Electricity in Egypt 20201

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Electricity in Egypt

Introduction
• The Egyptian Electricity Holding Company (EEHC) and its affiliated
companies are responsible – by law- to provide continuous and safe
supply of electricity to all types of consumers on economic bases and
according to international performance standards taking into
consideration all the environmental social, and economic determinants.

• During the last 17 years (2002-2019), several achievements were made


by the company can be summarized as follows:

– Increase in peak load from 13326 MW to 31400 MW and energy


generated from about 83 TWh to 199.8 TWh.
– Increase in the number of customers from 18.3 million customers to
36.4 million customers.
– Increase of the consumption per capita from 1350 Kwh to 1960 kWh.
– Reduction of the average fuel consumption rate for thermal power
plants from 220.7gm/kwh gen. to 189.6 gm/kwh gen.
Introduction

– Reduction of network losses from 13.48 % to 10.79%.


– The average availability of power plants reached about 88% due to
the execution of maintenance program according to the industrial
code.
– The optimum use of all available resources especially the use of
natural gas in thermal power plants in coordination with petroleum
sector and the renewable energy ( wind- solar – hydro) in
cooperation with other power sector authorities.
– Provide electricity supply services to all consumers with high quality
according to technical standards.
– Development of customer service centers in order to facilitate,
improve and modernize the services provided to the customers.
– Reinforcement of the interconnection projects with neighboring
countries.
Introduction
• One of the EEHC major activities is future planning to meet
the forecasted growth rate of demand by optimizing the use
of all available energy resources and investments.

• EEHC produces high accuracy level of forecast using long


past period of historical data and the most recent
international software models for generation, transmission
and distribution planning.
The 7th Five-Year Plan (2012-2017):
• The Electricity Sector adopted on 20/03/2013 the 7th five-year plan
(2012-2017) for the construction of thermal power plants projects
aiming to add generation capacities of 13200 MW.
• However, during projects implementation, the Sector confronted
multiple challenges such as the rise in peak load at a high rate of 7% in
2014/2015 compared to 2013/2014, as well as the delay in
interconnecting some power plants beyond their scheduled timeline
such as Dairout and Helwan South Combined Cycle Power Plants, in
addition to the lack of natural gas supplies which necessitated
introducing some modifications to the plan to overcome these
challenges, as follows:
The 7th Five-Year Plan (2012-2017):
• Fast-Track Plan for Summer 2015:
– To meet the load demands of Summer 2015, a fast-track plan has been
implemented to add (52) gas units with a total capacity of 3636 MW at an
investment cost totaling US$ 2.7 billion, of which (20) units have been
installed and interconnected to the 66/11 KV and 66/22 KV substations to
reduce network losses.
– The fast-track plan projects have been completely implemented and
interconnected to the unified grid in a record time that helped stopping
load-shedding to customers and improving voltages during Summer 2015
and till now.
The 7th Five-Year Plan (2012-2017):
• Siemens Projects:
– Contracts have been signed with Siemens AG and its local partners for the
execution of (3) combined-cycle power plant projects at Burullus, Beni Suef
and the New Capital sites with a total installed capacity of 14400 MW and
an investment cost of US$ 6.9 billion, using the exchange rates prevailing at
time of contracting (EUR 6 billion for the plants construction in addition to
the cost of the 3 sites preparation of about EUR 65.3 million plus EGP 2
billion), through the (EPC + Finance) scheme.
– Contracting for the conversion of some gas units to combined cycle
operation without use of additional fuel, aiming at decreasing the rate of
fuel consumption and improving the operation efficiency of power plants.
– Postponing the implementation of Dairut Combined Cycle Power Plant
project with a total capacity of 2250 MW under BOO scheme to be executed
under the 9th five-year plan (2022-2027).
The 7th Five-Year Plan (2012-2017):
• Considering the foregoing, the total added capacities under
the 7th five-year plan (2012-2017) as modified reached
27’401 MW with a capital investment cost of US$ 17 Billion
implemented by the Electricity Sector and funded by soft
loans from Arab and International financing institutions in
addition to the implementation of a part of the plan under
(EPC+ Finance) scheme.
• A part of the plan projects amounting to 25’451 MW has
been operated by the end of 2018/2019.
• It is planned to operate 650 MW during the year
2019/2020.
• Another 1300 MW is targeted to be operated during the
year 2020/2021.
A Glance on Technical Achievements in 2016/2017

• In view of the Cabinet’s approval on 14/4/2014 adopting


clean coal as a source of energy, the year 2016/2017
witnessed:
– Cooperation with one of the investment companies to construct a
clean coal power plant in Oyoun Moussa in two phases, each has a
capacity of 1320 MW with total capacity of 2640MW, through BOO
scheme and the commercial operation of the project is scheduled in
the five-year plan (2022-2027).
– Contracting on 30/05/2017 with the consultant TRACTEBEL-Belgium
for the evaluation of three proposals from international consortiums
to construct a power plant operated by clean coal technology with a
capacity of 6600 MW through the EPC + Finance scheme in
Hamrawein with a capital investment cost of US$ 4.4 Billion and the
first part of the contract was signed with the winning Chinese
Alliance in September 2018.
A Glance on Technical Achievements in 2016/2017

• On 15/06/2017, in collaboration with the Hydro Power


Plants Executive Authority (HPPEA), the global consultant
ARTELIA was hired to evaluate the technical and financial
proposals presented by the Chinese Sino Hydro Co. for
construction of the largest pumped storage power plant in
Africa and Middle East with a capacity of 2400 MW through
the (EPC + Finance) scheme in Mountain Ataqa with an
initial capital investment cost of US$ 2.7 Billion.
• A conditional agreement was signed with Chinese Sino
Hydro Co. until the final contract for the project is
completed in September 2018.
A Glance on Technical Achievements in 2017/2018

• Pushing ahead the energy efficiency improvement and


conservation programs through the following:
– Installing 2.2 million high-pressure sodium luminaires (100-150
watt) and LED luminaires, by the end of October 2018, out of a
targeted number of 2.6 million luminaires for public illumination in a
total value of EGP 2.1 billion to be paid by the Ministry of Finance.
– Completing the distribution and installation of about 11.9 million
LED lamps out of a total targeted number of 13 million lamps , by
the end of October 2018, through the affiliated distribution
companies for household lighting, and the project is expected to be
completed during FY 2018/2019.
A Glance on Technical Achievements in 2016/2017

