Egypt Energy Situation E04

Electricity

General Data

Table.9: The General Electricity Situation in Egypt

	Electricity
	Production	Consumption	Exports	Imports	Installed Generating Capacity
Rate	171.9 billion kWh	150.4 billion kWh	1.158 billion kWh	43 million kWh	38.88 million kWh
World Ranking	24	25	57	106	27

Electricity Access

According to the U.S. Central Intelligence Agency (CIA)'s 2018 report, only around 300,000 people of the whole Egyptian population is currently without access to electricity.

Table.10: Electrification Percentages in Egypt

	Electrification
	Total Population	Urban Areas	Rural Areas
%	99.6	100	99.3

Installed Capacity and Generation

Table.11: Percentages of Different Electricity-Generating Energy-Sources in Egypt

	Electricity Generated From:
	Fossil Fuels	Nuclear Fuels	Hydroelectric Plants	Other Renewables
% of the Total Installed Capacity	90.5	0	7.3	2.2
World Ranking	58	83	125	115

Between 2011/2012 and 2012/2013, the total installed capacity increased about 6 %, reaching 30,803 MW, due to added thermal plants. The installed capacity development by type of generation since 2008 is outlined in table 12.

Table 12: Installed capacity development by type of generation (in MW) 2008-2013

	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013
MW
Renewable	425	249	687	687	687
Steam	11,458	11,458	12,859	12,684	13,808
Hydro	2,800	2,800	2,800	2,800	2,800
Combined Cycle	7,178	7,137	9,327	10,077	10,080
Gas	1,641	2,841	1,376	2,826	3,428
Total	23,502	24,762	27,049	29,074	30,803

In addition, Egypt has 30 decentralized power plants, mostly diesel and gas turbine units which are not connected to the national grid. The combined installed capacities of these plants added up to 224 MW in 2012/2013. Approximately 234.5 GWh of electricity were supplied to local users including tourist resorts.

Egypt is a net exporter of electricity, importing 77 GWh while exporting 474 GWh of electricity in 2012. In 2012/2013, the average percentage of network losses were 11.02%.

Between 2001 and 2012, electricity production rose from 83,282 GWh to 164,364 GWh. The main source for the production of electricity is gas (66%) followed by hydro (18.2%) and oil (15.6%). The Egyptian Electricity Holding Company (EEHC) operates with five-year plans. The current one (2012-2017) foresees the installation of 15.000 MW additional capacity. However, due to the increasing demand, the reserve margin is still expected to remain tight.

Consumption

The main consumer of electricity in Egypt is the residential sector which accounts for 42% of the total consumption, followed by the industrial sector (28%). The consumption of the residential sector has been steadily increasing in the recent years. According to the Ministry of Electricity and Energy, this is due to two factors: the expansion of residential compounds and new communities as well as the use of domestic appliances, air conditioners in particular, during hot weather. The development of the electricity consumption per sector is outlined in table 13.

Table 13: Electricity consumption by sector (GWh) 2008-2013

Sector	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013
GWh
Industries	37,273	38,916	40,702	42,098	39,887
Agriculture	4,617	4,834	4,927	5,560	6,230
Utilities	4,714	5,555	5,759	6,010	5,904
Public lighting	6,982	7,050	6,186	6,537	6,210
Governmental entities	5,563	5,443	5,977	6,385	7,664
Residential	43,811	47,431	51,370	56,664	59,757
Commercial & others	8,754	9,674	10,238	10,715	14,605
Total	111,714	118,903	125,159	133,969	140,257

Grid

In 2012/2013, the carrier grid consisted of 43,634 km total transmission lines and cables. The grid is subdivided into six geographical zones, namely Cairo, Canal, Delta, Alexandria and West Delta, Middle Egypt and Upper Egypt. The country’s entire territory is covered. The network is interconnected with the grids of Libya, Jordan, Syria, and Lebanon. There are ongoing studies for interconnections with Saudi Arabia, Sudan, the Democratic Republic of Congo, the Eastern Nile Basin (Sudan and Ethiopia) and Greece.

