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Egypt Cuts Fuel Use in Power Sector, Grid Losses Drop to 17.6%

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Egypt Cuts Fuel Use in Power Sector, Grid Losses Drop to 17.6%

Egypt’s electricity ministry said grid losses fell to 17.6% and fuel consumption fell by the equivalent of 70 billion Egyptian pounds over the last two years.

What happened

Minister of Electricity and Renewable Energy Mahmoud Esmat reported that changes to plant operating patterns and efficiency upgrades reduced fuel use to less than 170 grams per kilowatt hour. The ministry also plans to end estimated billing and standardise technical assessments across distributors.

Why it matters

Lower fuel use saves billions of pounds and eases pressure on the national gas supply. Reducing losses improves reliability and helps avoid load‑shedding, a recurring problem during regional crises.

Background

Egypt has invested nearly 5 trillion pounds in power generation, transmission and distribution in the past decade. More than 35,000 MW of capacity has been added, mixing thermal plants, renewables and the under‑construction El Dabaa nuclear plant, whose first reactor pressure vessel was installed in November 2025 and the second in July 2026.

What comes next

The ministry is coordinating with the petroleum ministry to optimise fuel mixes and is preparing scenarios for potential disruptions. The nuclear plant is expected to add 4,800 MW, save about 8 billion cubic metres of gas annually and generate roughly 38,000 GWh of clean electricity, further strengthening the grid.

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