Egypt

(updated on Aug. 2005)

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

1.1.1.  General Geographic and Climate Information

Egypt is located in the extreme northeast of Africa and consists of approximately one million square kilometers of land. The country is generally organized into four major areas, namely: Nile Valley and Delta, Western Desert, Eastern Desert, and Sinai Peninsula.

Egypt lies for the most part within the Temperate Zone, and the bio-climate varies from arid to extremely arid. The mean daily maximum temperatures in Egypt ranges from 18°C to 41°C; mean daily minimum temperature ranges from 5°C to 23°C.

The entire Egyptian Mediterranean coastal region, from Sallum in the west to Rafah in the east, shares essentially similar climate. The greater part of the spars annual rainfall is confined to a few rainstorms occurring in the mid winter months. On the rainless days, the winter climate is mostly warm, sunny and frost free. During the transitional spring and autumn months, there are few days with light rain, marked seasonal changes in temperature and, to a lesser extent, changes in humidity and cloudiness. There is no rain during the summer, and the mean maximum temperatures during this season seldom exceed 32°C

1.1.2.  Population Trends

Egypt is one of the very few developing countries where accurate demographic data exist since the year 1800 when the first census was carried out during the French Campaign. The population of Egypt at that time was about 2.5 millions. The growth of the Egyptian population according to census is shown in Table 1.1. Analysis of population growth data shown in Table 1.1, indicates that, during the period 1990 -2003 the average annual growth rate was 2.4%.

TABLE 1. POPULATION INFORMATION

1.1.3.  Economic Growth and GDP Structure

Prior to 1952, the Egyptian economy was largely based on irrigation agriculture, using water from the Nile. Industry was limited to the processing of agricultural products. In the 1960s, Egypt adopted a policy of centrally planned economy with ambitious industrialization program that came to a halt in the aftermath of the 1967 War. Towards the end of the 1980s, major re-orientation of development strategy took place, aiming at shifting from state active role to full-scale market economy. As a result, the rate of these changes, the gross domestic product (GDP) and the GDP/capita has registered sharp ups and downs. The average rate of growth was 14.6% annually during the period 1980-2001. However, during the periods 2001-2002, and 2002-2003, the real GDP annual growth rate dropped to 4.2% and 8.7% respectively.

TABLE 1.2. GROSS DOMESTIC PRODUCT (GDP)

1.1.3.  Estimated Energy Reserves

TABLE 1.3. ESTIMATED ENERGY RESERVES

1.1.4.  Energy Statistics

TABLE 1.4. ENERGY STATISTICS

1.2.  Energy Policy

The mix of the annual electrical energy generated of Egyptian Electricity Sector, is as follows:
20% from hydro power plants.
80% from thermal power plants; using heavy oil and/or natural gas as main fuel.

Due to the effect of the draught conditions existing in Africa and its impact on the hydro power potential of Egypt, a fast track crash program to construct the power generating plants Combined Cycle. These are considered an important part of the fuel conservation strategy of the electricity system.

Beginning in the 1950s, the government of Egypt has been special attention for the environmental aspects. The government has promulgated several laws and regulations concerning protection of the environment. An environmental impact assessment must be submitted to the Egyptian Environmental Affairs Agency for review before licensing the plants. In addition, air and water pollution limits that are applicable to the power plant projects are established.

In its effort to respond to a more market-based economy, the electricity sector faced challenges such as the movement towards commercialization and real competition from the power sector in the field of energy generation, and development of the globalization if electric networks.

The unified power system is currently being extended to interconnect Egypt and the Mashrek countries (Iraq, Jordan, Syria and turkey). The long term plans of interconnections include the Mediterranean ring consisting of African and European countries. The electricity sector is also concerned with increasing global and domestic pressures of environmental protection issues.

Exploration activities have increased throughout the country leading to major discoveries, especially of natural gas. A recent decision by the Egyptian cabinet to allow companies to export gas has encouraged more deals with foreign energy companies. Export of natural gas has began at July 2003.

