Minister of Electricity and Renewable Energy Mohamed Shaker said Saturday the energy subsidies in Egypt record one of the highest rates worldwide.

Delivering the minister's speech to the energy conference at the Pharos University in Alexandria, spokesman for the Electricity Ministry Mohamed el Yamani said the subsidy reforms, announced in July 2014, have contributed to putting the sector back on the right track.

Those reforms paved the way for pumping more investments to improve services delivered to the citizens and the economic activities in general, along with redirecting the saved energy subsidies to other sectors, such as health, food and education, the spokesman added.

The minister revealed that a study is being developed for the application of the corporate governance system in the subsidiaries of the Egyptian Electricity Holding Company.

Energy is one of the most important pillars of the sustainable development, which depends on environmental, social and economic policies to preserve the right of the future generations from these sources, he added.

In light of the development projects recently launched in all fields as well as the population growth that leads to an increased demand for energy, all bodies concerned should work to develop affordable and sustainable energy alternatives, the minister said.

The energy issue in all its dimensions occupies a convenient position in the mind and heart of the political leadership that is aware of the importance of the energy file, which represents the essential foundation for the future stability and development in Egypt, he added. 

Minister of Electricity and Renewable Energy Mohamed Shaker said the energy sector faced too many challenges during the last period, including the fuel shortage, the reduced availability of power plants, the high rates of energy subsidies, weak supporting policies and legislation to provide an attractive environment for investment, the absence of the appropriate financing mechanisms, and the high rates of the energy consumption growth.

As many as under construction 21,952 megawatts will be added to the national grid by the end of 2018, he added.

The minister said that his ministry adopts an integrated program to encourage the private sector to pump investments in the development of electric power projects.

Shaker revealed that a fresh strategy was developed for Egyptian energy sector until 2035 and will be referred to the Supreme Council of Energy soon.

This strategy, developed in cooperation with the European Union, dealt with a study of all the possibilities and scenarios of energy in Egypt to choose the optimal scenario until 2035, he added. 
Electricity Minister Mohamed Shaker said measures were taken to improve the energy efficiency and reduce the emissions of greenhouse gases in Egypt.

The sector adopts the optimal economic operating procedures for the power plants nationwide, he added.

Energy-saving lamps are used at homes and in the streets to improve the energy efficiency, the minister said.

He added that a smart metering project was launched to install 40 million smart meters instead of the mechanic ones currently being used within seven to 10 years.

The state is taking measures aimed at bridging the gap between supply and demand in the energy sector to secure reliable sources to save fuel in the future, through the diversification of energy sources, the minister said.

There are real opportunities for the renewable energy to be added to the energy mix in Egypt, he added.

Source: MENA