• Pushing ahead the energy efficiency improvement and


conservation programs through the following:
– Cooperating with Wadi El-Nile Company for implementation of a
pilot project of 250‘000 smart meters within the geographical area
of six distribution companies to be upscaled at the level of all
distribution companies.
– Completing the Procurement of one million pre-paid meters in May
2017 to the affiliated distribution companies to be installed at
customers’ premises.
– Installing 6.3 million prepaid coded meters during the period from
July 2016 until October 2018.
The 8th Five-Year Plan (2017-2022):
• EEHC has conducted a study to identify the generation capacities
required to be added in the 8th five-year plan (2017/2022) to
accommodate the forecast loads, in order to satisfy the needs of the
various sectors and ensure sufficient reserve margin for programmed
maintenance works and forced outage of any of generation units, and
also to address any unit problems due to ageing or poor fuel
characteristics.
• The study revealed that no additional thermal capacities are needed
under the (2017-2022) plan.
The 9th Five-Year Plan (2022-2027):
• In light of the various scenarios for load and energy growth, a
methodology has been developed for plans of future generation
projects corresponding to load scenarios, as shown below:

Primary Priority:
• Luxor 2250 MW Combined Cycle Power Project executed by Aqua Power
on BOO basis, scheduled to operate the 1st module of 750 MW in
December 2023 and the last module of 1500 MW in July 2024.
• Pump & Storage 2400 MW Power Project in Ataqa Mount, Suez,
executed on (EPC +Finance) basis with an initial cost of USD 2.7 billion.

As well, the final decision on the implementation of the above projects will be made after
reviewing the strategy prepared by TARES in light of the low prices of new and renewable
energies and the development of anticipated future loads.
The 9th Five-Year Plan (2022-2027):
Secondary Priority:
• In light of the low prices of new and renewable energies, coordination
has been made with the Emirati investor of the Oyoun Moussa (Coal)
Power Plant to replace the project with new and renewable energy
projects (wind + solar) with capacities of 750 MW in BOO basis.
• Final decision in respect of the execution of a thermal (6x1000) MW
coal-fired power plant in Hamrawein, the Red Sea, on “EPC + Finance”
basis, or part of it, will be made according to the development of future
loads.
• Power Purchase Agreements will be concluded between EETC and
investors for projects to be executed on BOO basis.

As well, the final decision on the implementation of the above projects will be made after
reviewing the strategy prepared by TARES in light of the low prices of new and renewable
energies and the development of anticipated future loads.
Electricity for 2018/2019
Electricity for 2018/2019
Electricity for 2017/2018
Peak load and installed capacity
Load Development
Load Development
Load Development
Load Development
• It is worth mentioning that the installed capacity cannot
be utilized in full due to the ageing of some generating
units, type & quality of fuel used, adverse impact of high
temperatures in Summer on some gaseous units and the
combined cycle units, dependence of hydro power plants
on the amount of irrigation discharged water defined by
the Ministry of Water Resources & Irrigation, as well as
the impact of nonuniformity of wind speed and solar
irradiance on the renewable energy.
Electric Power Production
• Electricity Production Companies:

1. Cairo Electricity Production Company


2. East Delta Electricity Production Company
3. Middle Delta Electricity Production Company
4. West Delta Electricity Production Company
5. Upper Egypt Electricity Production Company
6. Hydro- Power Plants Electricity Production Company
Electric Power Production
• Objectives

1. Production of electric energy from the annexed power plants.


2. Management, operation, maintenance, rehabilitation and
overhauling of the annexed power plants in accordance with
international best practices.
3. Rehabilitation, overhauling maintenance and loading of the
annexed power plants, to be executed in full compliance with the
instructions of the National Control Center, to ensure optimum
technical and economic operation of the system.
4. Sale of the electric power produced from the power plants to the
Egyptian Electricity Transmission Company and to the Distribution
Companies (in case power delivered on medium voltages).
Information about Production Companies
Information about Production Companies
Thermal Power Plant Projects
• The five year plan is set to ensure the availability
of electric power to different purposes based on
the following:
1. The expected annual growth rate of demand & the
peak load.
2. Adequate reserve to meet programmed outages,
forced outages and derating of existing generation
units.
3. Diversification of plant technologies (steam, combined
cycle, gas turbines and renewable).
Total Installed Capacities (30-6-2019)
Development of Installed Capacities (30-6-2019)
Development of Installed Capacities (30-6-2019)
Development of Installed Capacities
General Power Stations Statistics (30-6-2019)
General Power Stations Statistics (30-6-2019)
General Power Stations Statistics (30-6-2019)
General Power Stations Statistics (30-6-2019)
General Power Stations Statistics (30-6-2019)
Energy Generated and Purchased (GWh)
Energy Generated and Purchased (GWh)
Energy Generated and Purchased (GWh)
Energy Generated and Purchased (GWh)
Energy Generated and Purchased (GWh)
Development of Energy Generated in Power Plants (GWh)(30-6-2019)
Development of Energy Generated in Power Plants (GWh)(30-6-2019)
Development of Energy Generated in Power Plants (GWh)(30-6-2019)
Combined Cycle Power Plant
• The combined cycle power plant technology where a gas turbine
generator is combined with a steam turbine power plant with the
objective to increase the efficiency of electricity generation by
utilizing the output heat of the gas turbine flue gas to generate steam
in a heat recovery steam generator (HRSG) and therefore is used as
input heat to the steam turbine power plant to generate electricity
without any additional fuel.

• Acknowledging the importance of improving power plants efficiency


and fuel saving, EEHC started to implement combined cycle
technology more than thirty years ago by transforming the existing
gas turbine units to combined cycle and repowering old steam
turbines who still performing well to work as combined cycle as
follows:
Combined Cycle Power Plant
• Developments of combined cycle technologies in the last years
(development of gas turbine blades manufacturing, the use of special
coating to bear higher gas flue temperatures, increase protection and
measurement instruments efficiency ..etc) resulted in the increase of
the installed combined cycle module capacity to reach about 750MW
)2*500MWGT+1*250MW ST), Increase of efficiency to more than
58% and availability to (90:94%).

• The EEHC plans included the addition of 17 combined cycle modules


each of 750MW with the objective that combined cycle installed
capacity reaches about 55% from the total national Grid installed
capacity by year 2018.
Combined Cycle Power Plant
• Techno-economic feasibility study is underway to
overcome gas turbine units derating due to high
temperature in summer and during system peaks, by
introducing the new combined cycle technology which
enables reduction of compressed air temperature in the
gas turbine to the design temperature level (ISO) in order
to maximize the use of combined cycle capacity during
the system peak demand.
Hydro Power Plant
• Hydro power is considered one of the cheapest and cleanest sources
of power generation in Egypt, the power generation from hydro
resources started in 1960, with the construction of Aswan Dam to
control the Nile water discharge for irrigation.

