Egypt is in talks to export its 10 GW of excess electricity. It aims to achieve this goal through the European market, Greece and Cyprus in particular, but also the African market. The country’s Sovereign Fund has secured the government’s backing to negotiate the necessary financial arrangements.
Egypt has started discussions on its ambitions to export energy to other countries in Africa and to Europe. The country intends to rely on its low-cost production from renewable energies to become a regional energy hub, said Ayman Soliman, CEO of the Egyptian Sovereign Fund.
“We are in discussions with European infrastructure investors, advisers and energy traders to assess the viability of this option as well as the appetite of the markets. We are interested in industrialized economies which need energy and are concerned about preserving their environment, ”said the official.
The country, which already exports gas, currently produces 50 GW of electricity, of which 10 GW is surplus. It currently produces 8.6% of its energy from renewable sources and intends to increase this share to 20% by 2022 and to 40% by 2035. This surplus contrasts with the energy deficit which the country has had to face. during the past decade, mainly in 2013 due to its particularly strong demographic growth.
The Egyptian Sovereign Fund has obtained the approval of the energy ministry to engage investors in this energy export plan. “We are identifying relevant actors in Africa in order to involve them in this plan and are also in discussion with several sovereign funds,” said Ayman Soliman.
The country which is already connected to Jordan and Libya has entered into an agreement to establish an electricity interconnection with Cyprus and Greece. The fund is looking for partners, both local and foreign, willing to co-finance transmission lines.
Source Ecofin Agency