Egypt Power Report 2021

Reasons to buy

• Identify the risks  – Investors have good reasons to be wary about the political, economic and sectoral risks. The report looks beyond standard assessments of government stability to identify where the real risks might lie.
• Examine the opportunities – The report analyses progress towards potential sale of three 4.8GW power plants and questions alternative priorities that the authorities could use for evaluating bids in a process which is still opaque.
• Understand the shift towards renewables – The trajectory of Egypt’s power sector has shifted forcibly towards renewables. The report analyses the progress of that change and the opportunities which come out of it including the imminent opening of a secondary market for solar FiT projects.
• Evaluate the progress of sectoral reform – Coronavirus has slowed progress towards subsidy reform and full sector liberalisation but important steps have been taken. African Energy’s analysis of tariffs and market structure provides an estimate of the proportion of power customers now paying close to cost-reflective tariffs.
• See how procurement is evolving in line with government priorities – Egypt’s power generation procurement started with large scale state-owned EPC+finance initiatives and has progressed rapidly through the feed-in tariff and BOOT tender processes to the increasing predominance of bilaterally negotiated IPPs. The report looks at the government’s priorities as it plans for the next phase of procurement.
• Examine Egypt’s potential as a regional energy hub – The government aims to open markets in the three main regions of the Arab world, sub-Saharan Africa and in Europe. The report itemises progress towards development of the necessary interconnections.