Egypt sees natural gas as its energy source for the future .Massive discoveries of natural gas have come at time when production from maturing oil fields is declining.

Furthermore , the government is trying to discourage domestic consumption of petroleum to free up oil to generate export revenues . Oil -fired power plants have been converted to run on natural gas.

1.3.  The Electricity System

1.3.1.  Policy And Decision Making Process

The government office responsible for energy in Egypt is the organization for energy planning (OEP). The OEP plans and analyzes energy policies, evaluates primary energy resources, collects data, analyzes energy demand and supply seeks to develop technical expertise in the energy field and share that expertise with relevant parties.

Government ministries relevant to the energy sector are the ministry of petroleum and ministry of electricity and energy.

The Egyptian Environmental Affairs Agency (EEAA) manages the country's environmental protection efforts. State-owned firms control key elements of the energy sector in Egypt .The Egyptian Holding Company (EEHC) owns the country's power generation and distribution companies, while the Egyptian General Petroleum Company ( EGPC) controls the petroleum sector.

1.3.2.  Structure of Electric Power Sector

The ministry of electricity and Energy is the focal point for seven different authorities including :The Egyptian Electricity Holding Company (EEHC ) , Rural Electrification Authority (REA) , Hydro power Projects Execution Authority , Atomic Energy Authority , Nuclear Power Plants Authority (NPPA) , Nuclear Materials Authority , and new and renewable Energy Authority.

EEHC is mainly responsible for system studies and planning, Power Plants Projects.

EEHC own 14 companies for production, transmission and distribution functions.

TABLE 1.5. ELECTRICITY PRODUCTION AND CAPACITY

TABLE 1.5. ENERGY RELATED RATIOS

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and Current Nuclear Power Organizational Structure

2.1.1.  Overview

The reasons which led the country to promote launching a nuclear power program were basically the following:

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 known national primary energy resources to supply on a medium and long term the increasing demand for energy and electricity; as well as limited potable water resources, which will require the utilization of energy intensive 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.

These reasons have not only retained their validity, but have been reinforced by the developments which have been taking place. Currently, energy and electricity demand continues to grow faster than population, and it is recognized that no economic development can be achieved without satisfying this demand.

In compliance with its mission and functions assigned by the Government of Egypt, the Nuclear Power Plants Authority (NPPA) has performed a Feasibility Study for the first Nuclear Power Plant (NPP) to be implemented in Egypt for the cogeneration of electricity and desalted water. The feasibility study was carried out with technical assistance from the IAEA during the period 1999-2001 and updated in 2003.

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

2.1.2.  Current organizational chart

2.7.  International Co-operation and Initiatives

2.7.1.  Co-operation with IAEA

Comparative assessment of strategies and options for electricity generation in Egypt up to 2000 (EGY/0/016): to determine the optimal electricity generation mix up to the year 2020, including nuclear and renewable energies.

Nuclear power and desalination feasibility study (EGY/4/040): to provide the decision makers with all the necessary information regarding the technical and economical feasibility, and viability of the nuclear option for electricity generation and seawater desalination.

Experimental investigation of feed water preheating on the performance of RO membranes (RO/10244): short-term to study performance characteristics of three commercial SWRO membranes over the range of allowed temperatures and pressures. Long-term to study the effect of continuous operation at maximum feed water temperature and pressure on RO membrane life.

Development of an integrated economic and financial assessment tool for power/desalination systems (EGY-11973/RO): to increase the computational capability and flexibility of DEEP, and development water cost module and additional desalination and power models.

Simulation of nuclear desalination plant (EGY/4/046): to investigation of DABAA basic simulator and potential for upgrading- to development of desalination mathematical model- programming using APROS and documentation.

Human resources development for nuclear power plant project preparation and project management (EGY/4/045, and EGY/4/047): to transfer knowledge, information and experience related to the development of human resources for planning and implementation a nuclear project for electricity generation and water desalination.

