Shift to oversupply drives PPA price pressure in Egypt
The industry has made a dramatic shift from severe undersupply to generation capacity outstripping supply, but African Energy Live Data’s analysis shows the underlying structure of Egyptian power generation will change only slowly in the period to 2022 and beyond, writes John Hamilton
The questions facing electricity sector strategists and their international and local partners have changed dramatically as Egypt has shifted from severe undersupply to oversupply. However, analysis of installed plants and the project pipeline to 2022 and beyond captured by African Energy Live Data suggests the underlying structure of power generation – dominated by state-owned gas-fired plants – will change only slowly, despite the huge amount of extra capacity being added to the system.
According to Live Data’s snapshot of the pipeline as it stands in October, installed capacity will increase from 46.6GW at end-2017 to 69.3GW in 2022. Some 14 projects totalling 15.9GW are under construction and a further 67 projects totalling 34GW are planned, although inevitably not all will be developed.