• In 1967 the 2.1GW High Dam hydro power plants was commissioned,
followed by the commissioning of Aswan 2 power plant in 1985 and
in cooperation with the ministry of Water Research and Public Works;
Isna hydropower plant was commissioned in 1993 and Naga-Hamadi
in year 2008.

• The share of hydro generation to the total generation represents


about 4.8 % in 2019.
Hydro Power Indicators (2018/2019)
Hydro Power Plant
• The Hydro Power Plants Execution Authority and the
Egyptian Electricity Holding Company are commissioned the
New Assiut Barrage Hydro Power Plant with total installed
capacity of 32 MW in June 2018.
Development of Hydro Energy Generated (GWh)
Fuel
• The operation policy of the existing power plants depends
on the maximum utilization of natural gas in thermal
power generation due to its distinction apparent in the
economic and environmental aspects.

• Usage of N.G (including BOOT) in thermal power plants


connected to the gas grid reached 85.5% in 2018
representing 84.4% of total fuel consumption in power
generation.
Fuel Consumption by Type
Fuel Consumption by Type
Fuel Consumption by Type
Fuel Consumption Development (ktoe)
Fuel Consumption
Fuel Consumption development rate
Effect of using alternative fuel in thermal power plants
Effect of using alternative fuel in thermal power plants
Effect of using alternative fuel in thermal power plants
Isolated Power Plants
• There are about 30 power plants mainly diesel
and gas turbine units with a total amount of
205MW and one 5MW wind farm in Hurgada
installed in remote areas and connected to the
distribution networks of such areas.
Installed Capacity and Energy Generated from Isolated
Power Plants (2018/2019)
Electric Power Transmission
Egyptian Electricity Transmission Company (EETC)
Electric Power Transmission
Egyptian Electricity Transmission Company (EETC)

Objectives:
1. Management, operation and maintenance of electric power
transmission grids on Extra and High Voltages all over the
country, with the optimal economic usage of those grids.
2. Organization of the energy transmission on extra and high
voltage grids all over the country through the National
Dispatch Center and the Regional Control Centers.
3. Purchase of electric power produced from the power plants
according to the needs and selling it to the consumers on
the Extra and High voltages and to the Electricity
distribution Companies.
4. Co-ordination with the production and companies for
providing electric energy on the various voltages for all uses
with high efficiency.
Electric Power Transmission
Egyptian Electricity Transmission Company (EETC)
Objectives:
5. Co-operation with the Egyptian Electricity Holding
Company in preparing technical and economical studies to
meet the demand on electricity and its stability.
6. Implementation of electric power transmission projects on
Extra and High voltages approved by EEHC management
and in accordance with the time schedules.
7. Implementation of the interconnection projects approved
by EEHC Board of Directors, exchange of electric power
grids interconnected to the Egyptian Grid.
8. Carry out demand forecast for its direct customers as well
as financial and economic forecasts for the company.
Transmission Network Statistics
Transmission Network Statistics
Transmission Network Statistics
Transmission Network Statistics
Transmission Network Statistics
Energy Sold from Egyptian Electricity Transmission Company
International Electrical Interconnection
International Electrical Interconnection
International Electrical Interconnection
International Electrical Interconnection
1. The Egyptian / Saudi Electrical Interconnection Project:
• The project aims to exchange a capacity of 3000 MW between the two
countries through HVDC bipolar transmission technology on 500 kV
Badr Substation in the Arab Republic of Egypt and Medina & Tabuk
Substations in the Kingdom of Saudi Arabia with overhead lines totaling
1450 Km on both sides and a submarine cable of 16 Km crossing the
Aqaba Gulf and to that end.
• Coordination is underway with the Kingdom of Saudi Arabia to conclude
all contracts on the various packages of the Project for both sides by
30.5.2020.
International Electrical Interconnection
2. The Egyptian / Sudanese Electrical Interconnection Project:
• Completing implementation of the Egyptian / Sudanese connecting line
(220 kV with length of about 100 km), and the trial operation of a
capacity of 50 MW is expected to start by the end of this year.
• Completion of the full synchronous interconnection is planned to
transmit a capacity of 240 MW by the end of 2020 after installing the
ineffective power compensator devices for the Sudanese side power
stations.
International Electrical Interconnection
3. The Egyptian / Jordanian Electrical Interconnection Project:
• A study was prepared to raise the current capacity of the Egyptian /
Jordanian connection line to 2000 MW instead of 450 MW, which allows
a possibility for energy exportation to Lebanon, Syria and Iraq via
Jordan; and coordination is underway between the two sides to agree
on the optimal scenario to be executed.
International Electrical Interconnection
4. The Egyptian Electrical Interconnection with GCC Interconnection
Authority
• On 5.11.2019, a Memorandum of Understanding was signed by the Arab
Republic of Egypt with the Kingdom of Jordan on the one part and with
the GCC Interconnection Authority on the other part for interconnecting
the national grid of Egypt with the GCC grid through Jordan.
• The capacity of that interconnection will be determined upon completion
of preparing the technical studies that are being conducted at present
by one of the worldwide reputed consultant firms.
International Electrical Interconnection
5. The Egyptian / Libyan Electrical Interconnection Project:
• The construction of the 500 kV Burj Al-Arab / Marsa Matrouh
transmission line, double-circuit quadconductor, under progress with a
length of about 255 km. It will be operated temporarily with voltage of
220 kV, where it is used to support the Egyptian / Libyan
interconnection and be later powered at its full capacity by expanding
both of Burj Al-Arab and Marsa Matrouh substations up to 500 kV.
International Electrical Interconnection
6. The Egyptian / Cypriot Electrical Interconnection Project:
• A Framework Agreement has been signed with EuroAfrica
Interconnector Co. to transmit a capacity of 2000 MW from West
Burrullus region on the Mediterranean Sea in Egypt to Cyprus and from
there to Greece, thus providing a connection from the Egyptian grid to
the Pan-European electricity grid.
• The electrical interconnection will be implemented using High-voltage
direct current (HVDC) technology.
• A higher joint Steering Committee has been established between Egypt
and Cyprus, as well as a technical committee to implement the
recommendations made by the Steering Committee.
• The Project will be executed in two phases of 1000 MW each. The 1st
phase is scheduled to be completed in July 2021 and the 2nd phase in
July 2022.
International Electrical Interconnection
New & Renewable Energy