Establishment of a Quality Assurance program for NPPA (EGY/4/042): to finalize NPPA QA manual up to the international standards, and to enable NPPA staff to plan for full implementation of QA program.

Recently IAEA and NPPA lunching a new TCP (EGY /0/049) to study and evaluate the Safety and Environmental Assessment for El Dabaa NPP site (2005 - 2007)

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Main National Laws and Regulations in Nuclear Power

Egypt started its nuclear program in the mid fifties. The first step was, the presidential decree setting up "The Atomic Energy Commission (AEC)". and determining its competencies to prepare, implement, and coordinate all programs and projects related with atomic energy.

In this legal form the AEC proceeded with its work until it was replaced by Presidential Decree No. 288 for the year 1957 through "The Atomic Energy Establishment - AEE" (which later became the Atomic Energy Authority - AEA). The sub-item (h) of the Second Article of this Presidential Decree empowered the AEE to take the proper security measures needed for protection against the danger of nuclear radiation, cure those affected by it, issue provisions and instructions and propose the necessary legislation.

In 1960, the law No. 59 organizing the use of ionizing radiation and protection against it was issued, it states that "The AEE and the Minister of Health are in charge of executing, each in its field of competency". The second paragraph of the Article 3 of this law states that "The AEE shall regulate work in open isotopes and reactors, and granting the necessary licenses to regulate them."

The Minister of Electricity and Energy issued decree 359 of 22 August 1981 establishing a committee whose function was to draw up draft laws regulating the use of nuclear power for peaceful purposes, and in this committee, all the competent bodies concerned with nuclear power matters in Egypt were represented. The committee completed its reports in January 1982 and appended to it a draft law on a national organ for nuclear protection and security, and civil liability for nuclear damage.

The Draft Law on Nuclear Control and Safety, and Civil Responsibility on Nuclear Damage states that: A general authority is to be established named "The National Authority for Nuclear Control and Safety". This authority will be responsible for protecting and safeguarding individuals, establishments and environment when selecting a location, constructing, operating, suspending and terminating the operation of nuclear establishments.

The Chairman of the AEA issued decree No. 15 of 1st of August 1982, establishing Nuclear safety Committee within the AEA (later The National Center for Nuclear Safety and Radiation Control, (NCNSRC) which was established by a presidential decree No. 47 in 1991 to practice the regulatory role in the nuclear field on behalf of the Atomic Energy Authority.

The NCNSRC having the legal authority for conducting the licensing process, for issuing licenses and thereby for regulating nuclear power plant siting, design, construction, commissioning, operation and decommissioning in Egypt.

3.2.  Safety Authority and Licensing Process

The Ministry of Electricity and Energy coordinate the uses of the nuclear energy in Egypt. Therefore, the organizations concerned with the NPP licensing, i.e. AEA (the Licensing Competent Authority, and NPPA (Utility) are under the jurisprudence of the Minister of Electricity. In addition, the NCNSRC comprises one department of AEA. Throughout the licensing process, the utility submits the required application and the relevant documents for each phase of licensing. The NCNSRC evaluates and reviews the safety documents and makes recommendation to the AEA' board of directors. Based on these recommendations, the AEA' board of directors issues the licenses for NPP.

Furthermore, the Environmental Affairs Agency, which belongs to the Minister of Environment, regulates the environmental aspects relevant to NPP impacts during the licensing process.

The Egyptian organizations involved in the utilizing nuclear energy, especially for the electricity generation and seawater desalination, are presented in Figure. The figure shows the interrelation between these organizations with respect to licensing procedures for nuclear power plants in Egypt.

