Egypt has set development and reform of its energy sector as a key priority as it seeks to rebuild its economy following the country’s second revolution in the past few years, the country’s president, Abdel-Fattah el-Sisi, said January 19 during his first official visit to the UAE in that role.
During his keynote address to the World Future Energy Summit in Abu Dhabi, Sisi also said he considered the security of the Persian Gulf region to be “part and parcel of Egyptian security.” The annual Abu Dhabi WFES gathering, while primarily a UAE forum for promoting and discussing regional and international renewable energy development, has also developed a significant political agenda.
Egypt, which has grappled with fuel and electricity shortages since the January 2011 revolution that ousted the country’s autocratic former president Hosni Mubarak, was developing a national energy policy aimed at eliminating the gap between supply and demand in the Arab world’s most populous country while providing a foundation for sustainable economic development, he said.
Key pillars of the emerging energy policy would include measures to increase oil and gas production; diversifying the power generation sector to encompass “clean coal” technology and nuclear energy, as well as more gas and renewable energy to displace fuel oil thermal power generation; a five-year program of fuel and electricity subsidy reform; accelerating repayment of government debts to international contractors; and optimizing exploitation of Egypt’s geographic position between oil producers and consumers, especially through a project to expand the Suez Canal and associated oil pipelines.
Sisi also announced an ambitious target for renewable energy development, which he said would be required to contribute 20% of Egypt’s power supply by 2020.
The country would seek investment aimed at installing 4,300 MW of solar and wind-based power generation capacity within the next three years, he elaborated.
“The huge investments required will call for private sector involvement,” Sisi said, referring to Egyptian energy development in general. He added that it would also be necessary to lower perceptions of risk associated with investment in Egyptian project in order to attract the necessary financing.
Addressing political issues as much as energy in his address, Sisi described the widespread popular protests in Egypt against the Muslim Brotherhood-affiliated government led by his predecessor, Mohammed Morsi, which culminated in July 2013 with the military coup that brought him to power, as Egypt’s second “revolution” within the space of three years.
Sisi subsequently resigned his army general’s post to run successfully for president in an election marred by a boycott by Muslim Brotherhood supporters.
Following those tumultuous events, Saudi Arabia, Kuwait, and the UAE supported Sisi’s government with billions of dollars of direct financial aid as well as fuel donations. The three key Arab exporters of Persian Gulf crude and Egypt have been cementing their relationships ever since, presenting in particular a united front to confront regional security threats from the rise of radical Islam.
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| Platts London Oil Forum February 9, 2015, London, UK |
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Platts’ editorial and price group team will address the main oil markets developments, initiatives and strategic shifts that are driving Platts’ vision for 2015.
Following this, there will be product-focused sessions which will explore in depth market fundamentals and methodological responses.
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The post Egypt’s Sisi outlines national energy policy at World Future Energy Summit appeared first on The Barrel Blog.