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| | === Primary Energy Supply<br/> === | | === Primary Energy Supply<br/> === |
| − | <span lang="en">Egypt is a resource rich country. According to the US Energy Information Administration (<span data-scaytid="1" data-scayt_word="eia">EIA</span>)<ref>http://www.eia.gov/countries/country-data.cfm?fips=EG</ref>, it is the largest non-OPEC oil producer in Africa and the second largest dry natural gas producer on the continent. However, primary energy production in Egypt has been steadily declining since 2009 and in 2012 reached 82,046 ktoe<ref>http://www.iea.org/statistics/statisticssearch/report/?year=2011&country=EGYPT&product=Balances</ref>. This is due to shortages in natural gas supply and oil production being able to keep up with the energy demand. The shortages have led to frequent electricity blackouts in the country as well as decreasing exports. In attempt to increase power generation, the Egyptian government has approved the industrial use of coal in April 2014.</span><br/> | + | <span lang="en">Egypt is a resource rich country. According to the US Energy Information Administration (<span data-scayt_word="eia" data-scaytid="1">EIA</span>)<ref>http://www.eia.gov/countries/country-data.cfm?fips=EG</ref>, it is the largest non-OPEC oil producer in Africa and the second largest dry natural gas producer on the continent. However, primary energy production in Egypt has been steadily declining since 2009 and in 2012 reached 82,046 ktoe<ref>http://www.iea.org/statistics/statisticssearch/report/?year=2011&country=EGYPT&product=Balances</ref>. This is due to shortages in natural gas supply and oil production being able to keep up with the energy demand. The shortages have led to frequent electricity blackouts in the country as well as decreasing exports. In attempt to increase power generation, the Egyptian government has approved the industrial use of coal in April 2014.</span><br/> |
| | === Consumption<br/> === | | === Consumption<br/> === |
| | | | |
| | {| style="width: 764px;" border="1" cellspacing="3" cellpadding="1" | | {| style="width: 764px;" border="1" cellspacing="3" cellpadding="1" |
| − | |+ Final energy consumption in Egypt in 2012 added up to 55,879 <span data-scaytid="194" data-scayt_word="ktoe">ktoe</span>. The share of the individual sectors is shown in table 1.<br/><br/><u>Table 1: Final energy consumption in Egypt in 2012 (ktoe)</u> <u><ref>http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=EGYPT&product=Balances</ref></u><br/> | + | |+ Final energy consumption in Egypt in 2012 added up to 55,879 <span data-scayt_word="ktoe" data-scaytid="194">ktoe</span>. The share of the individual sectors is shown in table 1.<br/><br/><u>Table 1: Final energy consumption in Egypt in 2012 (ktoe)</u> <u><ref>http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=EGYPT&product=Balances</ref></u><br/> |
| | |- | | |- |
| | | style="width: 752px;" colspan="4" | Total Final Energy Consumption | | | style="width: 752px;" colspan="4" | Total Final Energy Consumption |
| | |- | | |- |
| | | style="width: 649px;" colspan="2" | <br/> | | | style="width: 649px;" colspan="2" | <br/> |
| − | | style="width: 49px;" | <span data-scaytid="429" data-scayt_word="ktoe">ktoe</span> | + | | style="width: 49px;" | <span data-scayt_word="ktoe" data-scaytid="429">ktoe</span> |
| | | style="width: 40px;" | % | | | style="width: 40px;" | % |
| | |- | | |- |
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| | In 2012/2013, the carrier grid consisted of 43,634 km total transmission lines and cables. The grid is subdivided into six geographical zones, namely Cairo, Canal, Delta, Alexandria and West Delta, Middle Egypt and Upper Egypt. The country’s entire territory is covered. The network is interconnected with the grids of Libya, Jordan, Syria and Lebanon. There are ongoing studies<ref>http://www.egelec.com/mysite1/pdf/report%20E.pdf</ref> for interconnections with Saudi Arabia, Sudan, the Democratic Republic of Conge, the Eastern Nile Basin (Sudan and Ethiopia) and Greece.<br/> | | In 2012/2013, the carrier grid consisted of 43,634 km total transmission lines and cables. The grid is subdivided into six geographical zones, namely Cairo, Canal, Delta, Alexandria and West Delta, Middle Egypt and Upper Egypt. The country’s entire territory is covered. The network is interconnected with the grids of Libya, Jordan, Syria and Lebanon. There are ongoing studies<ref>http://www.egelec.com/mysite1/pdf/report%20E.pdf</ref> for interconnections with Saudi Arabia, Sudan, the Democratic Republic of Conge, the Eastern Nile Basin (Sudan and Ethiopia) and Greece.<br/> |
| | === Electricity prices<br/> === | | === Electricity prices<br/> === |
| − | The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to type of consumption (e.g. residential, commercial, industrial) and amount consumed. Since the tariff is higher for higher consumption, there is an incentive to consume less. The lowest category of the residential tariff, up to 50 KWh/month, has remained unchanged since 1993 at 5 piasters (approximately 0.60 €-ct) per KWh. Since 2007, the government has been trying cut costs for subsidies. In July 2014 , electricity prices increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost <ref>http://english.alarabiya.net/en/business/2014/07/04/Minister-Egypt-raises-electricity-prices-.html</ref>.<br/><br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/><span style="color: rgb(255, 0, 0);">Updated until here</span><br/> | + | The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to type of consumption (e.g. residential, commercial, industrial) and amount consumed. Since the tariff is higher for higher consumption, there is an incentive to consume less. The lowest category of the residential tariff, up to 50 KWh/month, has remained unchanged since 1993 at 5 piasters (approximately 0.60 €-ct) per KWh. Since 2007, the government has been trying cut costs for subsidies. In July 2014 , electricity prices increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost <ref>http://english.alarabiya.net/en/business/2014/07/04/Minister-Egypt-raises-electricity-prices-.html</ref>.<br/><br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | = Energy Policy<br/> = | | = Energy Policy<br/> = |
| | | | |
| | == General Information<br/> == | | == General Information<br/> == |
| − | Overview and recent debates (e.g. coal)<br/>Within the context of the new energy strategy and the ambitious renewable energy targets, recently, there has been some effort to create a more competitive electricity market in order to attract investors from the private sector. The draft of the new Electricity Law, which is currently in the process of ratification by the People’s Assembly, is supposed to establish a <span data-scaytid="226" data-scayt_word="liberalised">liberalised</span> electricity market, regulated by the Egyptian Electric Utility and Consumer Protection Regulatory Agency <span data-scaytid="224" data-scayt_word="eeucpra">EEUCPRA</span>. Article 20 – 22 of the draft law addresses the replacement of the current Single Buyer Model and allows for third party access to the electricity grid. The access to the electricity grids will be based on published tariffs and <span data-scaytid="228" data-scayt_word="longterm">longterm</span> electricity purchase agreements. Moreover, the government states that it plans to remove all energy subsidies by 2017.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/>
