186 M. HOCHBERG
more sustainable generation fleet and modern electric grid, policymakers
are driven to action. Power sector decarbonization efforts via renewable energy support policies in developed economies began in the 1990s
with the aim of creating a more sustainable sector. Yet the drive toward
renewables in developing economies is often motivated by security of
supply. With rising electricity demand creating the need for additional
generation capacity in recent years, 1 combined with plentiful yet underutilized renewable energy resources, the Arab Republic of Egypt fits this
paradigm.
In addition to rising demand, Egypt has experienced electricity supply
issues in the recent past, with production shortfalls habitually decreasing
the availability of gas for power generation. Egypt also suffers from
high transmission and distribution losses and has historically provided
large government subsidies for fuel and electricity, contributing to rising
electricity demand and fiscal account deficits. While Egypt has undertaken substantial efforts to rectify these issues, domestic political upheaval
beginning with the fall of longtime Egyptian President Hosni Mubarak in
2011 helped to decelerate Egypt’s energy transition, until the arrival of
the current government regime.
The relative political stability during the five-plus years under the
regime of President Abdel Fattah el-Sisi has facilitated noteworthy strides
in the development of Egypt’s renewable energy sector. These developments help to secure the electricity supply that will contribute to
economic growth and development and reduce the nation’s power sector
carbon footprint. To this end, Egypt’s updated power sector policies
and regulations have already begun to bear fruit, with notable renewable capacity becoming operational. In tandem, the nation is pursuing
plans in nuclear energy to provide firm, baseload power to help meet
electricity demand, potentially helping Egypt to become an electricity
exporter in the future. Egypt’s new energy strategy reimagines the sector,
removing all energy subsidies by 2022, and introducing a competitive
market framework with increased private sector participation.
Drivers of Renewable and Nuclear
Power Generation Development
Economic, geopolitical, and environmental factors have driven Egypt to
pursue renewable and nuclear energy development. While ensuring security of supply with the most economically efficient set of resources is the
more sustainable generation fleet and modern electric grid, policymakers
are driven to action. Power sector decarbonization efforts via renewable energy support policies in developed economies began in the 1990s
with the aim of creating a more sustainable sector. Yet the drive toward
renewables in developing economies is often motivated by security of
supply. With rising electricity demand creating the need for additional
generation capacity in recent years, 1 combined with plentiful yet underutilized renewable energy resources, the Arab Republic of Egypt fits this
paradigm.
In addition to rising demand, Egypt has experienced electricity supply
issues in the recent past, with production shortfalls habitually decreasing
the availability of gas for power generation. Egypt also suffers from
high transmission and distribution losses and has historically provided
large government subsidies for fuel and electricity, contributing to rising
electricity demand and fiscal account deficits. While Egypt has undertaken substantial efforts to rectify these issues, domestic political upheaval
beginning with the fall of longtime Egyptian President Hosni Mubarak in
2011 helped to decelerate Egypt’s energy transition, until the arrival of
the current government regime.
The relative political stability during the five-plus years under the
regime of President Abdel Fattah el-Sisi has facilitated noteworthy strides
in the development of Egypt’s renewable energy sector. These developments help to secure the electricity supply that will contribute to
economic growth and development and reduce the nation’s power sector
carbon footprint. To this end, Egypt’s updated power sector policies
and regulations have already begun to bear fruit, with notable renewable capacity becoming operational. In tandem, the nation is pursuing
plans in nuclear energy to provide firm, baseload power to help meet
electricity demand, potentially helping Egypt to become an electricity
exporter in the future. Egypt’s new energy strategy reimagines the sector,
removing all energy subsidies by 2022, and introducing a competitive
market framework with increased private sector participation.
Drivers of Renewable and Nuclear
Power Generation Development
Economic, geopolitical, and environmental factors have driven Egypt to
pursue renewable and nuclear energy development. While ensuring security of supply with the most economically efficient set of resources is the