7. Electricity Sector Developments in Egypt: Toward an Increasingly Clean and Independent Future

Egypt has made notable progress in advancing its alternative energy agenda, which has incented significant private sector investment in renewable energy. Egypt’s effort to diversify its power generation mix has also led to the pursuit of large-scale nuclear energy capacity, which is currently under development. Yet the nation’s alternative energy objectives are ambitious, and many challenges remain. As the most populous country in the Middle East and North Africa region with significant geopolitical and economic power, Egypt’s energy sector evolution and its prospects for alternative energy development will impact the entire region and serve as a model for other nations to observe. Given the importance of the issue, it is necessary to analyze and review sector developments holistically, evaluating both the broader context of the Egypt’s energy sector and political environment, as well as specific energy regulation and markets, governance issues, investment prospects, and the driving forces compelling Egypt to pursue the development of renewable and nuclear energy. This chapter aims to provide this broader context while examining the specific issues that will impact Egypt’s alternative energy sector, its development prospects moving forward and its implicit energy sector roadmap for the region.