Planning Ministry Unveils $81.4 Billion Investment Plan for Egypt's Electricity and Renewable Energy Sector in FY 2023/2024

The Ministry of Planning and Economic Development has released a report regarding the targets and investments in the electricity and renewable energy sector for the fiscal year 2023/2024.

H.E. Dr. Hala El Said, Minister of Planning and Economic Development, explained that electric power represents the fundamental cornerstone of all economic and social development plans. It is relied upon to fuel all industrial, agricultural, and touristic projects, as well as to develop new urban communities and agricultural reclamation areas, in addition to its direct correlation with the citizens' livelihood requirements.

El Said further elaborated that the growth of the Gross Domestic Product (GDP) is consistently and particularly closely linked to the growth of the manufacturing industry, directly associated with the growth of the electricity and energy sector and its capability to enhance performance rates to meet the increasing demand for energy. She added that due to the significance of the outputs of the electricity and renewable energy sector, the per capita share of electricity generated or utilized has become one of the fundamental criteria for measuring individual welfare levels and a key indicator to assess the progress and economic performance of society.

Regarding investments directed towards the sector, the report of the Ministry of Planning and Economic Development clarified that the plan for the year 2023/2024 targets total investments for the electricity and energy sector amounting to 81.4 billion pounds, compared to approximately 56 billion pounds forecasted in 2022/2023 and actual investments of 66 billion pounds in 2021/2022, with lower investments in 2020/2021.

The report pointed out that public investments account for about 85% compared to 15% for the private sector of the investments directed to the sector, with government entities accounting for approximately 52% of the total, compared to 17% for public economic bodies, and 31% for public companies; investments in 2023/2024.

The report outlined the targets of the 2023/2024 plan, aiming to increase electricity production at current prices to about 632 billion pounds by the end of the plan, compared to about 472 billion pounds in 2023/2024, a growth rate of 34%. Additionally, targeting an increase in production at fixed prices to reach about 363 billion pounds by the end of the plan, compared to about 339 billion pounds in the 2023/2024 plan.

The report added that the target is to increase the sector's output to about 275 billion pounds by the end of the plan at current prices, compared to about 203 billion pounds in 2023/2024, with a growth rate of 35%. As for fixed prices, the target is to increase it to about 145 billion pounds and 155 billion pounds in 2023/2024 and 2025/2026 respectively. The report also clarified that it is targeted for Egypt's international ranking in the Electricity Supply Quality Index to improve to 75th place by 2023/2024.