| + | The combination of increasing demand, decreasing production and high subsidies for fuel have put a strain on the Egyptian energy sector and led to an enourmous public deficit. As of June 2014, Egypt owed 7.5 billion USD and counting to foreign oil and gas companies alone <ref>http://www.eia.gov/countries/cab.cfm?fips=eg</ref>. In order help meeting the energy demand and to prevent an Egyptian energy crisis, Gulf countries have been providing financial aid to Egypt. However, this kind of aid is expected to decrease as the Gulf countries are impacted by the falling oil prices of 2015.<br/> |
| | + | One topic dominating energy policy debates in Egypt is the use of coal. In April 2014, the Cabinet approved the industrial use of coal. This is especially relevant for cement factories, as these are particularly energy intensive and have occasionally been cut off from the energy supply as the government's priority was to preserve gas for power generation <ref>http://www.reuters.com/article/2014/11/05/egypt-cement-coal-idUSL6N0SU2YB20141105</ref>.<br/> |
| | + | [[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | == Renewable Energy Policy<br/> == | | == Renewable Energy Policy<br/> == |
| − | Egypt’s renewable energy strategy was formulated in the early <span data-scaytid="162" data-scayt_word="1980s">1980s</span> as an integral part of the national energy planning. This strategy has been revised and adapted according to the changing financial, market and technological framework conditions. The target of a 20 % renewable electricity by 2020 (around 12 000 MW) is highly ambitious compared to the previous target set in 2000 of 14 % RE-E by 2021/22.<ref name="El-Salmawy 2004. Egyptian Power Sector Reform and New Electricity Law. EEUCPRA.">El-Salmawy 2004. Egyptian Power Sector Reform and New Electricity Law. EEUCPRA.</ref><br/>The most important instrument to implement the energy strategy is the New Electricity Law, which is currently in the process of ratification by the People’s Assembly. The new law will<ref name="JCEE 2009; Ministry of Electricity and Energy. Strategic Plan in the Electricity Sector in Egypt. Prequalification Developers’ Meeting of BOO Wind Power Project 250 MW. Cairo 2009.">JCEE 2009; Ministry of Electricity and Energy. Strategic Plan in the Electricity Sector in Egypt. Prequalification Developers’ Meeting of BOO Wind Power Project 250 MW. Cairo 2009.</ref>:<br/>
| + | In February 2008, the Egyptian government adopted a New National Renewable Energy Strategy. It sets out the ambitious goal to achieve a generation of 20% of the country’s electricity from renewable resources by 2020. 12 percentage points (which means 7,200 MW) are supposed to be covered by wind energy. One third of the planned RE capacity will be state-owned projects financed through public investments by the New and Renewable Energy Agency (NREA) in cooperation with international financing institutions. Two thirds will be private sector projects, which will be supported by policies structured in three phases:<br/> |
| − | *Establish a liberalized electricity market with various market participants, regulated by <span data-scaytid="191" data-scayt_word="eeucpra">EEUCPRA</span>
| + | *Phase 1 will adopt competitive bids through issuing tenders requesting the private sector to supply electricity from renewable energy sources.<br/> |
| − | *Improve the conditions for renewable energy, <span data-scaytid="193" data-scayt_word="cogeneration">cogeneration</span> and demand side management in the electricity sector
| + | *In Phase 2, a feed-in-tariff will be implemented, in particular for medium and small size projects. <br/> |
| − | *Provide some rules for electricity consumption and includes measures to encourage renewable energy electricity production.
| + | *Phase 3 allows investors to build and operate renewable energy power plants to satisfy their electricity needs or to sell electricity to other consumers though the national grid.<br/> |
| − | With regard to renewable energy electricity generation, the law foresees that the private sector builds, owns and operates the projects and sells the '''electricity to the transmission company (<span data-scaytid="197" data-scayt_word="eetc">EETC</span>)''' under long term Power Purchase Agreements (<span data-scaytid="200" data-scayt_word="ppa">PPA</span>). Non-renewable energy based '''[[Independent Power Producers (IPPs)|Independent Power Producers (IPPs)]]''' conclude bilateral purchase agreements with eligible consumers.<br/>To implement the strategy, a two phase policy is planned:<br/>
| + | Also, an RE support fund is supposed to be established to cover the feed-in tariff payments.<br/> |
| − | *Phase 1 will adopt competitive bids through issuing tenders requesting the private sector to supply electricity from renewable energy sources. A <span data-scaytid="164" data-scayt_word="ppa">PPA</span> agreement, mostly for 20 years, will be guaranteed. This competitive bidding is based on existing law, which also supports the existing <span data-scaytid="165" data-scayt_word="ipp">IPP</span>. | + | In September 2014, the Cabinet approved the issuance of feed-in tariffs for solar PV and wind projects. The tariffs are paid according to plant capacity. The details are outlines in a [http://egyptera.org/Downloads/taka gdida/Download Renewable Energy Feed-in Tariff Regulations en.pdf guiding document published by the Egyptian Electric Utility for Consumer Protection and Regulatory Agency (EgyptERA)]. <br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| − | *In Phase 2, a feed-in-tariff will be implemented, in particular for medium and small size projects. This will be based on the new electricity law.<br/> | + | |
| − | Further support instruments are the right of access and priority dispatching for electricity generation from renewable sources, which is already implemented, whenever they are available and the establishment of a Renewable Energy Fund. This fund will support the renewable energy activities of the <span data-scaytid="168" data-scayt_word="mee">MEE</span> and the <span data-scaytid="169" data-scayt_word="mop">MoP</span> covering the deficit between the renewable energy costs and market prices as well as providing financial support to pilot projects. It will be mainly financed through a levy on subsidized fossil fuel sales for electricity generation.<ref name="El-Salmawy 2009; JCEE 2009">El-Salmawy 2009; JCEE 2009</ref><br/><br/>'''Competitive bids'''<br/>It is planned to tender a total of 2 500 MW through five bids, divided in blocks of 250 MW. The framework criteria for the tenders include:<br/>
| + | |
| − | *Controlled increase of the renewable based electricity capacity according to the capacity of transmission system and the capacity of the market.
