- The ministry last presented its Integrated Sustainable Energy Strategy 2035 with the ministry of electricity and renewable energy in 2016.
- Energy subsidy reform, energy efficiency, renewable energy and hydrogen are additional vital pillars of the plan.
According to Tarek El Molla, the country’s petroleum and mineral resources minister, Egypt will set out its national low-carbon energy strategy in the coming weeks to adapt to technological advances and global geopolitical circumstances. “Time evolves and technology advances, and with the challenges over the last few years, especially after the Russia-Ukraine war. we have started to update our energy strategy”. The ministry last presented its Integrated Sustainable Energy Strategy 2035 with the ministry of electricity and renewable energy in 2016.
At the UN climate conference COP27 in November, Egypt brought forward its goal of sourcing 42 per cent of its energy from renewable sources by 2035 to 2030. Its current renewable energy component is about 20 per cent. However, as the country suffers from the economic fallout of the Russia-Ukraine war, it is also looking for ways to solve its foreign currency crunch and maximise its natural gas exports. Egypt has increased natural gas exports to Europe during its energy crisis, as supplies from Russia were cut by more than 80 per cent last year, and prices surged.
Mr El Molla said at the Egypt Petroleum Show in Cairo last month that the state is planning to offer three international gas and oil tenders this year and has an “ambitious plan” to drill more than 300 exploration wells by 2025. He said, “Decarbonisation and a transition to low-carbon energy sources, including natural gas, will be core elements of Egypt’s oil and gas sector strategy. Energy subsidy reform, energy efficiency, renewable energy and hydrogen are additional key pillars of the plan.”
He added, “We need to go away from subsidies. More subsidies mean more consumption, cheaper treatment of products, more emissions, and more pollution. If you put the right price for the right fuel, it reflects on the consumption.”