• In the framework of the strategic planning of power in


Egypt, the Electricity Sector’s strategy depends on
diversification of energy sources, expansion of utilizing
renewable energies, and rationalization of the use of
conventional energy sources.
• Egypt is endowed with abundant wind energy sources
especially in the Suez Gulf area which is considered one of
the best sites in the world due to its high and stable wind
speeds. The west of Suez Gulf area is considered one of the
most promising sites for construction of large wind farm
projects due to the high wind speeds ranging between 8-10
meters/second and also due to the availability of large
uninhabited desert areas which are perfectly qualified to
assimilate the future wind projects.
New & Renewable Energy

• In addition, there are other promising sites with average


wind speeds ranging between 7-8 meters/second in the
east and west of River Nile near Beni Suef and Menya
Governorates.
• Moreover, Egypt is one of the countries lying in the solar
belt region the most convenient for the solar energy
applications.
• Solar Atlas reveals that the average of vertical solar
radiation is between 2000-3200 KWh/m2/year and the rate
of solar rise ranges between 9-11 hours/day offering
opportunities of investment in the various solar energy
fields.
Renewable Energy Development Program
Renewable Energy Development Program
New & Renewable Energy

• The New & Renewable Energy strategy aims to increase the


share of generated energy from renewable energy to 20%
out of the total generated energy in Egypt by 2022, out of
which 6% from hydro power, 12 % from wind energy and
2% from other renewable energy sources (especially the
solar energy –PV-).
• The strategy also includes the construction of wind projects
with the participation of the private sector to bring the total
installed capacity to 7200 MW by 2022.
• EEHC is coordinating with the New and Renewable Energy
Authority (NREA) in different fields.
New & Renewable Energy

• EETC concluded a number of Power Purchase Agreements


(PPAs) for energy generated from renewables (for 20-year
term for wind and 25 years for solar) in a total capacity of
1965 MW, of which 500 MW wind energy under BOO
scheme and 1465 MW solar energy on Feed-in-Tariff (FIT)
basis.
• Also, a PPA was signed for energy generated from 200 MW
solar plant at Koum Ombo through a competetive tender
under BOO scheme.
New & Renewable Energy

• Negotiation and contracting procedures are currently


conducted for:
– 1820 MW of wind energy under BOO scheme with a number of
alliances (Siemens/ Gamesa - Toyota/Orascom/Engie - AlNowais -
Italgen).
– 750 MW of solar energy under BOO scheme with a number of
alliances (Eni of Italy, AlNowais of UAE, SkyPower of USA), in
addition to implementing a part of the project through the first
auction.
New & Renewable Energy

• EEHC and its subsidiaries have taken the initiative to install


solar photo voltaic (PV) systems on the roof of buildings
after selecting the appropriate places available for the
installation of solar cells, where the total installed capacity
on the network is 23.5MW till 7/2018 with total energy of
47.2GWh and following has been achieved:
New & Renewable Energy

• It is targeted to implement 300 MW under the feed-in tariff


system for capacities of less than 500 KW through the
affiliated distribution companies according to the second
phase of the feed-in tariff for renewable energies issued in
September 2016.
• The first solar/thermal power plant for electricity generation
was commercially operated on 30/06/2011 in Kuriemat with
140 MW capacity, of which 20 MW is the solar component,
based on concentrated solar power through parabolic
troughs integrated with combined cycle power plant using
natural gas as fuel.
New & Renewable Energy
• Installed Capacity from Renewable Sources (30/6/2019)
New & Renewable Energy

• Installed Capacity and Generated Energy from Renewable


Sources (Wind, Solar / thermal)
New & Renewable Energy

Feed in Tariff for Renewable Energy Projects (Wind - Solar)


• On 3 November 2019, construction of the solar Component
(PV) of the FIT program was completed with its first and
second phases in Benban, wherethe number of completed
solar plants reached (32) with a total capacity of 1465 MW.
New & Renewable Energy

Considering the foregoing, the FIT projects (wind and solar) were
tendered in two phases:
A. First Phase
• On 17/09/2014, a Cabinet decree was issued for the First
Phase of the FIT projects.
• In October 2016, Power Purchase Agreements, for solar
cells (PV) with a total capacity of 12 MW, were signed with
6 qualified investors for capacities of more than 500 KW
8MW was connected to the distribution networks by end of
2018.
• In March 2017, the financial closure documents were
accepted for 3 investors in the field of solar energy (Elef,
Infinity, Fas) with a total capacity of 150 MW but Elef was
apologized for the project to become a total capacity of 100
MW.
New & Renewable Energy

Considering the foregoing, the FIT projects (wind and solar) were
tendered in two phases:
B. Second Phase
• On 6/09/2016, the Second Phase of the (FIT) program was
announced.
• Cost Sharing Agreements for Phase B of the (FIT) program
have been signed with 30 investors for solar projects as
well as full agreements for projects.
• On 29/10/2017, the international financing institutions
submitted letters confirming the achievement of financial
closure of (30) projects for electricity production from the
solar energy in Benban region with total capacities of 1365
MW so the total capacity of the two phases is 1465 MW
(almost finished).
Electric Power Distribution

Distribution Company
1. North Cairo Electricity Distribution Company
2. South Cairo Electricity Distribution Company
3. Alexandria Electricity Distribution Company
4. Canal Electricity Distribution Company
5. North Delta Electricity Distribution Company
6. South Delta Electricity Distribution Company
7. El-Behera Electricity Distribution Company
8. Middle Egypt Electricity Distribution Company
9. Upper Egypt Electricity Distribution Company
Electric Power Distribution
Objectives
1. Distributing and selling to customers on medium and low voltages,
electric power purchased from the Egyptian Electricity Transmission
Company and from the Egyptian Electricity production companies on
medium voltage, and also electric power purchased from industrial and
other IPP’s exceeding their needs, provided that the approval of EEHC
Board is obtained.
2. Managing, operating and maintaining medium and low voltage grids in
the company, incompliance with the dispatch centers instructions as to
fit for economic operation requisites.
3. Preparing forecast plan studies on loads and energy for customers of
the company and on economic and financial forecasts for the company.
4. Conducting studies, researches, designs, and implementing electric
projects for different purposes on the medium and low voltages, and
carrying out all associated works.
5. Managing, operating and maintaining isolated units.
Information about Distribution Companies
Information about Distribution Companies
Medium and Low Voltage Network in 2019
Medium and Low Voltage Network in 2019
Number of Customers in Distribution Companies
Energy Sold from Distribution Companies
Number of Customers in Distribution Companies (30-6-2019)
Number of Customers in Distribution Companies (30-6-2019)
Energy Sold from Distribution Companies (30-6-2019)
Energy Sold from Distribution Companies (30-6-2018)
Distribution Transformers Capacities
Distribution Lines and Cables
Smart Services
Smart Services
Smart Services
Smart Services
Development of Customers Services
Smart Meters
Smart Services
Development of Customers Services
Pre-Paid Meters
Smart Services
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption

