President Abdel Fattah El-Sisi affirmed that the State bears the majority of the cost of the actual energy provided, particularly in light of soaring global energy prices, stressing the necessity for the public to be fully cognizant of all aspects of this sector. He noted, for example, that energy auctions for the highest prices take from five to seven years to bear fruit.
The President explained that the limited resources available to the State frequently necessitate borrowing to ensure the continuity of energy services for both citizens and the industrial sector. He emphasized the importance of explaining the true context of the challenges facing the Egyptian State, calling upon the Egyptian people to stand by their country and to continue working and producing to overcome all such challenges.
This came during President Abdel Fattah El-Sisi's participation today in a panel discussion entitled “The Journey of Egyptian Energy… National Achievements and Future Prospects,” held within the framework of the fourth day of the Egypt 2026 Forum, in the presence of Prime Minister Dr. Mostafa Madbouly.
The session was attended by Ahmed Kouchouk, Minister of Finance; Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy; Engineer Karim Badawi, Minister of Petroleum and Mineral Resources; in addition to Engineer Mohamed Shoeib, energy expert and former Chairman of the Egyptian Natural Gas Holding Company (EGAS); Engineer Khaled Abu Bakr, Chairman of TAQA Arabia and Vice Chairman of the International Gas Union; and Dr. Moataz Bellah Soliman, Professor at the Institute of Graduate Studies and Research at the University of Alexandria.
The Official Spokesperson for the Presidency stated that the session reviewed the trajectory of work in the energy sector over past years and the achievements realized, including the enhancement and strengthening of the national electricity transmission grid to be capable of absorbing capacities generated from renewable energy and supplying developmental projects, as well as reinforcing and strengthening electricity distribution networks, alongside the State's success in halting the decline of natural gas production, restoring growth, securing the requirements of all state sectors, and enhancing liquefied natural gas (LNG) reception capabilities.
The session also addressed existing related challenges, including global and regional geopolitical disruptions and supply chain disruptions, as well as the measures taken by the State to mitigate the repercussions of these challenges. During the session, a film was also screened featuring citizens' visions and proposals regarding Egypt's energy sector.
The Official Spokesperson added that the President delivered an intervention pointing out that the objective of the forum is to explain the facts of the matter to citizens, including the challenges facing the State in the energy sector, amid the State's keenness to ensure the continuous availability of all means of energy despite the challenges. He noted that since 2014, the State has been keen to adopt a plan to address the energy crisis witnessed by Egypt during 2012 and 2013, and that the fundamental challenge in this regard was the volume and source of financing.
In this regard, he noted that plans were made to establish comprehensive energy infrastructure in Egypt, which would also rely on new and renewable energy sources.
The President emphasized the necessity of recognizing the numerous elements that must be available to construct power generation plants—whether fossil-fuel-based or through new and renewable energy—in addition to the cost of establishing the energy distribution network following the construction of the power plants, as well as the cost of control and distribution stations, taking into account other challenges associated with international geopolitical conditions.
The State is Keen to Cooperate with the Private Sector to Continue Developing the Energy Sector
The President stressed that the State is keen to continue cooperating with the private sector to further develop the energy sector, pointing out in this context the Egyptian State's keenness to settle all dues of foreign partners, which was indeed achieved in June 2016 by reducing all such dues to zero.
Minister of Finance: Government Support Amounts to EGP 840 Billion and Approaches One Trillion Pounds with the Addition of Loan Expenses
Regarding the financial support provided by the government across all fields, the Minister of Finance indicated that in this fiscal year it amounts to EGP 840 billion, in addition to related loan expenses which reach approximately an additional 20%, effectively bringing the total value of support to approximately one trillion pounds.
In this context, the Prime Minister pointed out that the State budget for the fiscal year was formulated on the basis of USD 75 as the import price for a barrel of petroleum; however, current geopolitical conditions have resulted in the price of a barrel of petroleum reaching USD 110. All of these are burdens resulting from circumstances beyond the State's control, which simultaneously must be addressed. Consequently, the State faces one of three options: either passing these price differentials on to citizens; the State bearing these differentials, taking into account that the State does not possess the necessary resources for that; or the government resorting to borrowing to pay for petroleum import requirements, a matter that is criticized by some who raise questions regarding the increase in the volume of the State's debts.
Prime Minister: We Seek to Reach 50% Reliance on New and Renewable Energy by 2030
Within this framework, Dr. Mostafa Madbouly affirmed that the State is working to the utmost extent possible to implement new and renewable energy and create a mix in energy uses, noting that the target is to reach a 50% reliance rate on new and renewable energy by 2030.
