WSHPDR_2013_Final_Report-updated_version

Barriers to small hydropower development
One major barrier to the small hydropower
development is the low price of electricity, which is
highly subsidized. The governmental plan intends to
gradually accommodate the electricity prices to the
actual cost of the electricity system. The New Electricity
Law is supposed to specify the main principles of price
regulation. 6 In early 2012, subsidy cutting began for
heavy industry but further cuts are (as they have been
historically) resisted because of fear of stoking inflation
and further civil unrest. However, renewed pressure to
tackle the issue arose with the negotiation of an
International Monetary Fund (IMF) emergency loan
from the IMF to avert a balance of payments crisis. 17
The Government states that it plans to remove all
energy subsidies by 2017.
There is an agreed consensus that the majority of viable
hydropower resources have already being used. It is
estimated that over 85 per cent of the river Nile, has
already been exploited, which means that NREA would
obtain better marginal gains and financial support by
looking into other untapped non-hydro resources. 8
References
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Agricultural Organization. Available from
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3. African Development Bank (2012). Clean Energy
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Energy/ Egyptian Electricity Holding Company (2010).
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Sustainable Energy Reviews, Volume 16, Issue 1, pp.
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6. Deutsche Gessellschaft für technische
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anger across Egypt. Egypt Independent, 22 July 2012.
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Accessed September
2012.
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Analysis Briefs: Egypt. Available from
www.eia.gov/cabs/Egypt/pdf. Accessed September
2012.
9. Hydro Power Plants Executive Authority (2006).
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Change in the Mediterranean-Current and Prospective
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11. Ibrahim, A. (2012). Renewable energy sources in the
Egyptian electricity market: A review. Renewable and
Sustainable Energy Reviews, Volume 16, Issue 1 pp. 216–
230.
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law for electricity to encourage energy investments, 17
April. Available from
www.sis.gov.eg/En/Story.aspx?sid=61437. Accessed
September 2012.
13. New Renewable Energy Authority (2012). Welcome
to our website. www.nrea.gov.eg/english1.html.
Accessed December2012.
14. Vidican, G. (2012). Building Domestic Capabilities in
Renewable Energy: A Case Study of Egypt. Deutsches
Institut für Entwicklungspolitik.
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Erneuerbare Energien in Ägypten. Available from
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52/. Accessed September 2012.
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Wertschöpfunspotential für Wind und Solarkraftwerke
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17. Reuters (2012). Egypt says no plans to raise industry
energy prices this year. Thomas Reuters, 23 May.
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