Amid extreme temperatures, the state-owned electricity company is struggling to meet the demand for electricity and air conditioning in a population of over 114 million.
By MINA NADER/THE MEDIA LINE, JACOB WIRTSCHAFTER/THE MEDIA LINEJULY 1, 2024
CAIRO – Egyptians are becoming increasingly frustrated and impatient due to prolonged power outages caused by extreme heat and a shortage of natural gas. The state-owned electricity company is struggling to meet the demand for electricity and air conditioning in a population of over 114 million.
This week, temperatures soared above 104° Fahrenheit (40° Celsius) in Cairo and peaked at 122° Fahrenheit (50° Celsius) in southern Egypt, significantly increasing electricity demand.
“I must charge my wheelchair battery for four to six hours every three days. As it weakens, I’ll have to charge it for two hours every day, or I’ll have to replace it,” said 37-year-old Selim Habib, who spoke by telephone to The Media Line from Minya in Upper Egypt where temperatures hit 104° F Wednesday.
“I face power outages every day at home from 3 p.m. to 5 p.m. and at work from 4 p.m. to 6 p.m., which means I have no electricity for four hours daily. There’s also a two-hour outage at home during lunchtime,” Habib added. “Moreover, due to power outages in my village, I lose my internet connection for four hours every day. Sometimes, this situation can extend to six hours, which affects our sales process.”
Egyptian Prime Minister Mostafa Madbouly chaired a special cabinet meeting on Monday to address the crisis after the Egyptian Electricity Holding Company extended one-hour rolling blackouts, which started in May, to up to three hours of nationwide service interruption. These blackouts were initiated to maintain the operational efficiency of transmission and natural gas networks.
Following the cabinet session, the electricity and petroleum ministries issued a public statement of regret, which is unusual for President Abdel Fattah el-Sisi’s government. His ten years in office have been filled with confident statements about the success of his development policies, especially in the infrastructure and energy sectors.
“The Ministry of Electricity and the Ministry of Petroleum apologize to the people of Egypt for the announced measures to extend the periods of reduced electricity usage,” read the statement from Electricity and Renewable Energy Minister Mohamed Shaker and Petroleum and Mineral Resources Minister Tarek El-Molla.
Government officials blame the power crisis on the ongoing high temperatures and supply issues, which “disrupted pre-planned coordination to secure the necessary fuel quantities for the increased summer consumption.”
An estimated 66% of Egypt’s electricity production is generated by natural gas. In 2015, Italian energy company ENI’s discovery of a massive deep-water gas field called Zohr, which is 93 miles (150 kilometers) north of Port Said, was billed as a game changer for the country. This gas field has since allowed Egypt to produce enough power for domestic needs and become an energy exporter.
ENI executives and Egyptian officials estimated that the Zohr field held 30 trillion cubic feet of natural gas reserves, making it the largest in the Mediterranean.
“Without the Zohr gas field, Egypt would have an electricity shortage due to the high cost of gas imports, estimated at $10 billion per month,” el-Sisi stated at the Egyptian Economic Conference held in the New Administrative Capital in 2022.
However, Cairo has struggled to balance the need to power Egypt’s domestic electricity grid with the need to generate the foreign currency required to cover government spending. This includes public services, arms imports, and the construction of el-Sisi’s $58 billion New Administrative Capital.
The government implemented a nationwide “energy consumption rationing plan” to conserve natural gas and redirect it to exports, thereby capturing foreign currency.
Ever since, rolling blackouts have become a part of daily life for the Egyptian public.
“The current crisis can be considered an indication of inadequate planning. There were clear warning signs that should have been addressed,” said economist Mohamed A. Fouad, a former member of the Egyptian parliame
“Between 2014 and 2020, roughly 25 to 27 billion dollars were expended in the power generation sector, accounting for almost 20% of Egypt’s total debt. These investments led to an increase of about 30,000 megawatts in electricity generation capacity, thanks to the establishment of 31 new electric power production stations and the Benban solar energy complex,” Fouad explained to The Media Line.
“However, fast forward to 2023, and we faced a dilemma. Despite our capacity to generate ample energy, we encountered issues with power cuts during hot days. Notwithstanding the government’s statement about self-sufficiency in gas and petroleum products by 2023, the reality shows a different picture. Currently, there is a 30% gas shortage, and we still import 25 to 30% of the diesel needed.”
Much of the shortage stems from disappointing production at the Zohr field.
“ENI has revised its gas reserve estimates for the Zohr field from 30 trillion cubic feet to under 10 trillion. According to energy researchers, issues such as seawater infiltration and reservoir pressure have contributed to the decline in productivity at the Zohr field. Initially, the Egyptian government and ENI refuted these claims. However, the reduced gas production from this field still significantly impacts Egypt’s overall gas output. Whether due to operational processes or inaccurate estimates, the outcome is the same – a decrease in gas production,” Fouad added.
Egypt’s government has also cited interruption in gas imports from Israel, instituted one month after the October 7 Hamas attack from Gaza.
In November, the cabinet released a statement claiming gas imports from Israel’s Tamar gas field fell to zero from 800 million cubic feet per day, contributing to a power generation deficit.
While some supply had resumed, Prime Minister Madbouly referred to the “neighboring supply country stoppage” in his press conference Tuesday to explain the rolling blackouts.
Mohamed Anwar Esmat al-Sadat, the nephew of the assassinated Egyptian president Anwar al-Sadat, told The Media Line that he hoped for a solution to restore the gas flow from Israel to Egypt, ensuring mutual benefit for both countries.
“Gas flows from Israel to Egypt are in crisis now because of what happened on October 7 and afterward,” said al-Sadat, the founder of the liberal Reform and Development party.
“Israel tightened the valve on Egypt as a form of political pressure, even though these are economic agreements that should have nothing to do with political positions,” he added.
“Israel believes that Egypt is not supporting or responding to some of its requests or actions,” al-Sadat stated. “It is clear that the productivity of the Egyptian gas fields is not meeting our needs. While I don’t have the exact numbers, there is a shortage of dollars to import enough diesel to operate electricity stations and liquefied gas to meet the country’s needs until the flow of Israeli gas returns to normal.”
“We hope both governments will reach a solution and believe it will result in a win-win situation,” he concluded.
Meanwhile, Egyptians are sweltering and struggling to cope with excessive heat and power outages.
“The electricity is cut off daily from 6 p.m. until 10 p.m. and from the morning until 6 p.m. It can also be cut off for two hours, even at terrible temperatures. I can’t sit inside the kiosk without electricity or fans, and no one will buy a bottle of water or a Coca-Cola that’s not chilled,” 44-year-old Cairo kiosk owner Muhammad Rayan told The Media Line.
“When the electricity comes back on after being cut off, the refrigerator motors will burn out if the power comes back at high voltage and they aren’t unplugged. I have four beverage coolers, which will cost about $1,000 to replace. Sales activity has been at its lowest point since COVID-19. People have become poor. What does El-Sisi want from us? I’m going crazy,” Rayan said.