2014-04-02 12:09:01 - Egypt Power Report Q1 2014 - a new market research report on companiesandmarkets.com
Our outlook for the Egypt power sector remains in place this quarter, as the political situation in the country continues to remain in a state of flux. With power remaining a hot political issue, as illustrated by a series of politically-charged electricity outages over the second half of 2012 and first half of 2013, the country is in desperate need of increasing its power capacity by expanding its electricity infrastructure. However, we believe the challenge of ramping up supply is immense; not only does it require a re-prioritisation of natural gas feedstock away from exports and towards domestic consumption, but weak economic activity and high political uncertainty are set to take a toll on the country´s ability to channel investments
towards the sector.
With economic growth hinging on the provision of adequate and reliable power to vital sectors (ranging from industry and agriculture to tourism and transport), the expansion of Egypt´s electricity infrastructure is a key priority. An ambitious power sector investment programme was implemented in 2002 - with 7,000 megawatts (MW) during the first phase (2002-2007) and 11,850MW added during the second phase (2007-2012). However, power shortages have fully displayed the need to improve capacity and made the development of the sector an even more urgent policy priority for the country.
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