188 M. HOCHBERG
the norm 7 (Generation asset utilization is also impacted by issues around
fuel quality and hydro’s partial dependence on discharged irrigation water
rules, defined by the Ministry of Water Resources and Irrigation). 8 Today,
Egypt has achieved sufficient generation capacity to maintain reliability,
partially through gas-fired combined cycle megaproject that became operational in 2018. Yet, the nation seeks to continue expanding this capacity
to both decarbonize its generation fleet, meet anticipated demand and to
enhance its status as a regional energy leader.
In terms of hydrocarbon resources, Egypt is Africa’s third largest dry
natural gas producer, largest non-OPEC (Organization of Petroleum
Exporting Countries) oil producer, 9 and fifth largest oil producer. 10 Yet
it is also the largest oil and gas consumer on the continent. Despite its
reserves, in 2015 Egypt became a net importer of natural gas, due to
rising domestic demand coupled with declining gas production (Egypt has
since become a net exporter again, discussed below). 11 In addition, the
nation’s historical dependence on fossil fuels for electricity generation 12
has led to supply shocks in the past, causing hardships such as insufficient
gas supply, rerouting gas meant for liquefaction and export to domestic
use, and related disputes with international gas companies leading to
multi-billion dollar international arbitration. This trend has since been
reversed, with Egypt becoming a net exporter again in 2018, as a result of
production from the Zohr offshore gas field, discovered in 2015 and the
Mediterranean’s largest natural gas field to date. (Still, Egypt will require
developing further new resources.) As such, Egypt’s leveraging of native
renewable resources is important not only for economic and societal
development, but also enhances Egypt’s energy security and geopolitical
positioning. Egypt nuclear generation development may also achieve these
aims, but at a much greater investment cost, thus increasing fiscal risk as
it is a government project.
Geopolitics
Globally, geopolitical rivalries have become increasingly present on the
world stage in recent years, returning to a central role in political decision
making and international relations. Leveraging alternative energy sources
and fortifying relationships through international energy deals and collaboration serves Egypt as it seeks to diversify and deepen alliances. The
Gulf nations, particularly Saudi Arabia and the United Arab Emirates,
provide billions of dollars in aid to Egypt in the form of loans, grants
the norm 7 (Generation asset utilization is also impacted by issues around
fuel quality and hydro’s partial dependence on discharged irrigation water
rules, defined by the Ministry of Water Resources and Irrigation). 8 Today,
Egypt has achieved sufficient generation capacity to maintain reliability,
partially through gas-fired combined cycle megaproject that became operational in 2018. Yet, the nation seeks to continue expanding this capacity
to both decarbonize its generation fleet, meet anticipated demand and to
enhance its status as a regional energy leader.
In terms of hydrocarbon resources, Egypt is Africa’s third largest dry
natural gas producer, largest non-OPEC (Organization of Petroleum
Exporting Countries) oil producer, 9 and fifth largest oil producer. 10 Yet
it is also the largest oil and gas consumer on the continent. Despite its
reserves, in 2015 Egypt became a net importer of natural gas, due to
rising domestic demand coupled with declining gas production (Egypt has
since become a net exporter again, discussed below). 11 In addition, the
nation’s historical dependence on fossil fuels for electricity generation 12
has led to supply shocks in the past, causing hardships such as insufficient
gas supply, rerouting gas meant for liquefaction and export to domestic
use, and related disputes with international gas companies leading to
multi-billion dollar international arbitration. This trend has since been
reversed, with Egypt becoming a net exporter again in 2018, as a result of
production from the Zohr offshore gas field, discovered in 2015 and the
Mediterranean’s largest natural gas field to date. (Still, Egypt will require
developing further new resources.) As such, Egypt’s leveraging of native
renewable resources is important not only for economic and societal
development, but also enhances Egypt’s energy security and geopolitical
positioning. Egypt nuclear generation development may also achieve these
aims, but at a much greater investment cost, thus increasing fiscal risk as
it is a government project.
Geopolitics
Globally, geopolitical rivalries have become increasingly present on the
world stage in recent years, returning to a central role in political decision
making and international relations. Leveraging alternative energy sources
and fortifying relationships through international energy deals and collaboration serves Egypt as it seeks to diversify and deepen alliances. The
Gulf nations, particularly Saudi Arabia and the United Arab Emirates,
provide billions of dollars in aid to Egypt in the form of loans, grants