Table.14: Indicators of Egyptian Grid

Category	Installed Capacity	Max Load	Transmission Grid	Generated Energy
Indicator	45192 MW	30400 MW	45000 Km	186320 GWh

Electricity prices

The prices of electricity in Egypt range among the lowest in the world. The prices are fixed by the Egyptian and are highly subsidized. The tariff structure varies according to the type of consumption (i.e. residential, commercial, industrial) and amount consumed. Since the tariff is higher for higher consumption, there is an incentive to consume less. The lowest category of the residential tariff, up to 50 KWh/month, has remained unchanged since 1993 at 5 piasters per KWh.

Since 2007, the government has been trying to cut costs for subsidies. In July 2014, electricity prices were increased as part of a five-year plan which aims to start generating profits from electricity, which is currently sold for less than half its production cost.

Egypt Energy Situation E03

Consumption

Egypt is by far the largest consumer of oil and natural gas in Africa, showing 22% of petroleum and other liquids of the continent's total consumption and 37% of its dry natural gas consumption.

The main drivers of the rapid growth of the country's consumption of oil and natural gas can be summarized in the following:

1. The increased industrial output.
2. Economic growth.
3. Intense extraction projects of oil and natural gas.
4. Population growth.
5. The inclining rate of private and commercial vehicle sales.
6. The generous subsidy policy, that is focused on energy products.

Through this sub-chapter, different consumption data will be presented, using different sources, to get a holistic view as possible of the energy consumption situation in the country.

Table.4: Egypt’s Primary Energy Consumption since 1965

Year	1965	1975	1985	1995	2000	2005	2010	2015	2016	2017
Rate	7.8	10.5	28	37.3	48.4	60.5	78.4	84.4	88.2	91.6

Table.5: Egypt’s Primary Energy Consumption by Fuel 2016-2017 

	Oil	Natural Gas	Coal	Nuclear	Hydro-Electric	Renewable	Total
2016	42	42.4	.2	-	3	.6	88.2
2017	39.7	48.1	.2	-	3	.6	91.6

Table.6: Egypt’s Final Consumption of Different Energy Sources during the 2000s

	2000	2005	2012	2013	2014	2015	2016	2017
Coal	453	203	204	188	188	200	211	224
Oil	17898	20156	27009	22573	26333	35213	36086	37028
Natural Gas	4274	9182	12719	18202	19505	20956	21446	21960
Electricity	5559	7918	12060	12324	12306	12668	13134	13630

Table.7: Egypt’s Industrial Consumption of Different Energy Sources during the 2000s

	2000	2005	2012	2013	2014	2015	2016	2017
Oil	5461	5548	3716	3279	3133	6369	6713	7080
Natural Gas	2072	5567	6649	6789	8002	9083	9303	9536
Electricity	2111	2812	3430	3500	3288	369	3488	3612
Coal	453	203	204	188	188	200	211	224

Table.8: Egypt’s Transport Consumption of Different Energy Sources during the 2000s

	2000	2005	2012	2013	2014	2015	2016	2017
Oil	9060	9371	15547	12362	16416	16892	17098	17312
Electricity	-	-	44	44	45	46	46	47

Fig.6: A Pie-Chart of the Egyptian Primary Energy Consumption in the Year 2016 (EIA, 2018)

Import and Export

Egypt is a net exporter of crude oil and natural gas, however, the combination of increasing consumption and declining production has led to a decline in natural gas exports since 2009, as the government started to divert natural gas supplies from exports, in order to satisfy domestic demand, eventually turning the country into a natural gas importer since 2015. 

In terms of coal and peat, Egypt is a net importer, and coal imports are even expected to increase in the short-medium term, since the Egyptian government has approved the industrial use of coal in April 2014, and in the same year signed a construction deal for the first coal-fired power in the country.

Subsidies

In 2013, the Egyptian government spent 120 billion Egyptian pounds (about 13.8 billion EUR) on fuel subsidies, which equals 7% of the GDP. These costs in combination with economic stagnation have contributed to the increasing deficit, which reached about 12% of GDP in 2013. In order to alleviate this burden, the Egyptian government announced spending cuts on energy subsidies in June 2014. The Financial Times reported that these subsidies are going to be cut by almost a third.