| + | |
| − | *Attracting highly qualified international developers with strong financial status and high capacity for technology transfer.<br/>
| + | |
| − | *Promotion of local manufacturing. In the evaluation of the proposals, advantages will be given to those offers having higher share of locally manufactured components.<br/>
| + | |
| − | *Achieving the lowest possible prices.<br/>
| + | |
| − | *Reducing the financial risk for investors guaranteeing long term <span data-scaytid="170" data-scayt_word="ppas">PPAs</span> (mostly of 20 years). The first process has started with a prequalification tender for 250 MW in <span data-scaytid="171" data-scayt_word="gabal">Gabal</span> el <span data-scaytid="172" data-scayt_word="zeyt">Zeyt</span>. The last tender will be opened by 2017.<br/>
| + | |
| − | <br/>'''Feed-in-tariff'''<br/>The system is supposed to offer incentives to install 2 500 MW of additional capacity. It is addressed to small and medium size projects up to 50 MW. The tariff will be probably set for 15 years, taking into consideration wind speed and installed capacity. The system is still under elaboration.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/>
| + | |
| | == Energy Efficiency Policy<br/> == | | == Energy Efficiency Policy<br/> == |
| − | Information about EE etc.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/>
| + | Egypt has adopted aNational Energy Efficiency Action Plan (NEEAP) (2012-2015) with cumulative energy efficiency targets of 5%. At the Council of Ministers secretariat, there is an EE unit which is the mandated entity for developing and implementing this plan. However, there is no designated energy efficiency agency and no general legal framework for EE measures <ref>http://www.rcreee.org/sites/default/files/egypt_ee_fact_sheet_print.pdf</ref>. <br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | = Key Actors in the Energy Sector<br/> = | | = Key Actors in the Energy Sector<br/> = |
| − |
| |
| | | | |
| | == Governmental Bodies and Agencies<br/> == | | == Governmental Bodies and Agencies<br/> == |
| − | The first Ministry for Electricity and Energy was established in 1964. The Ministry supervises the Egyptian Electricity Holding Company as well as the '''New and Renewable Energy Agency (<span data-scaytid="230" data-scayt_word="nrea">NREA</span>)''' and the '''Rural Electrification Authority (REA)'''. Next to supervising all activities related to energy projects, it suggests electricity prices and publishes data and statistics relating to electricity production.<br/>The '''Egyptian Electric Utility and Consumer Protection Regulatory Agency (<span data-scaytid="234" data-scayt_word="eeucpra">EEUCPRA</span>)''' was established by decree in 1997 (Decree no. 326 of 1997: »Establishing the electric utility and consumer protection regulatory agency«).The regulatory authority is located in Cairo and came into formal existence in 1998.The primary task of the regulatory authority is to balance the interests of electricity producers, electricity providers and end users. It is supposed to ensure a reliable <span data-scaytid="235" data-scayt_word="longterm">longterm</span> supply of electricity while promoting and supervising environmental protection and operational reliability in the energy sector. It is also responsible for licensing the construction and operation of electricity generation, transmission and distribution facilities as well as for electricity trading. One of the authority’s declared objectives is to create an enabling environment for market-based competition within the framework of existing laws and to prevent the formation of commercial monopolies in the energy sector. <span data-scaytid="238" data-scayt_word="eeucpra's">EEUCPRA's</span> Board of Directors is nominated by the Ministry of Electricity and Energy. <span style="color: rgb(255, 0, 0);">+ EgyptERA</span><br/>The Ministry of Electricity and Energy established the '''New and Renewable Energy Authority (<span data-scaytid="241" data-scayt_word="nrea">NREA)</span>''' in 1986 for the purpose of bundling activities aiming to promote both renewable sources of energy and energy efficiency. <span data-scaytid="242" data-scayt_word="nrea">NREA</span> is the operator of all wind power installations in Egypt, including the demonstration projects in <span data-scaytid="243" data-scayt_word="matrouh">Matrouh</span> administrative district (hybrid wind/diesel system) and <span data-scaytid="244" data-scayt_word="hurghada">Hurghada</span> (5.5 MW wind farm), as well as the grid connected <span data-scaytid="250" data-scayt_word="zafarana">Zafarana</span> wind farms on the Gulf of Suez (reaching 425 MW by mid 2009 and still expanding). With the new general orientation towards private sector involvement, <span data-scaytid="252" data-scayt_word="nrea">NREA</span> also engages in supporting private investment in wind energy by providing resource assessment, the necessary data for feasibility studies and technical support for potential project developers, and by being the partner in land use agreements. Moreover, the <span data-scaytid="256" data-scayt_word="nrea">NREA</span> has a central laboratory for testing and certifying apparatus and equipment for utilizing renewable energy resources. Finally, the <span data-scaytid="257" data-scayt_word="nrea">NREA</span> offers training and upgrading courses, <span data-scaytid="260" data-scayt_word="organises">organises</span> workshops and conducts studies – both on its own and in cooperation with international partner <span data-scaytid="261" data-scayt_word="organisations">organisations</span>.<br/>The '''Egyptian Environmental Affairs Agency (<span data-scaytid="266" data-scayt_word="eeaa">EEAA)</span>''' was initially established in 1982 and restructured in 1994, according to Law 4/1994. The <span data-scaytid="267" data-scayt_word="eeaa">EEAA</span> serves as the executive arm of the Ministry of State for Environmental Affairs (<span data-scaytid="272" data-scayt_word="msea">MSEA</span>). Its administrative council is composed of the Minister of Environmental Affairs, the Chief Executive Officer of the Agency and representatives from relevant ministries, Non-Governmental <span data-scaytid="273" data-scayt_word="organisations">Organisations</span> (NGOs), the public business sector, universities and research <span data-scaytid="276" data-scayt_word="centres">centres</span>. The Agency’s activities are financed by the Environmental Protection Fund (<span data-scaytid="277" data-scayt_word="epf">EPF</span>), which is funded by donations and grants by national and foreign organizations, as well as fines and compensation awarded by courts of law. Principal functions of the agency include the formulation of environmental policies, the development and monitoring of projects and the implementation of pilot projects. The agency is further the national authority in charge of promoting environmental topics between Egypt and third parties.