Egyptian strategy covers the diversification of the energy mix including renewable and nuclear energies, higher energy efficiency, a reform of the electricity and the oil and natural gas markets, and reduction of energy subsidies. It is based on meeting the ever increasing demand on electricity with a high degree of reliability and sustainability in addition to defining follow up energy efficiency programmes in the electricity sector.

The diversification of the energy mix in the electricity sector aims to reduce the consumption of fossil fuels, and as a result the production of greenhouse gases, while increasing the share of renewable energy sources and giving a new impetus to the nuclear electricity programme suspended in the 1980s.

In February 2008, the government set an ambitious target of 20% renewable energy in electricity production by 2020, a figure which includes existing large hydro power plants.The government launched a nuclear electricity plan in 2007; and the steps for its implementation are ongoing.

The government of Egypt has given special attention to environmental aspects of its energy policy, and has promulgated several laws and regulations concerning protection of the environment. Egypt issued the Environmental law in the year 1994. Accordingly the Egyptian Environmental Affairs Agency (EEAA) was created with the principal functions of development and monitoring of projects and the implementation of pilot projects. Environmental impact assessment must be submitted to EEAA for review and approval before licensing the plants. In addition, the air and water pollution limits applicable to the power plant projects are established.

At present, most of Egypt's coal reserves are located in Sinai, with a total reserve potential of 21 million tonnes. Egypt is an important non-OPEC energy producer. It has the sixth largest proved oil reserves in Africa. As of 2013, Egypt's proven oil reserves were estimated at 500 million tonnes; the country's reserves of natural gas are estimated at about 1.8 trillion cubic metres, and are the third largest in Africa. Egypt is currently considering the use of nuclear energy; in 2010 the country announced it will revive its civilian nuclear power programme, and plans to build a nuclear power station at El Dabaa which will be constructed with participation from foreign vendors.

Egypt has high solar availability and a high potential for wind energy, especially in the Red Sea coast area. Egypt approved a strategy aimed at increasing the contribution of renewable energy to 20% of total energy generated by 2020, where hydro power would represent 6%, wind 12%, and 2% would be provided by other renewable energy resources, especially solar energy.

Table 1. ESTIMATED AVAILABLE ENERGY SOURCES

* Solid, Liquid: Million tons; Gas: Trillion m³; Uranium: Metric tons; Hydro, Renewable: GW

(1) Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(2) Crude oil and natural gas liquids (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(3) Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(4) Reasonably Assured Resources (RAR) under < USD 130/kgU

(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology Energy Statistics.

(6) Other Renewable includes only the wind and the solar power.

Sources:

BP-Statistical_Review_of_world_energy_2014_workbook

Egyptian information and decision support center, Egypt information portal, http://www.eip.gov.eg/

Egyptian Ministry of Electricity and Renewable Energy web.

NA :Data Not Available.

The total primary energy production was about 60.5 Million tonnes oil equivalent (MTOE) in 2000, increased to about 90 MTOE in 2013 (Table 2).

While natural gas production is rising steadily, its production has jumped from 18.9 Million tonnes oil equivalent in 2000 to 50.5 in 2013, the production of petroleum products is declining as crude oil production has reduced by about 1% yearly; whereas coal and peat show a more static development on a low level. Most of the available hydropower energy resources in Egypt are being exploited; the share of hydropower in primary energy production is limited to 3.3% and reached 13.121 TWh in 2013. Shares of renewable energies have not increased to a significant extent and continue to play a minor role in the energy supply structure.

Total final energy consumption was 49.66 MTOE in 2000 and this figure increased to 86.75 MTOE in 2013 (representing a growth rate of 4.38%). Evolution of energy use shows that consumption of petroleum products has increased at a rate of about 2% per year. The use of natural gas has increased by about 8% per annum.

Table 2. ENERGY STATISTICS (Exajoule)

Sources:

Energy Information Administration (EIA) Energy Data and Analysis for Egypt.htm.

Egyptian Ministry of Petroleum web site.

BP-Statistical_Review_of_world_energy_2014_workbook

NA :Data Not Available.

