File Photo: An electricity station in Giza. REUTERS
Egypt’s current FY2021/2022 includes total public investments amounting to EGP 43 billion for the power sector to improve its indices, which are one of the main indicators that reflect the extent of the economic progress a country achieves, Minister of Planning and Economic Development Hala El-Said announced on Thursday.
The sectors’ main targets in FY2021/22 include increasing its production by 7.4 percent to post EGP 180 billion (in current prices), up from EGP 168 billion in FY2020/21 — which represents 1.8 percent of Egypt’s GDP — according to the minister.
On the sector’s throughput, El-Said stated that it is planned to rise by 9 percent in FY2021/22 to record EGP 113 billion, up from EGP 103.5 billion recorded in the previous FY.
The minister expounded that the power sector is the cornerstone of inclusive development, as all industrial, agricultural, touristic, service, and urban sectors depend on it to operate their establishments and generate additional value.
In a recent report, Fitch Solutions expected Egypt's power sector to witness consistent growth throughout the coming decade as numerous solar, wind, and thermal power plants enter commercial operations.
Nevertheless, the country's sizable oversupply of electricity will hinder medium-term growth, weighing on the impetus to invest in new generating capacity, according to the report.
The report also stressed that investment in new electricity export infrastructure and an expanding industrial sector is expected to boost medium-long term demand to narrow the surplus, driving renewed power sector investment over the remainder of the period to 2030.