<br/>The government-owned and operated '''Egyptian Electricity Holding Company (<span data-scaytid="285" data-scayt_word="eehc">EEHC</span>)''' coordinates, supervises and monitors the activities of its 16 (+1 - Includes <span data-scaytid="289" data-scayt_word="nrea">NREA</span> –actually a research institute – also presents itself as the operator of the <span data-scaytid="295" data-scayt_word="zaafarana">Zaafarana</span> wind farm-therefore included as a electricity production company) affiliated companies in the field of production, transmission and distribution of electric energy. The <span data-scaytid="296" data-scayt_word="eech">EECH</span> subsidiary <span data-scaytid="290" data-scayt_word="eetc">EETC</span> is responsible for the countrywide transmission of electricity to regional and local distributors. Next to the <span data-scaytid="291" data-scayt_word="eetc">EETC</span>, there are six generating and nine distribution companies. The <span data-scaytid="292" data-scayt_word="eehc">EEHC</span> is supervised by the Egyptian '''Ministry of Electricity and Energy (<span data-scaytid="293" data-scayt_word="mee">MEE</span>)'''.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/><br/> | + | The first Ministry for Electricity and Energy was established in 1964. The Ministry supervises the Egyptian Electricity Holding Company as well as the '''New and Renewable Energy Agency (<span data-scayt_word="nrea" data-scaytid="230">NREA</span>)''' and the '''Rural Electrification Authority (REA)'''. Next to supervising all activities related to energy projects, it suggests electricity prices and publishes data and statistics relating to electricity production.<br/>The '''Egyptian Electric Utility and Consumer Protection Regulatory Agency (<span data-scayt_word="eeucpra" data-scaytid="234">EEUCPRA</span>)''' was established by decree in 1997 (Decree no. 326 of 1997: »Establishing the electric utility and consumer protection regulatory agency«).The regulatory authority is located in Cairo and came into formal existence in 1998.The primary task of the regulatory authority is to balance the interests of electricity producers, electricity providers and end users. It is supposed to ensure a reliable <span data-scayt_word="longterm" data-scaytid="235">longterm</span> supply of electricity while promoting and supervising environmental protection and operational reliability in the energy sector. It is also responsible for licensing the construction and operation of electricity generation, transmission and distribution facilities as well as for electricity trading. One of the authority’s declared objectives is to create an enabling environment for market-based competition within the framework of existing laws and to prevent the formation of commercial monopolies in the energy sector. <span data-scayt_word="eeucpra's" data-scaytid="238">EEUCPRA's</span> Board of Directors is nominated by the Ministry of Electricity and Energy. <span style="color: rgb(255, 0, 0);">+ EgyptERA</span><br/>The Ministry of Electricity and Energy established the '''New and Renewable Energy Authority (<span data-scayt_word="nrea" data-scaytid="241">NREA)</span>''' in 1986 for the purpose of bundling activities aiming to promote both renewable sources of energy and energy efficiency. <span data-scayt_word="nrea" data-scaytid="242">NREA</span> is the operator of all wind power installations in Egypt, including the demonstration projects in <span data-scayt_word="matrouh" data-scaytid="243">Matrouh</span> administrative district (hybrid wind/diesel system) and <span data-scayt_word="hurghada" data-scaytid="244">Hurghada</span> (5.5 MW wind farm), as well as the grid connected <span data-scayt_word="zafarana" data-scaytid="250">Zafarana</span> wind farms on the Gulf of Suez (reaching 425 MW by mid 2009 and still expanding). With the new general orientation towards private sector involvement, <span data-scayt_word="nrea" data-scaytid="252">NREA</span> also engages in supporting private investment in wind energy by providing resource assessment, the necessary data for feasibility studies and technical support for potential project developers, and by being the partner in land use agreements. Moreover, the <span data-scayt_word="nrea" data-scaytid="256">NREA</span> has a central laboratory for testing and certifying apparatus and equipment for utilizing renewable energy resources. Finally, the <span data-scayt_word="nrea" data-scaytid="257">NREA</span> offers training and upgrading courses, <span data-scayt_word="organises" data-scaytid="260">organises</span> workshops and conducts studies – both on its own and in cooperation with international partner <span data-scayt_word="organisations" data-scaytid="261">organisations</span>.<br/>The '''Egyptian Environmental Affairs Agency (<span data-scayt_word="eeaa" data-scaytid="266">EEAA)</span>''' was initially established in 1982 and restructured in 1994, according to Law 4/1994. The <span data-scayt_word="eeaa" data-scaytid="267">EEAA</span> serves as the executive arm of the Ministry of State for Environmental Affairs (<span data-scayt_word="msea" data-scaytid="272">MSEA</span>). Its administrative council is composed of the Minister of Environmental Affairs, the Chief Executive Officer of the Agency and representatives from relevant ministries, Non-Governmental <span data-scayt_word="organisations" data-scaytid="273">Organisations</span> (NGOs), the public business sector, universities and research <span data-scayt_word="centres" data-scaytid="276">centres</span>. The Agency’s activities are financed by the Environmental Protection Fund (<span data-scayt_word="epf" data-scaytid="277">EPF</span>), which is funded by donations and grants by national and foreign organizations, as well as fines and compensation awarded by courts of law. Principal functions of the agency include the formulation of environmental policies, the development and monitoring of projects and the implementation of pilot projects. The agency is further the national authority in charge of promoting environmental topics between Egypt and third parties.<br/>The government-owned and operated '''Egyptian Electricity Holding Company (<span data-scayt_word="eehc" data-scaytid="285">EEHC</span>)''' coordinates, supervises and monitors the activities of its 16 (+1 - Includes <span data-scayt_word="nrea" data-scaytid="289">NREA</span> –actually a research institute – also presents itself as the operator of the <span data-scayt_word="zaafarana" data-scaytid="295">Zaafarana</span> wind farm-therefore included as a electricity production company) affiliated companies in the field of production, transmission and distribution of electric energy. The <span data-scayt_word="eech" data-scaytid="296">EECH</span> subsidiary <span data-scayt_word="eetc" data-scaytid="290">EETC</span> is responsible for the countrywide transmission of electricity to regional and local distributors. Next to the <span data-scayt_word="eetc" data-scaytid="291">EETC</span>, there are six generating and nine distribution companies. The <span data-scayt_word="eehc" data-scaytid="292">EEHC</span> is supervised by the Egyptian '''Ministry of Electricity and Energy (<span data-scayt_word="mee" data-scaytid="293">MEE</span>)'''.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/><br/> |
