Electricity Ministry Cuts Fuel Costs by EGP 70 Billion in Two Years

The Ministry of Electricity and Renewable Energy has reduced power generation fuel costs by the equivalent of EGP 70 billion over the past two years, while electricity grid losses have fallen to 17.6%, according to Minister Mahmoud Esmat. He said the ministry is also preparing scenarios to avoid any return to load shedding in the event of regional disruptions, including coordination with the Ministry of Petroleum to prepare generation plants for different available fuel mixes.

Esmat said changes to power plant operating patterns have helped reduce fuel consumption to less than 170 grams per kilowatt, alongside upgrades including combined-cycle conversions that increase output without requiring additional fuel. More than 35,000 MW of generation capacity has been added over the past decade, while total investment across the electricity sector has reached nearly EGP 5 trillion, according to the minister.

The ministry is also continuing upgrades to transmission lines, transformer substations and control centres. Eight of nine automated control centres planned under the first phase have been completed, while 26 customer service centres have been upgraded and 45 more are planned for the next fiscal year. A programme to install one million smart meters is also under way, with 270,000 targeted by the end of 2026.

Esmat also highlighted the 4,800 MW El Dabaa Nuclear Power Plant, which he said is expected to generate around 38,000 GWh of electricity annually and save nearly eight billion cubic metres of natural gas. Egypt’s electricity interconnection with Saudi Arabia, designed to exchange up to 3,000 MW, has meanwhile entered trial operation, while studies continue for proposed links with Greece and Italy.