Egypt Energy Situation E02

Energy Access

According to the latest Tracking SDG7 Report on The Energy Progress, that was jointly prepared by:International Energy Agency (IEA), International Renewable Energy Agency (IRENA), United Nations Statistics Division, World Bank Group and World Health Organization, the state of energy access through Egypt is illustrated through the following table and figures^[8]:

Fig.2: Total Energy Access in Egypt 1990-2015 (Tracking SDG7, 2018)

The report shows that since around 2014/2015, the total Egyptian population has had access to reliable energy sources, and only 2% of the whole population has no access to clean cooking.

Fig.3: Urban & Rural Energy Access in Egypt 1990-2015 (Tracking SDG7, 2018)

Table.2: Percentage of Egyptian Population's Access to Electricity & Clean Cooking

	Access to
	Electricity	Clean Cooking
% of Population	100%	98%

Production 

Table.3: Egypt’s Production of Different Energy Sources during the 2000s 

	2000	2005	2012	2013	2014	2015	2016	2017
Coal	20	14	0	0	0	0	0	0
Crude Oil	33189	30111	32142	29537	32825	33210	30835	31885
Natural gas	18555	35901	54839	50143	39084	34763	34763	35362
Electricity from Fossil Fuels	5302	8211	12250	12250	13431	14355	14514	14679
Hydro Electricity	1260	1087	1112	1113	1188	1155	1171	1187
Electricity from Renewable	12	47	139	139	145	137	150	165
Refinery/Oil Products	23449	28561	24754	21836	25348	25676	26357	270565

Installed Capacity

With accordance to the EIA's report on Egypt (2018), the following graph and pie-chart highlight the installed capacity of different energy sources in the country from 2007-2016 in terms of fiscal years.

Fig.4: Egyptian Installed Capacity of Different Energy Sources per Fiscal Year 2007-2016 (EIA, 2018) to be continue.........

Fig.5: Egyptian Installed Capacity of Different Energy Sources by the Fiscal Year 2015-2016 (EIA, 2018)

Egypt Energy Situation E01

Introduction

The Arab Republic of Egypt is located in North Africa and borders with Libya in the West, Sudan in the South and Palestinian territories and Israel in the East, while in the North, it is washed by the Mediterranean. Its population is mainly concentrated along the river Nile, as the rest of the country's territory is largely desert. 

Most parts of the country have a hot desert climate with extreme heat occurring during summer. An exception is the northern Mediterranean coast which receives more rainfall during winter and has a generally more moderate climate.

Fig.1: Map of Egypt showing Examples of N.G. & C.O. Pipelines, Ports, Fields..etc (EIA, 2018)

Egypt is a country with a high potential of natural resources: precious stones, natural gas, oil, coal and large reserves of fossil fuel energy sources; approximately 4189 billion barrels of oil reserves and an estimated 77200 billion cubic meters of natural gas reserves, as the reserves are in the form of both mainland and coastal deposits.

While more than 90% of the Egyptian generated electricity comes only from oil and natural gas, the major problem that Egypt encounters, especially in the energy-sector is the dynamic growth of population, which is estimated by around 1.3% per year, consequently increasing demand, which eventually fastens the rate of depleting the country's major resources.

According to the US Energy Information Administration (EIA), it is the largest non-OPEC oil producer in Africa and the third largest dry natural gas producer on the continent, following Algeria & Nigeria.

The country also represents a vital role-player in the international energy market, as a major transit route, by operating the Suez Canal and the Suez Mediterranean Pipleline (SUMED), through which the oil is shipped from the Persian Gulf to Europe and the United States.

Energy Situation

Historical Background and an Overview of the Main Energy Sources

Egypt has been known to mainly depend, in all its energy-related activities, on three major sources: oil, natural gas and the hydroelectric power generated from the large dam projects over the Nile: the High Dam, Aswan I & Aswan II.

Despite being a major producer and net exporter of oil, especially in the 1990 , when its oil production peaked, reaching approximately over 900000 bbl/day, Egypt has become a net oil importer around 2009/2010. Thus can be traced back to both economic and population accelerated growth, which accompanied the beginning of the new millennium, leading to an increase in consumption by about 3% per year, resulting in growing of demand, and falling in production, that could roughly meet consumption requirements, resulting in a significant drop in the country’s oil refinery output since 2009.