| − | | + | <br/> |
| − | | + | |
| | == Others<br/> == | | == Others<br/> == |
| − | The '''Egyptian Wind Energy Association (<span data-scaytid="306" data-scayt_word="egwea">EGWEA)</span>''' is the umbrella <span data-scaytid="308" data-scayt_word="organisation">organisation</span>, representing the wind energy sector in Egypt. It assists interaction and co-operation between all relevant players with professional involvement in the field of wind energy. The <span data-scaytid="307" data-scayt_word="egwea">EGWEA</span> is <span data-scaytid="309" data-scayt_word="organised">organised</span> in a global network of wind associations. It aims at promoting and supporting the development of wind energy in Egypt by providing the means to facilitate the exchange of technical information, expertise and experience in the wind energy sector. It conducts studies, provides information on tenders and conferences and <span data-scaytid="303" data-scayt_word="organises">organises</span> workshops for interested parties. <span data-scaytid="311" data-scayt_word="iegwea">IEGWEA</span> is particularly interested in bringing forward wind energy interests of Egypt. However, the association is also engaged in the promotion of wind energy in developing countries in general.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> | + | The '''Egyptian Wind Energy Association (<span data-scayt_word="egwea" data-scaytid="306">EGWEA)</span>''' is the umbrella <span data-scayt_word="organisation" data-scaytid="308">organisation</span>, representing the wind energy sector in Egypt. It assists interaction and co-operation between all relevant players with professional involvement in the field of wind energy. The <span data-scayt_word="egwea" data-scaytid="307">EGWEA</span> is <span data-scayt_word="organised" data-scaytid="309">organised</span> in a global network of wind associations. It aims at promoting and supporting the development of wind energy in Egypt by providing the means to facilitate the exchange of technical information, expertise and experience in the wind energy sector. It conducts studies, provides information on tenders and conferences and <span data-scayt_word="organises" data-scaytid="303">organises</span> workshops for interested parties. <span data-scayt_word="iegwea" data-scaytid="311">IEGWEA</span> is particularly interested in bringing forward wind energy interests of Egypt. However, the association is also engaged in the promotion of wind energy in developing countries in general.<br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | = Energy Cooperation<br/> = | | = Energy Cooperation<br/> = |
| − | Egypt is one of the priority partner countries of the German development assistance. In the last 50 years, Egypt has received approximately 5.5 billion € development aid. The current focus areas of the bilateral cooperation are water management, renewable energies (wind, solar and<br/>hydro power), energy efficiency and climate protection.<ref name="KfW. Landesinformation Ägypten. (http://www.kfwentwicklungsbank.de)Retrieved on 8th September 2009.">KfW. Landesinformation Ägypten. (http://www.kfwentwicklungsbank.de)Retrieved on 8th September 2009.</ref> <u>Within the framework of the German development cooperation, two initiatives to promote renewable energies and energy efficiency were launched in 2008:</u><br/> | + | Egypt is one of the priority partner countries of the German development assistance. In the last 50 years, Egypt has received approximately 5.5 billion € development aid. The current focus areas of the bilateral cooperation are water management, renewable energies (wind, solar andhydro power), energy efficiency and climate protection.<ref name="KfW. Landesinformation Ägypten. (http://www.kfwentwicklungsbank.de)Retrieved on 8th September 2009.">KfW. Landesinformation Ägypten. (http://www.kfwentwicklungsbank.de)Retrieved on 8th September 2009.</ref> <br/> |
| − | *The Regional Center for Renewable Energy and Energy Efficiency (<span data-scaytid="317" data-scayt_word="rcreee">RCREEE</span>), based in Cairo. Key development partners in setting up <span data-scaytid="318" data-scayt_word="rcreee">RCREEE</span> are Egypt, Germany, Denmark and the EU Commission. Besides Egypt, other Arab members of the <span data-scaytid="319" data-scayt_word="rcreee">RCREEE</span> are Algeria, Jordan, Lebanon, Libya, Morocco, the Palestinian National Authority, Syria, Tunisia and Yemen. <span data-scaytid="320" data-scayt_word="rcreee">RCREEE</span> formulates and disseminates policies in support of RE and EE in the region and provides a platform for the regional exchange on policy issues and technological questions. In addition, <span data-scaytid="321" data-scayt_word="rcreee">RCREEE</span> encourages the participation of the private sector to promote the establishment of a regional RE and EE industry. The German development cooperation provides assistance for the establishment of the Center and the formulation of the initial work program by <span data-scaytid="322" data-scayt_word="gtz">GTZ</span>.<ref name="RCREEE 2009. -Regional Center for Renewable Energy and Energy. (http://www.rcreee.org/about.asp) Retrieved on 8th September 2009.">RCREEE 2009. -Regional Center for Renewable Energy and Energy. (http://www.rcreee.org/about.asp) Retrieved on 8th September 2009.</ref><br/> | + | Within the framework of the German development cooperation, two initiatives to promote renewable energies and energy efficiency were launched in 2008:<br/> |