Second: Awareness of energy efficiency and conservation importance:


• The Ministry of Electricity & Renewable Energy launched a
national initiative entitled “You are the Solution” (Inta El-Hal)
supported by the Central Bank of Egypt and sponsored by
EEHC through the various media channels, street
advertisements and social media, to provide practical solutions
and suggestions that can be implemented by citizens to
rationalize electricity consumption.
• The campaign came out with positive results and imprinted a
clear impact on the behaviour of citizens.
Improving Energy Efficiency and Rationalizing Consumption

Second: Awareness of energy efficiency and conservation importance:


• The Energy Efficiency Improvement Project, funded by the
UNDP, implemented a campaign under the slogan “Energy
Efficiency in the Card” (kafa’it el-taqa fil-betaqa) within the
geographical domain of Cairo and Giza governorates, as a first
stage, to train sellers (300 vendors) and enhance their skills in
selling high energy efficiency devices, as well as holding
awareness seminars for consumers in the two governorates to
provide information and raise awareness of the importance of
being guided by the efficiency card when making a purchase
decision. In addition, seven seminars were also held for
information and awareness at the National Center for Women,
the Egyptian Engineers’ Syndicate, Heliopolis Association, and
Maddi, Heliopolis & Shooting Sporting Clubs, as well as Al-
Jazeera Youth Center.
Improving Energy Efficiency and Rationalizing Consumption
Improving Energy Efficiency and Rationalizing Consumption

Third: EE specifications & card program for household appliances:


• The Egyptian Minimum EE Performance Standards (MEPS)
have been issued for dish washers, fans of all types, television
sets, electric ovens and vacuum cleaners, and establishment
of energy testing laboratories in collaboration between the
Energy Efficiency Improvement Project, the Egyptian
Organization for Standards & Quality and manufacturers of
electrical appliances .
• Work is underway on the preparation of EE standards for air
conditioners with variable-speed piston, electric heaters
(instant), and household water pumps, and updating the
fridge specification issued under No. 3794/2008 to comply
with the requirements of the new version of the international
specification.
Energy Sold by Purpose
Energy Sold
Power Factor Improvement
Power Factor Improvement
Power Factor Improvement
Government Part
• Put taxes upon AC
• Increase Customs upon imported AC
• Legislation low to force stores to shut down at 10
o'clock
• Diversification of the use of fuel resources,
promoting the use of renewable energy and
rational use of conventional energy resources
• Improve Pf
People Part
• Control the temperature of AC and refrigerators
and boilers and shut them down after usage
• Usage of compact fluorescent lamps (CFO) and
electronic ballasts and saving and LED lamps
Rate structure
• Public utilities are monopolies, i.e., they have the
exclusive right to sell their product in a given area.

• Their rate are subject to government regulation.

• The total revenue which a utility may be authorized to


collect through the sales of its services should be equal
to the company’s total cost of service. Therefore

Revenue requirements = operating expenses +


depreciation expenses + taxes + (rate base* rate of
return)
Rate structure
• The determination of the revenue requirements is a
matter of regulatory commission decision.

• Therefore, designing schedules of rates which will


produce the revenue requirement is a management
responsibility subject to commission review.

• However, a regulatory commission cannot guarantee a


specific rate of earnings; it can only declare a public
utility has been given the opportunity to try to earn it.
Rate structure
• The rate of return is partly a function of local conditions
and should correspond with the return being earned by
comparable companies with similar risks.

• It should be sufficient to permit the utility to maintain


its credit and attract the capital required to perform its
task.

• However, the rate schedules, by law, should avoid


unjust and unreasonable discriminations, i.e., customers
using the utility service under similar conditions should
be billed at similar prices.
Customer billing
• Customer billing is done by taking the difference in
readings of the meter at two successive times, usually
at an interval of 1 month.

• The difference in readings indicates the amount of


electricity, in kWh, consumed by the customer in that
period.

• This amount is multiplied by the appropriate rate or the


series of rates and the adjustment factors, and the bell
is sent to the customer.
Customer billing
• In Egypt, the monthly bill includes the following items:
1. The customer’s account number
2. Number of accounting months
3. Date on which the billing period ended
4. Number of previous kWh the customer’s meter registered the
last month
5. Number of kWh the customer’s meter registered when the bill
was tabulated
6. Number of kWh the customer consumes during the billing
period
7. State sales taxes
8. Cleanness fee
9. Amount due
ELECTICITY TARRIF STRUCTURE IN EGYPT
• Fairly complex, especially for large industrial users.

• Rate structures for residential, small and large industrial


customers now are discussed.

• Electricity tariffs are designed to recover:


the cost to the utility of both providing the equipment to
generate the electricity, and operating the equipment.

• The first category of charges is called “fixed charges”, because


these charges help the utility to recover the costs associated with
providing the installed generating equipment.
• The charges imposed by the utility to recover these costs are generally
built into the charges for peak demand and power factor.

• Demand is a measure of the rate of energy consumption.

• The higher the demand, the greater the electricity generating capacity
required to supply that demand.

• Demand is measured in units of watts.

• Demand interval is the period over which the load is averaged.

• Consumption is measured in kilowatt-hours and can be considered


to be the integral of the instantaneous demand over time.
• A useful analogy is a trip in an automobile.

• Demand is analogous to the rate of travel or speed, in


kilometers per hour. The faster the automobile travels, the higher
the speed.

• Consumption is analogous to the total distance covered during


the trip.

• A car traveling at a high rate of speed (a consumer with a high


electricity demand) will cover a given distance (consume a given
number of kilowatt-hours of electricity) in a shorter period of
time than a car traveling at a lower rate of speed (a consumer
with a lower electricity demand).
• Demand charges are generally based on either an actual
measured peak demand or a contracted peak demand.

