As Egypt grapples its worst electricity crisis, the country’s government has decided to allow the private sector’s participation in renewable energy initiatives. According to Mohamed Shaker, Egypt’s Minister of Electricity, the government has agreed private sector investments in the production of new and renewable energy in Egypt. However, this participation will be subject to a tariff policy for the government’s purchase of energy produced by the private sector, over the existing feed-in tariffs.
With Egypt being in the midst of its biggest-ever fuel shortage, the government is finding it increasingly difficult to supply power the required amount of power to homes and industries. Consequently, blackouts have become commonplace in the country.
Currently, the government’s focus lies on finding an efficient alternative energy source so it can supply electricity to homes and factors, as well as repay debts to foreign enterprises for developing oil wells. The latter adds complexity to the already bleak state of affairs.
Shaker told an Egyptian news portal this week that financial and legal reviews are now on the cards. These reviews will be conducted by the cabinet economic group before the government makes an official announcement inviting private investors to the new and renewable energy sector.
A number of companies have already shown interest in producing wind and solar energy in Egypt. Positive investment sentiments, underpinned by the recently-announced plan to further develop the Suez Canal, might bode well for the Egyptian power sector.
In an official statement by the ministry, it attributed the energy crisis a fuel shortage, natural circumstances, and operational failures. The government is set to implement and execute a maintenance schedule that will address the problems faced by individual power stations.