| − | *The Egyptian-German High Level Committee on Renewable Energy, Energy Efficiency and Environmental Protection <span data-scaytid="324" data-scayt_word="jcee">JCEE</span>, is a bilateral Egyptian-German initiative. The <span data-scaytid="325" data-scayt_word="jcee">JCEE</span> is a platform for energy policy discussion, for developing initiatives for investment as well as institutional projects, awareness and capacity building activities and establishing contacts and exchange between the two countries. The project is financed by the Egyptian Ministry of Electricity and Energy and the German Federal Ministry of Economic Cooperation and Development (<span data-scaytid="326" data-scayt_word="bmz">BMZ</span>). The implementing partners of the cooperation are <span data-scaytid="316" data-scayt_word="nrea">NREA</span> and <span data-scaytid="323" data-scayt_word="gtz">GTZ</span>.<br/> | + | *The Regional Center for Renewable Energy and Energy Efficiency (<span data-scayt_word="rcreee" data-scaytid="317">RCREEE</span>), based in Cairo. Key development partners in setting up <span data-scayt_word="rcreee" data-scaytid="318">RCREEE</span> are Egypt, Germany, Denmark and the EU Commission. Besides Egypt, other Arab members of the <span data-scayt_word="rcreee" data-scaytid="319">RCREEE</span> are Algeria, Jordan, Lebanon, Libya, Morocco, the Palestinian National Authority, Syria, Tunisia and Yemen. <span data-scayt_word="rcreee" data-scaytid="320">RCREEE</span> formulates and disseminates policies in support of RE and EE in the region and provides a platform for the regional exchange on policy issues and technological questions. In addition, <span data-scayt_word="rcreee" data-scaytid="321">RCREEE</span> encourages the participation of the private sector to promote the establishment of a regional RE and EE industry. The German development cooperation provides assistance for the establishment of the Center and the formulation of the initial work program by <span data-scayt_word="gtz" data-scaytid="322">GTZ</span>.<ref name="RCREEE 2009. -Regional Center for Renewable Energy and Energy. (http://www.rcreee.org/about.asp) Retrieved on 8th September 2009.">RCREEE 2009. -Regional Center for Renewable Energy and Energy. (http://www.rcreee.org/about.asp) Retrieved on 8th September 2009.</ref><br/> |
| − | In addition, financial assistance is provided by the German <span data-scaytid="330" data-scayt_word="kreditanstalt">Kreditanstalt</span> <span data-scaytid="331" data-scayt_word="für">für</span> <span data-scaytid="332" data-scayt_word="wiederaufbau">Wiederaufbau</span> (<span data-scaytid="333" data-scayt_word="kfw">KfW</span>). <span data-scaytid="334" data-scayt_word="kf">Kf</span> W provided a reduced interest loan to rehabilitate the hydro electricity plants at Aswan and additional loans for the construction of medium sized hydro electricity projects at the Nile River. In the wind energy sector, <span data-scaytid="335" data-scayt_word="kf">Kf</span> W provided loans to finance an important part of the wind farm in <span data-scaytid="328" data-scayt_word="zafarana">Zafarana</span> and is supporting a new wind farm in <span data-scaytid="329" data-scayt_word="gabal">Gabal</span> El <span data-scaytid="338" data-scayt_word="zeit">Zeit</span> through loans jointly with the European Investment Bank.<br/><br/>Apart from Germany, Denmark, Japan, Spain and Italy are the most important partners providing assistance for developing renewable energies.<br/><br/>At European level, a Memorandum of Understanding to enhance EU-Egypt energy cooperation was signed in December 2008. The priority areas covered are, among others, the development of the Egyptian energy strategy, including the market reform, the convergence of Egypt’s energy market with that of the EU, the promotion of renewable energy and energy efficiency, the development of energy grids as well as technological and industrial cooperation.<br/>These include the World Bank, the UN <span data-scaytid="344" data-scayt_word="organisations">organisations</span> <span data-scaytid="348" data-scayt_word="undp">UNDP</span>, <span data-scaytid="349" data-scayt_word="unido">UNIDO</span> and <span data-scaytid="345" data-scayt_word="unep">UNEP</span> as well as the African Development Bank. For instance, Egypt is one of the first countries to present a portfolio within the framework of the Clean Technology Fund established by the World Bank in 2008 to finance RE and EE projects. Egypt plans to use $300 million in concessional financing from the fund, blended with financing from the World Bank Group, the African Development Bank, bilateral development agencies, private sector and other sources to spur wind power development and introduce clean transport options. The projects include a transmission grid extension for transporting electricity from Gulf of Suez-based wind farms.<ref name="World Bank 2009. Egypt: Renewable Energy and Clean Transport Are Cornerstones of Low Carbon Growth. In: News and broadcast. June 5, 2009. (http://bit.ly/VllxVl) Retrieved on 10th September 2009.">World Bank 2009. Egypt: Renewable Energy and Clean Transport Are Cornerstones of Low Carbon Growth. In: News and broadcast. June 5, 2009. (http://bit.ly/VllxVl) Retrieved on 10th September 2009.</ref><br/>'''Clean Development Mechanism (CDM)'''<br/>Egypt’s Designated National Authority (DNA) was established in 2005, serving as the contact point for all <span data-scaytid="177" data-scayt_word="cdm-related">CDM-related</span> matters. Organizationally, it is part of the Egyptian Environmental Affairs Agency (<span data-scaytid="178" data-scayt_word="eeaa">EEAA</span>).<br/><u>Egypt’s current climate change mitigation policies, plans and measures relevant to <span data-scaytid="176" data-scayt_word="cdm">CDM</span> are contained in:</u><br/>1. The National Environmental Action Plan (2002 – 2017).<br/>2. Egypt’s Climate Change National Action Plan (<span data-scaytid="180" data-scayt_word="eccnap">ECCNAP</span>).<br/>3. Egypt’s National Strategy Study Program on <span data-scaytid="179" data-scayt_word="cdm">CDM</span>.<br/>4. Egypt’s National Energy Efficiency Strategy (<span data-scaytid="183" data-scayt_word="nees">NEES</span>)<br/><br/>Currently, four <span data-scaytid="182" data-scayt_word="cdm">CDM</span> projects are registered. Minor corrections have been requested for one project. In April 2009, 18 projects were in the DNA pipeline, of which nine were renewable energy<br/>projects. The <span data-scaytid="185" data-scayt_word="cdm">CDM</span> potential in Egypt has been estimated at 69.75 Mt <span data-scaytid="188" data-scayt_word="co2eq">CO2eq</span>, of which around 21 % is in the renewable energy sector.27 As shown in table 10, the total annual savings of the registered RE projects amounts to 0.62 Mt <span data-scaytid="189" data-scayt_word="co2eq">CO2eq</span>. This represents 5 % of the existing potential in the renewable energy sector and around 1 % of the whole potential.<ref name="Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, Energy-policy Framework Conditions for Electricity Markets and RenewablefckLREnergies: 16 Country Analyses, Eschborn 2009, page 186.">Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, Energy-policy Framework Conditions for Electricity Markets and RenewablefckLREnergies: 16 Country Analyses, Eschborn 2009, page 186.</ref><br/>[[Egypt Energy Situation#toc|►Go to Top]] | + | *The Egyptian-German High Level Committee on Renewable Energy, Energy Efficiency and Environmental Protection <span data-scayt_word="jcee" data-scaytid="324">JCEE</span>, is a bilateral Egyptian-German initiative. The <span data-scayt_word="jcee" data-scaytid="325">JCEE</span> is a platform for energy policy discussion, for developing initiatives for investment as well as institutional projects, awareness and capacity building activities and establishing contacts and exchange between the two countries. The project is financed by the Egyptian Ministry of Electricity and Energy and the German Federal Ministry of Economic Cooperation and Development (<span data-scayt_word="bmz" data-scaytid="326">BMZ</span>). The implementing partners of the cooperation are <span data-scayt_word="nrea" data-scaytid="316">NREA</span> and <span data-scayt_word="gtz" data-scaytid="323">GTZ</span>.<br/> |