• The utility must provide the generating, transmission, and


distribution equipment capacity to meet a user’s peak
electric demand, even if that maximum electric demand
occurs for only a short period of time.

• Hence, the consumer can bear substantial costs for a short


duration of high electricity demand.
• In addition, because the demand charges are based on the higher of
contract peak demand or actual measured peak demand, the consumer
who contracts for a significantly higher peak demand than actually
required will also bear significantly higher electricity costs.

• The second category of charges is sometimes called “variable charges”


because these charges help the utility recover their costs of operating
the equipment (e.g., labor, fuel, taxes, and other costs of operation).

• The cost of operation depends on the amount of electricity generated.

• These costs are recovered in the kilowatt-hour charges


• TARRIF STRUCTURE IN EGYPT

• 1. RESIDENTIAL TARIFF STRUCTURES

• 2. SMALL INDUSTRIAL TARIFF STRUCTURS

• 3. LARGE INDUSTRIAL TARIFF STRUCTURE

• 4. PROJECTS IN THE FREE ZONE AREAS


TARRIF STRUCTURE IN EGYPT
• 1. Residential Tariff Structures
• Charges are easy to compute.

• The residential tariff is based strictly on kWh consumption.

• The tariff consists of a number of rate blocks; discrete levels of


consumption during which different unit charges for electricity
apply.

• It has a large no. of rate blocks, there are a total of 6 rate blocks.

• The tariff is designed and the charges are based on total monthly
electricity consumption (no charge for peak demand).

• The tariff is shown in the table below (Power factor is assumed


0.9).
Table 1a Residential Tariff Structure for houses (12/2012)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.05

Next 150 kWh (51 to 200 kWh) LE 0.115

Next 150 kWh (201 to 350 kWh) LE 0.175

Next 300 kWh (351 to 650 kWh) LE 0.27

Next 350 kWh (651 to 1000 kWh) LE 0.45

Additional kWh (over 1000 kWh) LE 0.57

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (2/2013)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.05 (2.5L.E max)

Next 150 kWh (51 to 200 kWh) LE 0.12 (18L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.19 (28.5L.E max)

Next 300 kWh (351 to 650 kWh) LE 0.29 (87L.E max)

Next 350 kWh (651 to 1000 kWh) LE 0.53 (185.5L.E max)

Additional kWh (over 1000 kWh) LE 0.67

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2014)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.075 (3.75L.E max)

Next 50 kWh (51 to 100 kWh) LE 0.145 (7.25L.E max)

First 200 kWh (0 to 200 kWh) LE 0.16 (32L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.24 (36L.E max)

Next 300 kWh (351 to 650 kWh) LE 0.34 (102L.E max)

Next 350 kWh (651 to 1000 kWh) LE 0.60 (185.5L.E max)

Additional kWh (over 1000 kWh) LE 0.74

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2015)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.075 (3.75 L.E max)

Next 50 kWh (51 to 100 kWh) LE 0.145 (7.25 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.16 (32 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.305 (45.75 L.E max)

Next 300 kWh (351 to 650 kWh) LE 0.405 (121.5 L.E max)

Next 350 kWh (651 to 1000 kWh) LE 0.71 (248.5 L.E max)

Additional kWh (over 1000 kWh) LE 0.84

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2016)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.11 (5.5 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.19 (9.5 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.21 (42 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.42 (63 L.E max)
Next 300 kWh (351 to 650 kWh) LE 0.55 (165 L.E max)

Next 350 kWh (650 to 1000 kWh) LE 0.95 (332.5 L.E max)

From 0 to more than 1000 kWh LE 0.95

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2017)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.13 (6.5 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.22 (11 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.27 (54 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.55 (82.5 L.E max)
Next 300 kWh (351 to 650 kWh) LE 0.75 (225 L.E max)

Next 350 kWh (650 to 1000 kWh) LE 1.25 (437.5 L.E max)

From 0 to more than 1000 kWh LE 1.35

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2018)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.22 (11 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.3 (15 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.36 (72 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.7 (105 L.E max)
Next 300 kWh (351 to 650 kWh) LE 0.9 (270 L.E max)

Next 350 kWh (650 to 1000 kWh) LE 1.35 (472.5 L.E max)

From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2019)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.30 (15 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.40 (20 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.50 (100 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.82 (123 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.00 (300 L.E max)

Next 350 kWh (650 to 1000 kWh) LE 1.40 (490 L.E max)

From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2020)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.38 (19 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.48 (24 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.65 (130 L.E max)

Next 150 kWh (201 to 350 kWh) LE 0.96 (144 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.18 (354 L.E max)

From 650 to 1000 kWh LE 1.18 (1180 L.E max)


No subsidize for the above rate blocks
From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2021)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.48 (24 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.58 (29 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.77 (154 L.E max)

Next 150 kWh (201 to 350 kWh) LE 1.06 (159 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.28 (384 L.E max)

From 650 to 1000 kWh LE 1.28 (1280 L.E max)


No subsidize for the above rate blocks
From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2022)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.58 (29 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.68 (34 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.83 (166 L.E max)

Next 150 kWh (201 to 350 kWh) LE 1.11 (166.5 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.31 (393 L.E max)

From 650 to 1000 kWh LE 1.36 (1360 L.E max)


No subsidize for the above rate blocks
From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2023)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.68 (34 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.68 (34 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.90 (166 L.E max)

Next 150 kWh (201 to 350 kWh) LE 1.19 (166.5 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.35 (393 L.E max)

From 650 to 1000 kWh LE 1.36 (1360 L.E max)


No subsidize for the above rate blocks
From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
Table 1a Residential Tariff Structure for houses (7/2024)
Monthly Electricity Consumption Cost per kWh
First 50 kWh (0 to 50 kWh) LE 0.71 (35.5 L.E max)
Next 50 kWh (51 to 100 kWh) LE 0.71 (35.5 L.E max)

First 200 kWh (0 to 200 kWh) LE 0.97 (194 L.E max)

Next 150 kWh (201 to 350 kWh) LE 1.23 (184.5 L.E max)
Next 300 kWh (351 to 650 kWh) LE 1.36 (408 L.E max)

From 650 to 1000 kWh LE 1.36 (1360 L.E max)


No subsidize for the above rate blocks
From 0 to more than 1000 kWh LE 1.45

•The residential rate structure is a "progressive" tariff .


