With renewable energy reform topping Egypt’s Vision 2030 targets, studies such as these are vital to building medium- and long-term strategies for the energy sector
Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, announced today that it has signed a tripartite protocol with Egypt’s Ministry of Planning and Nile University’s Innovation, Entrepreneurship, and Competitiveness Center (IECC) to co-finance a study that is intended to pave the way for a comprehensive economic, social, and institutional reform plan to develop Egypt’s energy sector.
The protocol was co-signed by Head of Financial and Administrative Affairs Osama Mady on behalf of the ministry, Director of IECC Heba Labib, and Qalaa Chief Marketing & Sustainability Officer Ghada Hammouda. Advisor to the Minister of Planning for Economic Affairs Nada Massoud was also in attendance.
On the occasion, Minister of Planning Hala El Said said, “The signing is part of the ministry’s efforts to assess the future of the energy sector in Egypt through 2030 given technological innovations and their effects on energy supply and demand and the eventual consequences on the sustainable development of the Egyptian economy as a whole.”
“Renewable energy is a top priority under Egypt Vision 2030. In that regard, we are developing a comprehensive medium- to long-term strategy for the energy sector to achieve energy security for Egypt. We aim to increase the sector’s efficiency by increasing participation from the private sector to develop the infrastructure for energy exports, especially electricity, while simultaneously enhancing the efficiency of renewable energy development,” she said.
Egypt Vison 2030 aims to reduce waste and pollution from energy production by diversifying the country’s energy mix. It aims to increase the share of energy production from clean and renewable sources, upping solar contribution to 16% from 8% and wind to 14% from 1%.
“We are proud to cooperate with the ministry on a study that will contribute to developing and securing the future of our country’s energy sector,” said Qalaa Founder and Chairman Ahmed Heikal. “Qalaa is invested in developing the energy sector as evidenced by its flagship US$4.3 billion Egyptian Refinery Company (ERC), one of the largest public-private partnerships in Egypt. In addition, we are developing a 50 MW solar power plant in Benban through our subsidiary TAQA Arabia. We hope to continue our efforts to build strategic partnerships between the public and private sectors to turn Egypt into a regional energy hub.”
Qalaa Co-Founder and Managing Director Hisham El-Khazindar also expressed how important Qalaa’s participation is in the study, which will be instrumental in advancing the renewables space in the coming period. “Qalaa made a conscious decision several years ago to shift its investments toward more strategic sectors such energy, with a special focus on renewables and fuel alternatives. In doing so, we are supporting Egypt’s transition toward increased dependency on renewable energy sources,” he said.
President of Nile University Tarek Khalil underscored his support of the ministry’s efforts to carry out Egypt Vision 2030 as it does its part to help Egypt achieve sustainable development. “The IECC is proud to have been tasked with preparing the study to identify the best utilization for technological applications in the energy sector, which will help further aid Egypt’s social and economic development going forward,” he said.
“The government aims over 2018-2022 to establish a more ideal energy mix to generate electricity from traditional resources, increase the contribution of renewable resources, and add nuclear and coal resources in the process, as evidenced by the Dabaa Nuclear Power Plant, which is expected to produce 4,800 MW of energy,” said Massoud. “We also aim to enhance our pumping and storage technology, as well as amend the frameworks governing the Renewable Energy Authority to allow further participation from the private sector in production and operations.”
For her part, Hammouda affirmed Qalaa’s belief in responsible investing and supporting cooperation between various stakeholders to achieve sustainable development. “Qalaa prides itself on its sustainable development accomplishments across Egypt and Africa, which would have not come to fruition without our successful partnerships with governments, NGOs, and various international organizations,” she said. “Participating in the tripartite protocol is part and parcel of our commitment to achieve the UN’s 7th Sustainable Development Goal (SDG): Ensuring access to affordable, reliable, sustainable and modern energy for all.”
“The center’s main competency is in evaluating industries and managing related technological applications while developing models and solutions to utilize these technologies,” said Labib. She went on to add that the IECC will research several scenarios for expected demographic trends in Egypt through 2030 and the possible energy usage patterns associated with them. It will also extract the results of the study into a policy briefing that will help the Ministry of Planning draft recommendations for achieving Egypt Vision 2030 while coordinating efforts across all concerned government entities. The end goal will be to establish medium- to long-term policies that improve the quality of life for citizens while enabling small- and medium-sized enterprises to contribute to job growth, strengthen the energy value chain, support exports, achieve environmental sustainability, and streamline government expenditures.
Another goal of the study is to provide a policy paper for an energy sector reform program covering economic, social, and institutional reforms with a viable timeframe, a set budget, and support from regional and global partners. The policy paper will have several objectives, including an assessment of the status quo through the analysis of the 2017 census and other available sources; the preparation of several quantitative indicators for energy supply and demand and the level of public expenditures with respect to changing social, economic, and technical dynamics under various scenarios; and recommendations for supporting SME involvement in the energy sector as well as general policies to further develop the sector, with a focus on renewable energy.
Under the protocol, the ministry will provide the IECC with adequate data from the 2017 census as well as previous relevant data from the Central Authority for Public Mobilization and Statistics (CAPMAS) and other official entities involved with the energy sector. The ministry will also provide any studies carried out by international organizations that are of relevance to the study.
The IECC will conduct research on the future of Egypt’s energy sector by collecting and analyzing available data with all entities involved in industry and align it with international indicators. Furthermore, the center will look into future trends on energy demand as well as new innovations in generating, transporting, and storing energy. Several scenarios will be assessed regarding energy demand in Egypt with respect to economic, social, and technical developments in the renewable energy sector. The center will also provide research on the required investments, financing sources, and social and economic returns across each scenario in addition to providing policies and mechanisms to develop the energy market and create jobs.
Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, Mining, and Printing & Packaging. To learn more, please visit qalaaholdings.com.
Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Qalaa Holdings may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.
For more information, please contact:
Ms. Ghada Hammouda
Chief Marketing and Sustainability Officer
Citadel Capital (S.A.E.)
Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002