180917_CES-MED_National_Report_Egypt_FINAL2rev

of signing the agreement), concerning energy policies reform and providing technical assistance to
support the Government reform of the energy Sector which started in 2014. The EU’s TARES Project
looks at 18 per cent energy saving by 2035 13 ; however, it is not clear if this target can be achieved.
TARES aims to improve energy policy and regulatory framework and promote energy efficiency and
mitigation of GHG emissions 13 . The ESPSP intended to support Egypt’s government in executing its farreaching
energy reforms and to foster implementation of its strategic energy partnership with the EU
to improve energy security and sustainable development 13 . In July 2014, the first outcome of the
Government’s energy policy reform was enacted by a Ministerial decree that increased the primary
energy prices and electricity tariff, in turns a part of the subsidies was lifted up 14 . This reform led to the
drop of the subsidies in August 2014 from 20 per cent to 17.5 per cent, i.e., by 2.5 per cent in the 1 st
year. In this project, the EU and Egypt anticipated that it could feasibly achieve energy savings up to 20
million tons of oil equivalent (mtoe) by 2035, corresponding to 18 per cent of the total consumption in
2035. The expectations are that potential savings might affect all sectors including the construction,
industry, and transport sectors with 8.6mtoe, 6.76mtoe, and 4.5mtoe, respectively (published on the
EU External Action web site, 19 th July 2016) 13 . The second round of reform in electricity Tariff was
enacted on August 8, 2016 by the Ministerial Decree No. 364 (2016) that increased the prices of
electricity.
According to the Egypt’s Energy Strategy for 2030, it is expected that Egypt will be an importer of oil
within ten years, namely from the start of this century’s third decade, if energy saving measures are
not applied and enhanced in all sectors. This situation represents an additional challenge for the
economy that may be affected by the price fluctuations in the international energy markets.
Nevertheless, with the current natural gas discovery, this means revisiting such strategy for
modification, yet emphasise the urgency of more energy saving measures to curb high energy demands
and promote energy efficiency which would lead to exporting most of such natural gas discoveries.
Thus, Sustainable Energy (Renewable Energy and Energy Efficiency) is the way forward to achieve
energy saving targets and lower the dependence on conventional resources to produce and generate
electricity in cities. Therefore, the diversification of the energy sources to maximize the benefits of
using local resources, which are characterised by continuous and stable prices; such as investing in the
generation of electricity from renewable resources that are rich in Egypt, while applying energy saving
measures and policies that are of prime importance. Local governorates can contribute to sustainable
energy savings through SEAPs (SECAPs) implementation. The next section summarises the legal and
institutional framework with the suggested recommendations that would assist implementing the
SEAP in the two governorates.
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THIS PROJECT IS FINANCED BY THE EUROPEAN UNION AND IS IMPLEMENTED BY THE HUMAN DYNAMICS CONSORTIUM