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Egypt halts electricity load reduction

The Ministry of Electricity and Renewable Energy has decided to halt power load reduction, as fuel supplies meet needs.
19.09.24 | Source: Ahram Online

The official indicated that no power load reduction will be applied in the coming months for two reasons.


First, the lower temperatures and improved weather have resulted in a 20-30 percent decrease in consumption and load.


Second, the daily fuel supplies necessary to operate the stations, including gas and mazut, are being provided.


Ahram Online could not reach the electricity ministry spokesperson to confirm or deny the decision regarding halting the power load-shedding plan.


The government has implemented a load-shedding programme since the summer of 2023, which saw rolling power cuts of two hours across neighbourhoods nationwide, to reduce the pressure on the grid.


In July, Egypt’s Prime Minister Mostafa Madbouly announced the suspension of the load reduction plan from 21 July until 15 September, pledging to solve the issue by the end of 2024.


As of Wednesday, 18 September, citizens have not witnessed any daily power cuts similar to those experienced before Madbouly’s announcement.


However, the government has not yet officially announced whether or not load reduction measures will be reinstated.


Madbouly also stated in July that to combat this shortage, Egypt would import natural gas worth $1.18 billion to end the load-shedding programme, contracting for 21 liquified natural gas (LNG) shipments to supply power plants with fuel.


Nevertheless, a week ago, the Spokesperson for the Ministry of Petroleum and Mineral Resources Hamdy Abdel-Aziz noted in media remarks that the state has increased the contracted LNG shipments to 32 instead of 21.


This increase in shipments is to ensure adequate supplies for operating power plants and preventing any outages in the coming period, Abdel-Aziz added.


He clarified that the amount of fuel and gas needed to generate electricity is directly influenced by weather conditions. As temperatures drop, the amount needed to generate electricity decreases accordingly.


Earlier in July, the government stated that the power load reduction is due to increased power consumption, especially amid the ongoing heatwaves in Cairo, which has increased the amount of mazut and natural gas needed for power generation.


“Should any power cuts happen in the coming period, they would be due to emergency or technical malfunctions. Efforts will be made to repair the issue within no more than 30 minutes, during which equipment will be replaced, and the safety of the electrical supply will be ensured,” the official told Al-Arabiya.


However, he stressed that with the decrease in temperatures, malfunctions are expected to lessen, especially since some equipment, such as kiosks, transformers, and cables, are more prone to damage and overheating in higher temperatures.


In August, Egypt increased electricity prices for residential units, for the second time this year, ranging between 10 and 40 percent for different brackets, with the highest shouldering the largest hike.  


According to Madbouly, even after the price increase, “electricity prices in Egypt are [still] among the lowest in the world for both residential units and commercial activities.”


Madbouly also explained that the hikes come as part of plans to rebalance the government’s spending on electricity with what it collects in its revenues over the coming four years.

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