The principal sources of policy are: Ministry of Electricity and Renewable Energy (MOERE), which holds a monopoly over the distribution, transmission and generation of electricity and the Supreme Council for Energy (SCE), the latter of which reports directly to the President. The Electric Utility and Consumer Protection Agency (EUCPA) is the industry watchdog and is responsible for licensing and sector monitoring. While the Nuclear and Radiological Regulatory Authority (NRRA) is the authority responsible for conducting the regulatory tasks on the nuclear and radiation facilities, activities and practices.

MOERE is the focal point for five different authorities and one holding company affiliated to the Ministry as shown in Figure 1.

Figure 1: Structure of Egyptian Electric Power Sector

Egypt held approximately 31 GWe of installed electric capacities as of Dec. 2013. Figure 2. shows the distribution of installed capacities by source: distribution is roughly 89% from thermal and 9% from hydro sources which are almost fully utilized. Wind installed capacity represents about 2% of the total.

Figure 2: Total Installed Capacity of 31 GWe in 2013

More than 99% of the Egyptian population has access to electricity; while the number of customers reached 29.7 million in FY 2012/2013.

The Egyptian Electricity Holding Company (EEHC) is mainly responsible for system studies and planning for power plants and grid expansion projects. EEHC has 16 companies: 6 for production, 1 for transmission, and 9 for distribution functions. There is a new electricity law under preparation. According to the new law the drive mechanism of the system will be the Transmission System Operator (TSO). The transmission company will become an independent company, and the restructuring of the EEHC will also be applied. The role of the electricity regulator will be strengthened, and the market mechanism will move forward.

Between 2000 and 2013, the total installed capacity increased to about 5.54%, mainly through the added combined cycle and wind power installed capacity. In June 2013, the total installed capacity reached 30 803 MW. Approximately 165 TWh of electricity were generated to ensure reliability of electricity supply to customers. During this period the peak load reached 27000 MW and electricity consumption per capita was 1657 kWh.

Total consumption of electricity increased from about 64 TWh in 2000 to 141 TWh in 2013, having an average annual growth rate of 6.2%.

Table 3. ELECTRICITY PRODUCTION, CONSUMPTION AND CAPACITY

Sources: Egyptian Ministry of Electricity and Renewable Energy web

Table 4. ENERGY RELATED RATIOS

Sources: Egyptian Ministry of Electricity and Renewable Energy web

The factors which led the country to promote launching a nuclear power programme are as follows:

1. Steadily increasing demand for energy and electricity, caused by population growth, urbanization, industrialization, and the desire and intention to improve the conditions and the standard of living of the people;

2. Inadequate and insufficient proved national primary energy resources to supply, the increasing demand for energy and electricity on a medium and long term basis; as well as limited potable water resources, which will require the utilization of energy desalination technology particularly in remote areas;

3. Perception of nuclear power as a convenient, economically competitive and viable source of energy which, if introduced in the country, would not only complement the traditional energy sources, but would also promote technological development and serve as an incentive for social and economic progress;

4. Nuclear power is the best solution to turn the tide on greenhouse gas.

These reasons have not only retained their validity, but have been reinforced by the developments, which have been taking place.

In compliance with its mission and with the functions assigned by the Government of Egypt, the Nuclear Power Plants Authority (NPPA) has performed a pre-feasibility study for the first Nuclear Power Plant (NPP) to be implemented for the cogeneration of electricity and desalinated water. This study was carried out with technical support from the International Atomic Energy Agency (IAEA) during the period 1999-2001 and updated in 2005.

The Egyptian nuclear programme started in 1955 and developed through the following milestones:

Figure 3: Nuclear organizations in Egypt

Not applicable.

Not applicable.

In October 2007, the President announced the strategic decision to start a programme to construct a number of nuclear power plants for electricity generation. The elements of this strategic decision include:

• The implementation of the necessary steps to construct the first Nuclear Power Plant for electricity generation at El-Dabaa; and

• Commencement of legislative and structural procedures related to the energy sector in general, and the mechanisms and bodies specific to nuclear energy in particular, including:

• Re-structuring the Supreme Council for Peaceful Uses of Nuclear Energy;

• Drafting the “nuclear law” to regulate the relationship between the various authorities involved in or related to peaceful uses of nuclear energy;

• Re-structuring the existing concerned agencies and authorities;

• Enhancing the nuclear regulatory body and ensuring its independence.

