Our research shows that the most pressing regional issues stem from unbalanced energy mixes, ageing infrastructure, dependency on single energy sources and difficulties meeting growing supply needs.
In Egypt, oil and gas comprise 96% of the country’s primary energy mix, compared to the global average of 61%. The reliance on fossil fuels, which are heavily subsidized, represents a growing burden on the government. Increasing demand for resources from energy-intensive industries has put further pressure on public and private entities alike. At the same time, investments in power generation and distribution have fallen over the past three years due to social unrest and delaying the development of many field projects. Between 2006-2014, demand for oil and gas increased by an average of 6.3% annually. However, old distribution networks and decreasing capital in upstream projects mean supplies have actually fallen during this period. Meanwhile, electricity needs have swelled over the past five years, with an average growth rate of 5.8% per year, leading to a current power deficit worth four Giga Watts.
To counter this, authorities are pushing for new concessions, gas production projects, infrastructure development and a more diversified energy mix, while implementing mechanisms to increase energy conservation. In addition, the government has begun decreasing subsidies.
Plans to boost capacity require billion of dollars in investments, most of which will come from the private sector. In this TAQA Arabia is leading the way as a private sector pioneer through its four Arms, providing comprehensive energy solutions for our customers and clients.