During the period of the late 1990/early 2000, Egypt has witnessed a state of proliferation of discovering and exploiting huge natural gas reserves around the country, which drove the country to emerge as a key role player in the region as a natural gas producer and exporter. Mainly, due to the same reason as in oil, consumption of natural gas has approximately increased by 7% per year during the first decade of 2000, and production has noticeably decreased by around 3% yearly during the period of 2009-2013, consequently limiting its natural gas exporting capacity to only 5% of its total production by 2013, and eventually driving the country to start signing importing agreements in the following years of 2014 and 2015.

Table.1: General Statistics on Oil & Natural Gas Situation in Egypt

	Oil	Natural Gas
Total Production	680,000 bbl/day	2 trillion cubic feet/day
Global Production-Share	0.72%	1.7%
Proven Reserves	3,900,000,000 bbl	65.3 trillion cubic feet
Global Proven Reserves-Share	0.2%	1%
% Total Domestic Consumption	41%	53%
Imports	80,000 bbl/day	To Be Updated
Exports	189,000 bbl/day	0.1 trillion cubic feet/year
Export Destinations	EU (56%), India (28%), China (13%), Others (3%)	EU (56%), India (28%), China (13%), Others (3%)

According to reports from American Security Project (ASP) and United Nations Environment Program (UNEP), Egypt has produced approximately 13.2-13.7 billion kilowatt-hours (KWh) of electricity, using hydro power in the period 2012/2013.

Hydro power accounts for about 9% of the total country’s power generation, and around 3% of the country’s total energy consumption, however, the majority of the Nile hydro power's capacity in Egypt has already been exploited and is declining.

to be continue....

DATA CENTER TYPOLOGIES

The major concern for data centers is to ensure the continuity of energy supply and improve the energy efficiency. The tier systems with different typologies contribute to improve the reliability and availability. The comparison of AC and DC energy distribution in the data center gives some guidance on the electrical configuration design.

A. Tier Classifications

             The Uptime Institute defines four tier system typologies for describing the availability of system as shown in the Figure 1. It can be seen that the difference between Tier I and Tier II is the number of generator and UPS. In Tier II, additional generators and UPS provide backup for the most critical components. The significant difference between Tier II and Tier III is the number of delivery path. In Tier III, the alternative power from a second utility provides the parallel power support for the critical IT load, in case of power failure of the primary path. However, there is no requirement to install UPS in the passive path. Therefore, Tier III system is vulnerable to utility conditions. Tier IV provides a complete redundant system by adding two active power delivery paths. It can enable dual systems to run actively in parallel. In both power paths, it contains N+1 UPS and generator sets. The comparison of performance in different Tier systems is shown in Table II. It shows that higher level of Tier system has greater system availability

Figure 1. Typologies of different Tier systems.

Table 1. Comparison of Tier systems

 B. AC and DC Energy Distribution in Data Centers 

              Typically the discussion of AC versus DC in the data center starts with efficiency. Since a data center draws a significant amount of power, a relatively small increase in efficiency can lead to a reduction in operating costs. The advantages of DC data center over AC are energy efficiency, reliability, smaller carbon footprint, lower installation and maintenance costs, scale ability, easier integration of renewable energy, utility rebates and credits, and safety. Total energy savings can reach upward of 30% for both mechanical and electrical power savings. Because of this efficiency, DC systems can use various utility rebates and credits available for corporations. There are fewer power components in a DC system, making it more reliable than an AC system. With fewer power conversions, there is also less heat to affect the electronic equipment. It is because every conversion wastes energy and produces heat. And while any single conversion may be in the mid 90 percent range, they don’t add together, they multiply. When energy to remove the heat is considered, it is only about 50% of the energy that actually gets used by the processors in the servers.

Oil Age become Green

The "Oil Age" is coming to an end; energy costs are skyrocketing and breaking one record after another. There appears to be no change in sight since energy consumption is increasing rapidly in newly industrialized countries. One further mega trend is the protection of climate and environment. It is certain that human beings have significantly contributed to the greenhouse effect. Therefore, every effort has to be done to reduce damaging greenhouse gases, especially carbon dioxide (CO2). This idea of environmental protection and the high energy costs drive more and more enterprises to reduce their energy consumption and to improve their energy efficiency.