| | + | In addition, financial assistance is provided by the German <span data-scayt_word="kreditanstalt" data-scaytid="330">Kreditanstalt</span> <span data-scayt_word="für" data-scaytid="331">für</span> <span data-scayt_word="wiederaufbau" data-scaytid="332">Wiederaufbau</span> (<span data-scayt_word="kfw" data-scaytid="333">KfW</span>). <span data-scayt_word="kf" data-scaytid="334">Kf</span> W provided a reduced interest loan to rehabilitate the hydro electricity plants at Aswan and additional loans for the construction of medium sized hydro electricity projects at the Nile River. In the wind energy sector, <span data-scayt_word="kf" data-scaytid="335">Kf</span> W provided loans to finance an important part of the wind farm in <span data-scayt_word="zafarana" data-scaytid="328">Zafarana</span> and is supporting a new wind farm in <span data-scayt_word="gabal" data-scaytid="329">Gabal</span> El <span data-scayt_word="zeit" data-scaytid="338">Zeit</span> through loans jointly with the European Investment Bank.<br/><br/>Apart from Germany, Denmark, Japan, Spain and Italy are the most important partners providing assistance for developing renewable energies.<br/><br/>At European level, a Memorandum of Understanding to enhance EU-Egypt energy cooperation was signed in December 2008. The priority areas covered are, among others, the development of the Egyptian energy strategy, including the market reform, the convergence of Egypt’s energy market with that of the EU, the promotion of renewable energy and energy efficiency, the development of energy grids as well as technological and industrial cooperation.<br/>These include the World Bank, the UN <span data-scayt_word="organisations" data-scaytid="344">organisations</span> <span data-scayt_word="undp" data-scaytid="348">UNDP</span>, <span data-scayt_word="unido" data-scaytid="349">UNIDO</span> and <span data-scayt_word="unep" data-scaytid="345">UNEP</span> as well as the African Development Bank. For instance, Egypt is one of the first countries to present a portfolio within the framework of the Clean Technology Fund established by the World Bank in 2008 to finance RE and EE projects. Egypt plans to use $300 million in concessional financing from the fund, blended with financing from the World Bank Group, the African Development Bank, bilateral development agencies, private sector and other sources to spur wind power development and introduce clean transport options. The projects include a transmission grid extension for transporting electricity from Gulf of Suez-based wind farms.<ref name="World Bank 2009. Egypt: Renewable Energy and Clean Transport Are Cornerstones of Low Carbon Growth. In: News and broadcast. June 5, 2009. (http://bit.ly/VllxVl) Retrieved on 10th September 2009.">World Bank 2009. Egypt: Renewable Energy and Clean Transport Are Cornerstones of Low Carbon Growth. In: News and broadcast. June 5, 2009. (http://bit.ly/VllxVl) Retrieved on 10th September 2009.</ref><br/>[[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | = Further Information<br/> = | | = Further Information<br/> = |
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| | <references /> [[Egypt Energy Situation#toc|►Go to Top]]<br/> | | <references /> [[Egypt Energy Situation#toc|►Go to Top]]<br/> |
| | | | |
| | + | [[Category:Egypt]] |
| | + | [[Category:MENA_(Middle_East_and_North_Africa)]] |
| | [[Category:Country_Energy_Situation]] | | [[Category:Country_Energy_Situation]] |
| − | [[Category:MENA_(Middle_East_and_North_Africa)]]
| |
| − | [[Category:Egypt]]
| |
The Arab Republic of Egypt is located in North Africa and borders with Libya in the East, Sudan in the South and Palestine Territories and Israel in the East. Its population is mainly concentrated along the river Nile, as the rest of the country's territory is largely desert. Most parts of the country have has a hot desert climate with extreme heat occuring during summer. An exception is the northern Mediterranean coast which receives more rainfall during winter and has a generally more moderate climate.
Egypt is a net exporter of crude oil and natural gas. In addition, it has a strategic position in oil transfer because of its operation of the Suez Canal and Sumed (Suez-Mediterranean) Pipeline, two major routes for the transfer of Persian Gulf oil. However, the combination of increasing consumption and declining production has led to a decline in natural gas exports since 2009. In order to satisfy domestic demand, the government has been diverting natural gas supplies from exports. In terms of coal and peat, Egypt is a net importer. Coal imports are expected to increase in the short- and medium term, since the Egyptian government has approved the industrial use of coal in April 2014 and in the same year signed a construction deal for the first coal-fired power in the country.
In 2013, the Egyptian government spent 120 billion Egyptian pounds on fuel subsidies, which equals 7 % of the GDP [4]. These costs in combination with economic stagnation have contributed to the increasing deficit, which reached about 12 % of GDP in 2013. In order to alleviate this burden, the Egyptian government announced spending cuts on energy subsidies in June 2014. The Financial Times reported that these subsidies are going to be cut by almost a third [5].
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Between 2011/2012 and 2012/2013, the total installed capacity increased about 6 %, reaching 30,803 MW, due to added thermal plants. The installed capacity development by type of generation is outlined in table 2.
The main consumer of electricity in Egypt is the residential sector which accounts for 42% of the total consumption, followed by the industrial sector (28%). The consumption of the residental sector has been steadily increasing in the recent years. According to the Ministry of Electricity and Energy, this is due to two factors: the expansion of residential compounds and new communities as well as the the use of domestic appliances, air conditioners in particular, during hot weather. The development of the electricity consumption per sector is outlined in table 3.
