Cost-Benefit Analysis of Energy Efficiency Measures in Egypt

Egypt, Cairo, cityscape, view from Cairo Citadel

Unstable fuel availability and grid inefficiency cause frequent blackouts in Egypt. A mere increase in the electricity generation capacity cannot satisfy the increasing electricity demand. In this context, energy efficiency is becoming increasingly important in Egypt. The Egyptian government already recognizes the important role of the efficient use of energy. In order to reduce the national budget deficit and prevent blackouts, the government therefore decided several years ago to completely phase out its energy subsidies by 2021/22, while at the same time increase electricity prices annually.

In 2016, adelphi prepared a feasibility study on behalf of KfW for an energy efficiency programme at Egyptian universities. The study included information on the legal and policy framework and the structure and function of the partner institution SCU (Supreme Council of Universities), a building catalogue, a re-evaluation of eligible energy measures, and a re-design of the programme.

In addition to this study, KfW commissioned adelphi to carry out a cost-benefit analysis to investigate the positive effects of energy efficiency in general and for the EE project in universities. The report shall also serve as a solid basis on Egyptian energy market data for future KfW projects. Therefore, adelphi particularly prepared analyses on electricity price development, electricity demand and the subsidy system in Egypt, and calculated various energy-saving scenarios.