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130218_Luxor-Egypt SECAP Final

2.2. Sectorial Policies

2.2. Sectorial Policies Energy Efficiency in building sector Energy Efficiency in the Construction Sector in the Mediterranean (EECS-MED), a funded project by EU, has developed Guidelines and recommendations for the MENA region (January 2015). The guidelines and recommendations focus on issues such as the political leadership perspective; the boardroom perspective; outdoor lighting; and public procurement and planning. The UNDP developed two projects in the EE sector: − − Improving Energy Efficiency for Lighting and Building Appliances. The project started in 2011 and will be completed in 2017. The leading Egyptian partners are MoERE, NREA, Egyptian Electricity Holding Company (EEHC), Egyptian Authorization for Standards (EAS), and “Waty El Watt” campaign (meaning lower your watt usage). The project started in 2015, and more data is available at the UNDP 2015 Achievement Report 4 . The Egyptian National Energy Efficiency Action Plan (NEEAP) is the result of regional and international efforts known as “End-use electricity efficiency improvement and conservation guideline”, a MED-ENEC EU funded project. This plan aims to achieve an initial target, specified in the National Energy Strategy, of a 5% reduction in electricity consumption by 2020. The plan is consistent with regional and international efforts known as the “Arab End Use Electricity Efficiency Improvement and Conversation Guidelines” which were approved by the Arab Ministerial Council of Electricity in 2010. Egypt revised its strategic approach towards its energy resources and their use, which has been stared in 2016 to meet Egypt’s Vision 2030 and to Sustainable Development Strategy (SDS) 2030. One aspect of this new approach will be to significantly accelerate the adoption and implementation of energy efficiency and sustainability measures, as well as investments in carbon emission reduction targets. Sustainable Lighting In Egypt, lighting is consuming an average of 28-30 per cent of produced electrical energy with an annual average increase of 10 to 11 per cent during the past two years (2013 and 2014). This consumption has increased over the past 10 years by 7.2 per cent. According to a study by MED-ENEC, almost doubling the existing generation capacity from 27 GW (2010) to 50 GW by 2020 will be required and probably another 120 GW by 2050, if this consumption pattern continues as business as usual. Families and businesses already suffered hours of daily blackouts in some areas in 2013 and early 2014. MED-ENEC has also developed procurement and planning for public street lighting that includes conditions of tenders, tender forms and other details. Egypt is considered a pioneer in applying for large tenders for EE street lighting in 2010: 360 000 street lighting poles using high lumen HPS lamps and electronic gear were installed. The next step is replacing 5 million magnetic ballasts with digital dimmable ballasts until 2016. Street lighting is consuming 2,400 GWh at the present stage and is expected to save up to 1,200 GWh 4 UNDP – available at http://www.eg.undp.org/ (Accessed: 20.08.2016). 16

implementing the NEEAP and using smart lighting harvesting technologies. As part of the 2012 National Energy Efficiency Action Plan (NEEAP), the Egyptian government proposed concentrated activities in this field. If EE in lighting would be implemented, more than 10 per cent of the power capacity would not be needed and blackouts would be decreased. Energy efficient lighting design often produces savings between 50 per cent and 80 per cent. Renewable Energy development According to Ministry of Electricity and Renewable Energy (MoERE), 54 GW of new installed capacity (conventional and renewables) is needed through 2022, and on-going reforms in the regulatory framework and subsidies would create large opportunities for the private sector 5 . In March 2015, The Ministry of ERE highlighted the main challenges as follows: − − − Electricity demand growth is exceptionally high (6 % p.a.), High energy intensity: 26 KBT/ US$ in line with large net oil exporters, Power generation deficit (6 GW needed annually through 2022), and − Energy subsidies had reached 7% of GDP in 2013/ 2014, but it has been lowered in 2016. Today any local authority can adopt incentives for energy efficiency and the development of renewable energy according to the regulations already in place, which are in place in Egypt according to Law No. 203 of 2014, Law No. 87 of 2015, and Law No. 230 of 2016. Local authorities can also develop information tools to stimulate the local or regional market of energy efficiency and renewable energy development in their city. National Transport Strategy In Egypt, the transport sector is a major consumer of fossil fuels, therefore, contributes a significant share of greenhouse gases (GHGs). The Ministry of transport (MoTr) developed a model freight transport (MFT) strategy in close collaboration with Japanese International Cooperation Agency (JICA), considered to be a world-class multimodal transport infrastructure and management strategy. Egypt’s Transport Master Plan is under development to reach the Egypt SD strategy 2030. The MFT corridor in MINTS has identified many projects to support the MFT through 2012 – 2027. The MFT corridor in the MINTS projects represents development in all transportation modes (Ports, River, Railways, Roads, and Logistics) in order to support Egypt’s MFT Strategy. The Suez Canal Corridor new master plan is under development to support Egypt’s MFT strategy and to develop Regional MFT cooperation 6 . In 2012, a transport master plan has been also developed between the MoTr and JICA on a comprehensive nationwide system. The objective of this joint plan is to realize economically efficient transport, and to promote modal shift and to materialize reliable, competitive and safe transport modes. The study encompasses: • Conducting surveys and an analysis of the current condition in the transport sector, 5 http://www.moee.gov.eg/english_new/Presentations/EEDC.pdf/ (Accessed: 16.08.2016). 6 Transport Sector the way forward, Ministry of Transport. http://www.comcec.org/wp-content/uploads/2015/03/COMCEC_EGYPT.pdf 17

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