•The higher the consumption, the higher the unit cost per
kilowatt-hour [i.e. more consumption the more average
cost of kWh].
‫متوسط استهالك االجهزة الكهربائية شهريا‬
‫‪Monthly Electricity Consumption‬‬ ‫اسم الجهاز‬
‫‪26W * 10hours * 30days = 7.8kwh‬‬ ‫لمبة موفرة‬
‫‪9W * 10hours * 30days = 2.7kwh‬‬ ‫لمبة ليد‬
‫‪300W * 8hr * 30days = 72kwh‬‬ ‫تالجة‬
‫‪2250W * 3hours * 30days = 202.5kwh‬‬ ‫غسالة‬
‫‪100W * 10hours * 30days = 30kwh‬‬ ‫تليفزيون‬
‫‪25W * 10hours * 30days = 7.5kwh‬‬ ‫ريسيفر‬
‫‪1800W * 2hours *30days = 108kwh‬‬ ‫سخان‬
‫‪100W * 10hours * 30days = 30kwh‬‬ ‫الالبتوب‬
‫‪300W * 10hours * 30days = 90kwh‬‬ ‫الكومبيوتر المنزلي‬

‫•تم افتراض ‪ 8‬ساعات استهالك للثالجات في اليوم نظرا الن التالجات معظمها تفصل عندما تصل لدرجة‬
‫التبريد المطلوبة لكن هذا في حاالت التالجات ذات الكفاءة العالية ( ) ‪class A‬بينما يزداد االستهالك كلما‬
‫قلت درجة ال ‪class‬‬
‫متوسط استهالك االجهزة الكهربائية شهريا‬
‫‪Monthly Electricity Consumption‬‬ ‫اسم الجهاز‬
‫‪1500W * 0.5hour *30days = 22.5kwh‬‬ ‫ميكروييف‬
‫‪1500W * 1hour *30days = 45kwh‬‬ ‫فرن كهربي‬
‫‪550W * 3hour *30days = 49.5kwh‬‬ ‫مبرد مياه‬
‫‪70W * 10hour *30days = 21kwh‬‬ ‫مروحة‬
‫‪200W * 4hr * 30days = 24kwh‬‬ ‫ديب فريزر‬
‫‪2000W * 0.5hour *30days = 30kwh‬‬ ‫بويلر‬
‫‪1125W * 3hr * 30days = 101.25kwh‬‬ ‫تكييف ‪ 1.5‬حصان‬
‫‪1680W * 3hr * 30days = 151.875kwh‬‬ ‫تكييف ‪ 2.25‬حصان‬

‫•طبعا االرقام ديه بتختلف من جهاز لجهاز ومدة االستهالك تختلف من أسرة ألسرة وعدد األجهزة ايضا‬
‫تختلف واألهم من ده كفاءة األجهزة الن كفاءة الجهاز ممكن تقلل من االستهالك الي ما يقارب من ‪ 30‬او ‪40‬‬
‫‪%‬‬
‫متوسط استهالك االجهزة الكهربائية شهريا‬
Monthly Electricity Consumption ‫اسم الجهاز‬
6W * 24hours * 30days = 4.32kwh ‫الراوتر‬
10W * 6hours * 30days = 1.8kwh ‫شاحن الموبايل‬
100W * 10hours * 30days = 30kwh ‫الالبتوب‬
200W * 10hours * 30days = 60kwh ‫الكومبيوتر المنزلي‬
1200W * 0.15hours * 30days = 5.4kwh ‫المكواة‬
1500W * 0.15hours * 30days = 6.75kwh ‫المكنسة‬

• the standby power for all electronic appliances is approximated at 20% of


full power die to the low efficiency of the power supply, this is a known
problem and people still working on it
Table 1b Residential Tariff Structure for commercial shops

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.27

Next 150 kWh (101 to 250 kWh) LE 0.41

Next 350 kWh (251 to 600 kWh) LE 0.53

Next 400 kWh (601 to 1000 kWh) LE 0.67

Additional kWh (over 1000 kWh) LE 0.72

Street lighting and traffic signs LE 0.475


Table 1b Residential Tariff Structure for commercial shops (7/2014)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.30

First 250 kWh kWh (0 to 250 kWh) LE 0.44

Next 350 kWh (251 to 600 kWh) LE 0.59

Next 400 kWh (601 to 1000 kWh) LE 0.78

Additional kWh (over 1000 kWh) LE 0.83

Street lighting and traffic signs LE 0.475


Table 1b Residential Tariff Structure for commercial shops (7/2015)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.32

First 250 kWh kWh (0 to 250 kWh) LE 0.50

Next 350 kWh (251 to 600 kWh) LE 0.61

Next 400 kWh (601 to 1000 kWh) LE 0.81

Additional kWh (over 1000 kWh) LE 0.86

Street lighting and traffic signs LE 0.475


Table 1b Residential Tariff Structure for commercial shops (7/2016)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.34

First 600 kWh kWh (0 to 600 kWh) LE 0.58

Additional kWh (over 600 kWh) LE 0.86

Street lighting and traffic signs LE 0.475


Table 1b Residential Tariff Structure for commercial shops (7/2017)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.45

First 250 kWh (0 to 100 kWh) LE 0.84

First 600 kWh kWh (0 to 600 kWh) LE 0.96

Next 400 kWh (601 to 1000 kWh) LE 1.35

From 0 to more than 1000 kWh LE 1.40

Street lighting and traffic signs LE 1.05


Table 1b Residential Tariff Structure for commercial shops (7/2018)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.55

First 250 kWh (0 to 250 kWh) LE 1.00

First 600 kWh kWh (0 to 600 kWh) LE 1.15

Next 400 kWh (601 to 1000 kWh) LE 1.45

From 0 to more than 1000 kWh LE 1.50

Street lighting and traffic signs LE 1.05


Table 1b Residential Tariff Structure for commercial shops (7/2019)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.65

First 250 kWh (0 to 250 kWh) LE 1.15

First 600 kWh kWh (0 to 600 kWh) LE 1.40

Next 400 kWh (601 to 1000 kWh) LE 1.55

From 0 to more than 1000 kWh LE 1.60

Street lighting and traffic signs LE 1.05


Table 1b Residential Tariff Structure for commercial shops (7/2020)

Monthly Electricity Consumption Cost per kWh

First 100 kWh (0 to 100 kWh) LE 0.65

First 250 kWh (0 to 250 kWh) LE 1.15

First 600 kWh kWh (0 to 600 kWh) LE 1.40

Next 400 kWh (601 to 1000 kWh) LE 1.55

From 0 to more than 1000 kWh LE 1.60

Street lighting and traffic signs LE 1.25


2. SMALL INDUSTRIAL TARIFF STRUCTURS

• Small industrial tariff structures are applied to consumers with


less than 500 kW connected Load.

