Renewable energies
In addition to securing traditional energy sources, Egypt needs to expand its reliance on new and renewable energy, according to Mohamed Salim Salman, a member of the Board of Directors of the Arab Council for Sustainable Energy, stressing “the importance of achieving the targets for increasing electricity production.”
The Egyptian government’s sustainable energy strategy aims to increase the contribution of the percentage of renewable energy to the electrical energy mix. However, Egypt has reduced its target for the percentage of renewable energy in the energy mix by 2040 to 40% from 58% previously, and the Minister of Petroleum confirmed that natural gas will remain a major fuel for years to come. .
In his interview with Al Jazeera Net, the Renewable Energy Consultant and former Head of the Central Performance Monitoring Sector at Electricity of Egypt, Salim Salman, stated that Egypt’s benefit from electricity exchange depends on the availability of energy to operate power stations, in addition to expanding reliance on renewable energy such as (sun, wind).
Regarding the importance of electrical connectivity and economic feasibility, Salman explained that it enhances energy security by diversifying sources, reducing dependence on fossil fuels, supporting the transition to a more sustainable economy, and reducing the fuel import bill.
He ruled out that the electrical connection would end the power outage crisis without working to increase fuel production in the traditional and renewable form, noting that the volume of production amounts to about 35 gigawatts, which is the average consumption, but there are times in the day and in the seasons of the year when Egypt has a surplus due to the lack of pressure on the national electricity grid. .
Egypt’s challenges in leading the region’s energy
Solar energy and water desalination expert, Abdel Hakim Hassabo, says, “Egypt can become a regional center for energy exchange by taking advantage of two things: the first is taking advantage of the geographical location to enhance its position as an energy hub in the region, and the second is exploiting the available potential of solar and wind energy.”
He added to Al Jazeera Net that Egypt can achieve a qualitative leap in the field of energy and become a leader in the region, but this requires concerted governmental and private efforts, consolidating modern technologies, and providing the necessary support to develop this promising sector.
Hassabo pointed out that the transition to the stage of increasing the proportion of renewable energy requires years of massive investments, high technologies and wise management in order to enhance opportunities for exporting electricity to neighboring countries, which creates a promising market for long-term contracts to keep pace with the increasing demand for electricity.
The expert believed that the real test is the Egyptian government’s ability to strike a balance between exporting electricity and meeting the needs of the local market, securing energy sources, formulating fair and transparent contracts, and achieving appropriate returns for the state.