Table 6. PLANNED NUCLEAR POWER PLANTS

* Pressurized Water Reactor

• Nuclear Power Plants Authority (NPPA) is the sole utility in Egypt responsible for project management of the construction and operation of nuclear power plants for electricity generation and seawater desalination.

• Nuclear Material Authority (NMA) is responsible for exploring the potential of the nuclear ore.

• Nuclear and Radiation Control Authority (NRRA) is responsible for regulation and control of safety, security and nuclear safeguards, as well as the review and approval (licensing) process.

• Implementation of a sound and successful financing plan is in progress. A strong public and government policy in support of nuclear power has been created through activating the role of the Supreme Council for the Peaceful Purposes of Nuclear Energy.

• Developing and implementing all the necessary financial plans (including Waste and Decommissioning) is part of the scope of services of the project consultant.

• The electricity sector finances most of its projects through the international financial institutions, the regional fund and banks, and local resources.

• In the 1980s NPPA in cooperation with the EEHC carried out a technical study by Swedpower to investigate the interconnection of the first NPP with the Egyptian grid. The grid capacity was less than 15 GWe and the new nuclear unit is likely to be the largest unit on the system (1 GWe).

• The outcome of the study indicated that with the planned expansion over a period of 15 years the grid can accommodate 4 nuclear units of 1GW each at the El Dabaa site without serious implications.

• Currently the installed capacity is more than double, so no interconnection problems are expected. A detailed study will take place during the project negotiation phase.

• The El Dabaa site is a coastal site on the Mediterranean Sea (west of Alexandria) which is characterized by low seismic activity.

• The site studies and investigations were performed according to the French regulations and practices.

• Nuclear Power Plants Authority (NPPA) completed the required site permit application and submitted it to the regulatory body, which approves the site in principle and asks for the approval of an environmental impact report.

The main Research and Development organization in Egypt is the Egyptian Atomic Energy Authority (EAEA), which comprises three research centers as indicated in Appendix 2.

Its mandate is to achieve the maximum utilization of the peaceful uses of the atomic energy for the welfare of the Egyptian people from the outset. This covers the fields of health, agriculture, food, industry, environment, and water resources.

Major Research and Development facilities at the EAEA include:

• Two Research Reactors;

• Fuel Manufacturing Plant devoted for the manufacture of fuel for the second research reactor;

• The Radioisotope Production Facility;

• Two Cobalt's radiation facilities;

• Two accelerators;

• Liquid Radwaste treatment facility.

Not applicable

In 2011 Egypt joined the International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO), and is participating in the International Nuclear Fuel Cycle Association (INFCA) as an observer.

Under the framework of technical cooperation programmes Egypt and IAEA elaborated an integrated operational plan for the implementation of Technical Cooperation projects, identifying experts, tasks, and workshops required by the implementation of the project. The plan included the following areas: project management feasibility study; siting; human resources development; and nuclear security and safety.

NRRA has the legal authority to conduct regulatory tasks on the nuclear and radiation facilities, activities and practices, including safety, security and nuclear safeguards.

Upon submitting the required application for granting a licence by the licensee (NPPA) and throughout the licensing process, NRRA's staff will review and assess the application and its relevant safety reports for its completeness and adequacy for the licensing conditions and will make a recommendation to NRRA board of directors who will issue the licences. Figure 4 presents the organizations involved in the licensing process of NPPs, which also includes the governmental environmental entities to regulate the environmental aspects relevant to NPP impacts during the licensing process.

Fig. 4 Licensing Procedures for Nuclear Power Plants in Egypt

NRRA has adopted basic safety rules based upon IAEA Nuclear Safety Standards (NUSS), which establish nuclear regulations, safety criteria, codes, rules and standards required for NPPs. NRRA has made the condition that the proposed plant should be licensable in the vendor's country.

The licensing procedures are divided in to 6 stages:

• Site permit;

• Construction permit;

• Pre-operation testing permit;

• Fuel loading and approach to criticality permit;

• Operating licence;

• Decommissioning licence.