In 2012/2013, the carrier grid consisted of 43,634 km total transmission lines and cables. The grid is subdivided into six geographical zones, namely Cairo, Canal, Delta, Alexandria and West Delta, Middle Egypt and Upper Egypt. The country’s entire territory is covered. The network is interconnected with the grids of Libya, Jordan, Syria and Lebanon. There are ongoing studies[10] for interconnections with Saudi Arabia, Sudan, the Democratic Republic of Conge, the Eastern Nile Basin (Sudan and Ethiopia) and Greece.
The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to type of consumption (e.g. residential, commercial, industrial) and amount consumed. Since the tariff is higher for higher consumption, there is an incentive to consume less. The lowest category of the residential tariff, up to 50 KWh/month, has remained unchanged since 1993 at 5 piasters (approximately 0.60 €-ct) per KWh. Since 2007, the government has been trying cut costs for subsidies. In July 2014 , electricity prices increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost [11].
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The combination of increasing demand, decreasing production and high subsidies for fuel have put a strain on the Egyptian energy sector and led to an enourmous public deficit. As of June 2014, Egypt owed 7.5 billion USD and counting to foreign oil and gas companies alone [12]. In order help meeting the energy demand and to prevent an Egyptian energy crisis, Gulf countries have been providing financial aid to Egypt. However, this kind of aid is expected to decrease as the Gulf countries are impacted by the falling oil prices of 2015.
One topic dominating energy policy debates in Egypt is the use of coal. In April 2014, the Cabinet approved the industrial use of coal. This is especially relevant for cement factories, as these are particularly energy intensive and have occasionally been cut off from the energy supply as the government's priority was to preserve gas for power generation [13].
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In February 2008, the Egyptian government adopted a New National Renewable Energy Strategy. It sets out the ambitious goal to achieve a generation of 20% of the country’s electricity from renewable resources by 2020. 12 percentage points (which means 7,200 MW) are supposed to be covered by wind energy. One third of the planned RE capacity will be state-owned projects financed through public investments by the New and Renewable Energy Agency (NREA) in cooperation with international financing institutions. Two thirds will be private sector projects, which will be supported by policies structured in three phases:
Egypt has adopted aNational Energy Efficiency Action Plan (NEEAP) (2012-2015) with cumulative energy efficiency targets of 5%. At the Council of Ministers secretariat, there is an EE unit which is the mandated entity for developing and implementing this plan. However, there is no designated energy efficiency agency and no general legal framework for EE measures [14].
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The first Ministry for Electricity and Energy was established in 1964. The Ministry supervises the Egyptian Electricity Holding Company as well as the New and Renewable Energy Agency (NREA) and the Rural Electrification Authority (REA). Next to supervising all activities related to energy projects, it suggests electricity prices and publishes data and statistics relating to electricity production.
The Egyptian Electric Utility and Consumer Protection Regulatory Agency (EEUCPRA) was established by decree in 1997 (Decree no. 326 of 1997: »Establishing the electric utility and consumer protection regulatory agency«).The regulatory authority is located in Cairo and came into formal existence in 1998.The primary task of the regulatory authority is to balance the interests of electricity producers, electricity providers and end users. It is supposed to ensure a reliable longterm supply of electricity while promoting and supervising environmental protection and operational reliability in the energy sector. It is also responsible for licensing the construction and operation of electricity generation, transmission and distribution facilities as well as for electricity trading. One of the authority’s declared objectives is to create an enabling environment for market-based competition within the framework of existing laws and to prevent the formation of commercial monopolies in the energy sector. EEUCPRA's Board of Directors is nominated by the Ministry of Electricity and Energy. + EgyptERA
The Ministry of Electricity and Energy established the New and Renewable Energy Authority (NREA) in 1986 for the purpose of bundling activities aiming to promote both renewable sources of energy and energy efficiency. NREA is the operator of all wind power installations in Egypt, including the demonstration projects in Matrouh administrative district (hybrid wind/diesel system) and Hurghada (5.5 MW wind farm), as well as the grid connected Zafarana wind farms on the Gulf of Suez (reaching 425 MW by mid 2009 and still expanding). With the new general orientation towards private sector involvement, NREA also engages in supporting private investment in wind energy by providing resource assessment, the necessary data for feasibility studies and technical support for potential project developers, and by being the partner in land use agreements. Moreover, the NREA has a central laboratory for testing and certifying apparatus and equipment for utilizing renewable energy resources. Finally, the NREA offers training and upgrading courses, organises workshops and conducts studies – both on its own and in cooperation with international partner organisations.
The Egyptian Environmental Affairs Agency (EEAA) was initially established in 1982 and restructured in 1994, according to Law 4/1994. The EEAA serves as the executive arm of the Ministry of State for Environmental Affairs (MSEA). Its administrative council is composed of the Minister of Environmental Affairs, the Chief Executive Officer of the Agency and representatives from relevant ministries, Non-Governmental Organisations (NGOs), the public business sector, universities and research centres. The Agency’s activities are financed by the Environmental Protection Fund (EPF), which is funded by donations and grants by national and foreign organizations, as well as fines and compensation awarded by courts of law. Principal functions of the agency include the formulation of environmental policies, the development and monitoring of projects and the implementation of pilot projects. The agency is further the national authority in charge of promoting environmental topics between Egypt and third parties.
The government-owned and operated Egyptian Electricity Holding Company (EEHC) coordinates, supervises and monitors the activities of its 16 (+1 - Includes NREA –actually a research institute – also presents itself as the operator of the Zaafarana wind farm-therefore included as a electricity production company) affiliated companies in the field of production, transmission and distribution of electric energy. The EECH subsidiary EETC is responsible for the countrywide transmission of electricity to regional and local distributors. Next to the EETC, there are six generating and nine distribution companies. The EEHC is supervised by the Egyptian Ministry of Electricity and Energy (MEE).
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Egypt is one of the priority partner countries of the German development assistance. In the last 50 years, Egypt has received approximately 5.5 billion € development aid. The current focus areas of the bilateral cooperation are water management, renewable energies (wind, solar andhydro power), energy efficiency and climate protection.[15]
Within the framework of the German development cooperation, two initiatives to promote renewable energies and energy efficiency were launched in 2008:
