Egypt - Country Commercial Guide
Electrical Power Systems

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2019-10-13


Electricity generation in Egypt has reached 18,136 GW in June 2018, according to the Egyptian Electricity Holding Company (EEHC). Energy output and consumption is expected to continue to grow at remarkable rates, as much of the country, particularly Upper Egypt, remains underserved. The Ministry of Electricity and Renewable Energy (MOEE) acts as the owner of state-owned enterprises in the power sector. The electricity industry has been traditionally structured both “vertically” (along the functional lines of generation, transmission, and distribution/supply) and “horizontally” into generation and distribution/supply segments, with several companies operating within each segment. Egypt’s Electricity Law, passed in 2015 and its implementing regulations published in 2016, require the unbundling of “vertical” integration, with separate, independent companies responsible for generation, transmission and distribution.  However, this formally unbundled structure remains linked together under the umbrella of the Egyptian Electricity Holding Company (EEHC), which has 16 subsidiaries, including: one hydropower plant; five thermal electricity generation companies; nine electricity distribution companies; and a transmission-and-dispatch company, the Egyptian Electricity Transmission Company (EETC), which now functions as a transmission system operator.

All EEHC affiliates remain fully owned by the state. EEHC coordinates the plans and investments in the power sector and manages the sector’s overall finances. In addition to the EEHC affiliates, there are six authorities operating in the electricity sub-sector, which report directly to MOEE. These are the: Rural Electrification Authority (REA); Hydropower Projects Executive Authority; New and Renewable Energy Authority (NREA); Atomic Energy Authority; Nuclear Power Plants Authority; and Nuclear Material Authority.

While MOEE is adding new energy-efficient generators and refurnishing old power plants in an effort to reduce the rate of fuel consumption, much of its generation capacity remains inefficient. Egypt’s rate of electrical energy loss is relatively high, and MOEE is working to improve this rate. The Korea International Cooperation Agency (KOICA) has been cooperating with the MOEE’s Cairo North Electricity Distribution Company on introducing the Smart Grid concept. A grant from KOICA was used to implement the first phase of the Smart Grid project at the Shubra power station with the assistance of a Korean private sector company. The second phase will be conducted by the same company using the revenues generated from the savings in phase one.

In 2015, the GOE concluded an emergency plan to increase installed generation capacity. Under the plan, GE installed 2.6 gigawatts (GW) to the grid. Three combined-cycle power plants built by Siemens at a cost of $7.2 billion were inaugurated in July 2018. The powerplants are located in Kafr al-Sheikh and Beni Suef provinces and in the new Administrative Capital City under construction outside of Cairo.  The power plants are expected to add up to 14,400 MW to Egypt’s national electricity grid.

Leading Sub-Sectors

  • Smart metering
  • Smart Grid Technologies
  • Transmission lines
  • Energy efficiency technologies
  • Products and services related to power industries, transmission lines and electricity grid


To meet increasing demand, MOEE is planning to add 51.3 GW to the current installed capacity over the next three to five years, which will be diversified between oil, gas, solar, wind, hydro, coal, and nuclear resources.

An Egypt-Saudi interconnection is expected to begin operations in 2021, with a total capacity of 3 GW. A study on upgrading the interconnection voltage between Egypt and other North African countries has been carried out, but implementation could suffer long delays because of instability in Libya. Interconnection studies are ongoing for an Egyptian-European direct interconnection through Cyprus and Greece. In addition, Egypt is considering other projects for the Eastern Nile Basin and an Egypt-Sudan interconnection.

A Chinese consortium (Shanghai Electric and Dongfang Electric Cooperation) won a tender for 6 GW of coal fire power plant in Hamrawein on Egypt’s Red Sea coast at the end of 2018. It is an EPC contract (engineering, procurement, and construction). There are additional plans for more coal fired power plants to add a total of 16.4 GW of power to the national grid.

Web Resources

U.S. Commercial Service in Egypt
U.S. Embassy
Ministry of Electricity and Energy
New and Renewable Energy Authority 
Egyptian Electricity Holding Co 
Egyptian Electricity Transmission Co. 
Ministry of Investment
General Authority for Investment and Free Zones 
Egypt State Information Service 
American Chamber of Commerce in Egypt 
Egyptian Government Web Portal 
Egyptian Businessmen’s Association
Alexandria Business Association 
Federation of Egyptian Industries

Contact for the U.S. Commercial Specialist in charge of the electric power sector: Dina Bissada,