Egypt cuts fuel consumption costs by EGP 70bn as grid losses fall to 17.6%: Minister

Egypt’s Minister of Electricity and Renewable Energy Mahmoud Esmat said electricity grid losses have declined to 17.6%, while measures to improve power generation efficiency have reduced fuel consumption by the equivalent of EGP 70bn over the past two years.

Esmat added that the ministry is working to ensure there is no return to load shedding and has developed scenarios to address potential disruptions arising from geopolitical crises in the region.

He said the ministry is coordinating with the Ministry of Petroleum to prepare power generation plants to operate using available fuel mixes. Plans also include eliminating the “practice system” used for estimated electricity billing and standardising the technical assessment process across all electricity distribution companies.

Esmat said the state has placed particular emphasis on the energy sector over the past decade as part of a broader development strategy, resulting in major investments in electricity generation, transmission, and distribution. Total investments in the sector have reached nearly EGP 5tn, he added.

The minister noted that more than 35,000 MW of generation capacity has been added through a diversified energy mix that includes thermal power plants and renewable energy projects.

He said the sector has also implemented an urgent plan to address challenges affecting the stability and sustainability of electricity supplies, including completing existing power plants and upgrading their efficiency by converting them to combined-cycle operation without requiring additional fuel.

According to Esmat, the ministry has introduced operational measures to improve the efficiency of generation plants, reduce fuel consumption, and address different forms of power losses. These measures include changing plant operating patterns to increase the output generated from each unit of fuel, reducing conventional fuel consumption, and improving operational performance and energy efficiency.

“We changed the operating patterns of generation plants and applied quality and economic operation standards, succeeding in reducing fuel consumption for electricity generation to less than 170 grams per kilowatt,” Esmat said.

He also highlighted the economic importance of the El Dabaa Nuclear Power Plant, which is expected to add 4,800 MW to Egypt’s electricity grid and provide a stable source of clean electricity.

Esmat explained that the reactor pressure vessel for the first unit was installed in November 2025, describing the step as a major milestone in the project’s implementation. The reactor pressure vessel for the second unit was installed in July 2026, he added.

The minister said the nuclear plant is expected to save nearly 8bn cubic metres of natural gas annually while generating around 38,000 GWh of clean electricity.

“The government is continuing to strengthen and modernise the national electricity grid alongside the addition of new generation capacities to ensure that the network can accommodate increasing renewable energy capacity,” Esmat said. “Additionally, the grid development programme focuses on expanding electricity transmission lines, increasing the capacities of transformer substations, and upgrading control centres to create a stronger, more efficient, and flexible network.”

The minister also noted that Egypt is working to secure sustainable electricity supplies for national and strategic projects, as well as major agricultural reclamation projects, through the construction and reinforcement of substations and transmission lines.

According to Esmat, strengthening the electricity network and implementing the country’s energy strategy have also supported Egypt’s position as a regional energy hub, with existing interconnection projects linking the country with Sudan, Libya, and Jordan, alongside the ongoing electricity interconnection project with Saudi Arabia.

The Saudi interconnection project is designed to facilitate the exchange of up to 3,000 MW through a 1,320-km transmission route. Esmat said work on the project had progressed to the trial-operation stage, with a 500-kV Badr transformer substation and the Badr-Taba overhead transmission line forming part of the infrastructure.

He added that studies are also being finalised for electricity interconnection projects with Greece and Italy, which would further support Egypt’s role as an electricity link between Africa and Europe.

The ministry is also prioritising the adoption of modern technologies, the modernisation and governance of metering systems, and improvements in electricity services provided to consumers, he said. The ministry has established mechanisms for handling commercial and technical complaints, with defined timeframes for addressing their causes and ensuring compliance with quality standards.

The ministry has also developed its distribution networks and control infrastructure, with eight of nine automated control centres completed under the first phase of the development programme, according to Esmat.

In addition, 26 customer service centres have been upgraded, while 45 more are scheduled for development in the next fiscal year.

The ministry is also implementing a programme to install 1 million smart electricity meters, with 270,000 meters expected to be completed under the first phase by the end of 2026.

Esmat concluded that these measures are being implemented alongside programmes to improve energy efficiency across distribution networks, replace traditional meters with prepaid meters, facilitate customer service requests, combat electricity theft, and reduce network losses.