The AEA has also issued the following basic safety rules, which establishes nuclear regulations, safety criteria, codes, rules and standards to be used for nuclear power plants to be established in Egypt:

• The IAEA Nuclear Safety Standards (NUSS) shall be a main source of the Egyptian nuclear regulations, safety criteria, codes, rules and standards. NUSS shall also be used as a frame of reference for the review and assessment of safety analysis reports as well as other safety-related documents for nuclear power plants to be established in Egypt.
• The competent authority may also accept the safety criteria, codes, rules and standards used in the vendor country at the time of contract signing as well as the latest versions applicable during the time of design and construction, to the extent that they are not incompatible with NUSS. The latest level of practical experience in the vendor country should also be adequately considered.
• The nuclear power plant(s) to be established in Egypt, or any subsequent modifications concerning their design or construction, shall comply with the above accepted safety criteria, codes, rules and standards. Evidence of compliance shall be presented. Reference plant(s) recently licensed in the vendor country or in one of the IAEA member states is considered as good means to demonstrate licensee ability.
• The proposed plant should be licensable in the vendor's country.

Licensing stages and required information and documentation

The licensing procedures, as stipulated by AEA, are divided into 5 stages:

1. Site approval
2. Construction permit
3. Fuel loading and commissioning permit
4. Operating license
5. Decommissioning license

Appendix 1

TREATIES, AGREEMENTS, COMMITMENTS AND INITIATIVES

Aiming at the implementation of nuclear power reactors for the purpose of electricity generation and desalination, Egypt concluded several international, multilateral and bilateral Treaties, Agreements and Commitments. These would provide Egypt with the necessary international support for co-operation in the peaceful uses of nuclear energy.

First of all, Egypt signed and ratified the Treaty on Non Proliferation of Nuclear Weapons (NPT) and concluded with the International Atomic Energy Agency (IAEA) an Agreement for the application of safeguards in connection with the NPT.

Egypt also signed and ratified several multilateral Conventions, which regulate the applications of nuclear energy in the international frame. In that regard, Egypt ratified the Vienna Convention on Civil Liability and the Joint Protocol Relating to the Application of the Vienna Convention and Paris Convention. In addition, Egypt signed and ratified the Convention on Early Notification of a Nuclear Accident, and the Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency. It signed the Convention on Nuclear Safety.

Another important step for preparation to implement nuclear power reactors in Egypt was the conclusion of several bilateral agreements with some nuclear exporting countries on co-operation in the peaceful uses of nuclear energy. These countries are France, United States of America, Germany, Canada, Australia and the Republic of Korea.

Following the co-operation agreement with the Republic of Korea, a Joint- Inter Ministerial Declaration of Intent on Co-operation in the Field of Peaceful Uses of Nuclear Energy was concluded in 1999.

Furthermore, Egypt had singed, in 1981, Memorandums of Understanding for co-operation in the field of nuclear energy with both the United Kingdom and Sweden.

The initiative of president Mohamed Hosni Mubarak

On 8 April 1990 president Mubarak declared an initiative to set up a Weapons of Mass Destruction Free Zone (WMDFZ) in the Middle East, the basic features of the declaration were:

1. to ban WMD in the middle east, whether nuclear, biological, or chemical.
2. All the countries of the region should make equal and mutual pledges in that regard.
3. An appropriate measures and procedures to ensure the full compliance of all countries of the region should be taken.

The treaty of Plindaba

In 1995 experts from the Organization of African Unity (OAU) elaborated a draft treaty on the African Nuclear Weapon Free Zone, called (The Treaty of Plindaba) on 11 April 1996, it was opened for signature.

SUMMARY OF THE EGYPT'S INTERNATIONAL, MULTILATERAL AND BILATERAL TREATIES, AGREEMENTS AND COMMITMENTS

Appendix 2

Egyptian nuclear Organizations

1- Atomic Energy Authority (AEA)

• Nuclear Research Center (NRC)
• The National Center for Radiation Research and Technology (NCRRT)
• The National Center for Nuclear Safety and Radiation Control (NCNSRC)

2- Nuclear Materials Authority (NMA)

3- Nuclear Power Plants Authority (NPPA)