Egypt enhances fuel supplies in preparation for increased electricity demand in the summer economy

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The Egyptian government is rushing to enhance fuel supplies to power stations and raise the readiness of the national grid in preparation for a summer that is expected to witness an increase in demand for electricity by 8% compared to last year’s peak, as part of a plan aimed at avoiding a repeat of the power outage crisis that the country witnessed in 2023.

This came during a meeting held by the Minister of Electricity and Renewable Energy, Mahmoud Esmat, and the Minister of Petroleum and Mineral Resources, Karim Badawi, to review the joint action plan between the two ministries, according to a joint statement issued today, Tuesday, coinciding with expectations of loads rising to levels exceeding the record peak recorded last year, amounting to 40,000 megawatts.

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The two ministers said that the Ministries of Electricity and Petroleum are working as a “one working team” to secure the fuel needs of power generation stations and ensure the stability of the unified network during peak periods, through continuous coordination between the two sides and developing scenarios to deal with any variables that may affect energy supplies.

The statement explained that the meeting reviewed the joint action plan to provide fuel equivalent to generation stations, and reviewed the readiness of the electrical network to face the expected increase in loads, in light of the continued urban, industrial and agricultural expansion, and the accompanying growth in demand for electricity.

Minister of Electricity, Mahmoud Esmat, said that during the recent period, the sector implemented “new operating patterns,” which contributed to reducing fuel consumption per kilowatt-hour to less than 170 grams.

He added that the Ministry is working according to a timetable to connect 2,200 megawatts of renewable energy projects, in addition to 1,300 megawatt-hours of energy storage batteries to the electrical grid during the current year, as part of a strategy to diversify sources of electricity production and increase reliance on solar and wind energy.

He pointed out that the use of energy storage technologies will contribute to enhancing grid stability during peak hours, reducing dependence on fossil fuels, and increasing the operating efficiency of the electricity system.

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For his part, Minister of Petroleum Karim Badawi said that preparations for the summer began last year through the implementation of a proactive plan that included preparing various scenarios to deal with the expected increase in consumption and enhance the flexibility of the supply system.

He added that the liquefied natural gas import system works “with high efficiency” through gasification ships that receive imported shipments and convert them into natural gas that is pumped directly into the national grid.

He explained that the ministry also benefits from the operational capabilities of the Damietta LNG plant to store strategic shipments and re-pump them when needed, in parallel with local production from gas fields, providing an integrated system to secure the needs of the local market.

These preparations come after the power outage crisis that Egypt witnessed during the summer of 2023, when a shortage of fuel and natural gas supplies led to the implementation of a load shedding program that lasted several months.

In the summer of 2024, the government resorted to increasing imports of fuel and liquefied natural gas, and obtaining external financing to secure the needs of power plants and maintain grid stability during the peak season.

This year, the government seeks to avoid a recurrence of this crisis by strengthening coordination between the electricity and petroleum sectors, increasing the contribution of renewable energy, and improving the efficiency of operating generation plants.

On the other hand, the challenges of fuel provision emerge in light of the continuing gap between local production and consumption, as data from the Joint Data Initiative (GODI) showed that Egypt’s production of natural gas amounted to 3,214 million cubic meters during last April, while imports recorded 2,190 million cubic meters, which reflects the country’s continued reliance on importing quantities of gas to meet the needs of the local market, especially during the summer months when electricity consumption is high.



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