Egyptian Member of Parliament, Mohamed Abdo, has submitted a parliamentary question to Minister of Electricity and Renewable Energy, Dr. Mahmoud Essam, regarding the impact of the country's strategic shift towards renewable energy on electricity prices. Abdo emphasized that the development of the energy mix should not only focus on increasing capacities and improving network efficiency but also on reducing the financial burden of electricity costs on citizens and production sectors.
The Egyptian government has set a target to increase the contribution of renewable energy to 45% of the energy mix by 2028, with a focus on expanding solar and wind energy projects. Abdo noted that while this shift is crucial for diversifying production sources and reducing dependence on traditional fuels, the key question is when this transformation will be reflected in the cost of electricity production and the final price for consumers.
Abdo pointed out that reducing dependence on gas and mazut, and minimizing the impact of global fuel price fluctuations, should lead to a noticeable improvement in the economics of electricity production. He also highlighted the significant investments in updating transmission and distribution networks, expanding interconnection projects, and developing smart grids, which should translate into a more efficient and cost-effective system.
The MP inquired about the specific targets set by the Ministry to measure the impact of these investments on the cost of producing one kilowatt-hour of electricity. He also asked if there is a clear plan to gradually reduce electricity costs as the share of renewable sources increases. Abdo stressed that the success of the energy security strategy is not only measured by the state's ability to secure supplies and meet demand but also by its ability to balance energy sustainability and cost.
Abdo requested that the Ministry of Electricity clarify how the expansion of solar and wind energy, energy storage projects, and improved network efficiency will affect electricity prices in the coming years. He emphasized the need for the benefits of developing the energy system to be directly reflected in economic returns that citizens and the production sector can feel.
The issue of high electricity prices has been a concern for many Egyptians, with some complaining about unexpected deductions from their prepaid electricity cards. The Ministry of Electricity has previously stated that the deductions are due to changes in consumption patterns and technical issues with the smart grid system.
The Egyptian government has been working to increase the use of renewable energy sources, including solar and wind power, in an effort to reduce the country's reliance on fossil fuels and decrease greenhouse gas emissions. The Ministry of Electricity has announced plans to develop new renewable energy projects, including a large-scale solar power plant in the Benban area, which is expected to be one of the largest in the world.
Key points
- The Egyptian government aims to increase the contribution of renewable energy to 45% of the energy mix by 2028.
- The Ministry of Electricity has been working to develop new renewable energy projects, including a large-scale solar power plant in the Benban area.
- The MP's question highlights the need for the benefits of developing the energy system to be directly reflected in economic returns that citizens and the production sector can feel.
