The government completed preparing the energy strategy and is set to implement it starting next year, in coordination with both the Ministry of Petroleum and the Ministry of Electricity. The total investments needed by the sectors of electricity and oil until 2022 amount to $75bn, including $45bn for electricity and $30bn for the oil sector. It was agreed to develop a long-term strategic plan that begins in fiscal year (FY) 2018/2019 and ends in FY 2029/2030. This plan was based on the studies of the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC) regarding the future quantities of produced oil and gas. Al Borsa obtained the details of the total investments required to add new electricity production capacities between 2018 and 2030. The study conducted by SOFRECO consultancy for sustainable economic and social development showed that the development of the electricity sector requires a total of $135.258bn, including $9.544bn in FY 2018/2019 alone. The needs in 2018/2019 include $6.778bn for power plants operated by natural gas and oil, $30m for hydroelectric generators, $2.502bn for wind farms, and $234m for solar power plants. The study also showed that the electricity sector needs $10bn in FY 2019/2020 for several projects, including $3.365bn for coal-fired projects, $88m for natural gas and oil projects, $8m for hydroelectric projects, $1.833bn for wind farms, $229m for solar photovoltaic cells projects, and $3.662bn for solar thermal power plants. As for FY 2020/2021, the sector will need a total of $12.916bn, divided across $7.529bn for coal projects, $88m for natural gas projects, $4m for hydroelectric projects, $1.833bn for wind farms, $490m for solar photovoltaic cells, and $2.972bn for thermal solar plants. Then in FY 2021/2022, the study indicated the need for investments worth $12.781bn, including $7.529bn for coal power plants, $88m for natural gas plants, $4m for hydroelectric projects, $1.828bn for wind farms projects, $484m for solar photovoltaic cells, and $2.848bn for thermal solar projects. The oil sector seeks to attract investments of about $30bn over the next four years to develop the gas fields in north Alexandria. Minister of Electricity Mohamed Shaker told Al Borsa that the studies of SOFRECO highlighted the required investments of $38.6bn for coal projects and $36.3bn for solar power plants projects. The study stated that the sector needs to add capacities of 51,738 MW between 2018 and 2030, including 6,950 MW from solar thermal power and 9,020 MW from solar photovoltaic cells. It added that the sector during that period also needs 9,350 MW from wind farms, 68 MW from hydroelectric generators, 100 MW from simple-cycle liquid fuel power plants, 4,650 MW from natural gas and oil projects, 16,800 MW from coal-fired plants, and 4,800 MW from nuclear power plants. Shaker said that subsidy for electricity will be reduced gradually to reach 0% in 2025. He added that the ministry aims to diversify energy sources, explaining that the plan includes beginning to establish clean-coal production plants in FY 2019/2020. The first unit of the Dabaa nuclear power plant will also enter service in FY 2023/2024 to give an output of 1200 MW. Additionally, SOFRECO noted that the Ministry of Electricity requires investments of $18.895bn in 2023/2024, including $5.4bn for the nuclear power plant, along with $3.365bn for coal-fired projects, $88m for natural gas power plants, $8m for hydroelectric generators, $3.615bn for wind farms, $923m for photovoltaic cells, and $5.496bn for thermal solar projects. The study showed that the investments needed by the Ministry of Electricity in FY 2025/2026 will amount to $23.725, including $5.4bn for the nuclear power plant, $88m for natural gas and oil power plants, $8m for hydroelectric plants, $3.631bn for wind farms, $890 for solar photovoltaic cells, and $5.296bn for thermal solar cells. In 2027/2028, the investments will reach $19.791bn, including $5.400bn for the nuclear power plant, $88m for natural gas and oil projects, $8m for hydroelectric plants, $2.874bn for wind farms, $3.056bn for solar photovoltaic cells, and $8.545bn for thermal solar plants. Finally, in 2029/2030, the sector will need investments worth $27.377bn, including $5.4bn for the nuclear power plant, $8.412bn for coal projects, $88m for natural gas and oil projects, $8m for hydroelectric projects, $2.891bn for wind farms, $356m for photovoltaic cells, and $7.522m for thermal power plants. In a related context, Minister of Petroleum Tarek El Molla said that Egypt has adopted the 2030 strategy to achieve a diversified and competitive economy that will be based on innovation and knowledge and on the foundation of fairness and social justice. El Molla added that the ministry's strategy for 2030 is based on three main foundations: securing domestic needs of power through self-sufficiency; sustaining production and providing a fertile environment for investment; and drafting legislations that define working methods in the field of energy and that facilitate investment opportunities. He noted that the Ministry of Petroleum adopts that strategy because energy is the fuel for economic growth. El Molla pointed out that the oil and gas sector in Egypt is full of potential investment opportunities across all industry phases, stressing that the goal is to make certain the establishment of a sustainable investment environment, to support economic growth in Egypt, and to ensure the oil sector helps in improving the investment climate by providing financial incentives, securing skilled labour, and following rules and regulations that aim to achieve cooperation and successful partnerships. The minister said that the most important results in the past three years include the signing of 70 new agreements in search, exploration, and production with major international companies with investment amounting to $15bn, along with the Zohr find—the largest field for Egypt and in the Mediterranean Sea. This is in addition to attracting investments of about $30bn earmarked for the coming three to four years to develop north Alexandria projects. He added that the ministry completed the two largest petrochemical projects, located in Damietta and Alexandria, with investments of $4bn. He said that despite the challenges in the sector, the ministry is following a clear map supported by the necessary structural reforms. El Molla also noted that the ministry has begun developing and upgrading a programme that aims to implement a comprehensive scheme for oil and gas in Egypt as to achieve a more modern and efficient sector. The minister added that the plans and programmes that are currently being implemented will bear fruit in the coming years and will contribute to achieving the strategic goal of Egypt to become a leading regional hub for oil and gas and a role model for other countries in the future.