• There are two separate tariff structures for consumers falling


into this category

• The small industries tariff includes private sector industrial,


agricultural, land reclamation, and other customers.

• The structure is shown Tables 2 and 3.


Annual Electricity Consumption

First 70,000 kWh L.E 0.0737


(0 to 70,000 kWh)

Next 100,000 kWh L.E 0.0602


(70,000 to 170,000 kWh)

Additional kWh L.E 0.0573


(over 170,000 kWh)

Table 2
Small industrial Electricity Tariff (less Than 500 kW}:
Private Sector industrial, Agricultural and land
Reclamation Customers
Annual Electricity Consumption

First 70,000 kWh L.E 0.1694


(0 to 70,000) kWh)
Next 100,000 kWh L.E 0.1385
(70.001 to 170,000 kWh)

Additional kWh L.E 0.1319


(over 170,000 kWh)

Table 3
Small industrial Electricity Tariff (less Than 500 kW}:
All Other Customers
• This tariff schedule is similar to the residential tariff structure.

• As with the residential tariff, the small industrial tariff is based


only on electricity consumption (kWh), and there is no explicit
charge for peak demand.

• This tariff is also broken down into a number of discrete rate


blocks.

• There are a number of differences between this tariff and the


residential tariff.
• First, the number of rate blocks in the small industrial tariff
is much reduced, compared to the residential tariff.

• Second, the small industrial tariff is a regressive tariff


structure: as the amount of consumption increases, the
average cost for a kilowatt-hour of electricity will decrease.

• Finally, the small industrial tariff structure is based on


annual consumption, not monthly consumption, as is the
residential rate.
3 LARGE INDUSTRIAL TARIFF STRUCTURE
• Applied to large industrial customers (demand equal to or larger than
500 kW) is the most complex of Egypt’s utility rate structure.

• Actually, two separate rate structure are applied to this class of


customers: a rate for lighting service and a rate for motive power.

3.1 INDUSTRIAL LIGHTING SERVICE


• Similar to those for small industrial use: charges are based on annual
kilowatt- hour consumption only, with no explicit demand charge.

• However, unlike the small industrial rate , which is regressive (the


greater the consumption the lower the rate), the lighting tariff is
progressive (the greater the consumption, the higher the rate)

• The rate is split into a number of rate blocks as illustrated in table 4


Table 4
Large Industrial Customer (500 kW or more) Lighting Service Tariff
Annual Electricity Consumption Cost per kWh
First 100 kWh (0 to 100 kWh) LE 0.034
Next 100 kWh (101 to 200 kWh) LE 0.054
Next 150 kWh (201 to 350 kWh) LE 0.088
Next 150 kWh (351 to 500 kWh) LE 0.110

Next 500 kWh (501 to 1000 kWh) LE 0.130

Next 1000 kWh (1001 to 2000 kWh) LE 0.155

Next 2000 kWh (2001 to 4000 kWh) LE 0.165

Additional kWh (over 4000 kWh)) LE 0.180

•This rate structure is used to compute annual lighting service charges


in exactly the same way as the small industrial rate structure is used.
• 3.2 Industrial Motive Power Tariff

• The large industrial motive power tariff applies to three


major classes of customers:
public sector industries,
national private sector industries,
investment sector companies.

 The tariff is based on three elements: annual demand


charge, annual consumption charge, and annual power
factor charge.

 In addition, for private and investment sector companies, a


fuel adjustment charge may be added.

 Each of these charges is discussed .


(i) Annual Demand Charge

• The electric demand charge is based on the highest of


one of three demands:
• the contracted power in kW,
• the contracted power in kVA times 0.9, and
• the actual recorded power in kW.

• The annual cost per kW of demand is currently LE 82.1.

• Hence, the highest of the three demands times LE 82.1


yields the annual demand charge.
(ii) Annual Consumption Charge
• The consumption charge is based on annual kilowatt-hours
of electricity used.
• The tariff is set up into a floating rate block structure.

• The number of kilowatt-hours in each rate block depends


on the contract demand of the consumer.

• The consumption tariff schedule is illustrated in Table 5.


Annual Electricity Consumption Cost per kWh
First 1000 hours time demand LE 0.1471

Next 500 hours time demand LE 0.1384

Next 1000 hours time demand LE 0.1207

Next 1000 hours time demand LE 0.1037

Next 1500 hours time demand LE 0.0788

Additional kWh LE 0.0673

Table 5
Large Industrial Customer (500 kW or more)
Motive Power Electricity Consumption Tariff
Impact of Contract Demand on Annual Consumption &
Demand Charges
• Both the demand charge and the consumption charge are
heavily dependent on the billing demand.

• If the billing demand is very much in excess of the actual


measured peak demand, it is possible that the demand and
consumption charges are excessively high.

• This is often the case in Egypt, where the contract demand


is negotiated with a mind towards future facility expansion.

• A renegotiation of contract demand to a level closer to actual


maximum demand can result in substantial savings.
(iii) Annual Power Factor Penalty

• The final element of the industrial tariff is the cost of the power
factor penalty.

• This penalty is applied when the measured power factor is less


than 0.9, and is based on the kilowatt-hour consumption and
average cost per kilowatt-hour.

• A poor power factor can be easily increased to 0.90 or above,


thereby eliminating the annual power factor penalty charge.

• The power factor penalty depends on how much the measured


power factor is below 0.9.
• When the power factor is less than 0.9 but higher than 0.6,
the penalty is computed according to the following formula:
Penalty = [(0.9 - P.F.)/2] x yearly kwh x avg LE / kWh

• When power factor is equal to or less than 0.6 but greater


than 0.4 the penalty is effectively doubled and computed
according to the following formula:
Penalty = [0.9 - P.F.] x yearly kwh x avg LE / kWh

• When the power factor is 0.4 or less the electricity


distribution company can refuse to provide electric service to
the consumer.
(iv) Annual Fuel Adjustment Charge

• For private and investment sector companies, a fuel adjustment


charge is added monthly to the bill.

• This charge is a fixed rate per kwh of consumption.

• Its primary purpose is to compensate for differences in the quantities


and the prices of petroleum fuels that are used for electricity
generation.

• Unfortunately, the fuel adjustment charge cannot be known in


advance, and therefore cannot be used accurately in budgeting
energy costs or calculating paybacks of energy-savings measures.
• It can vary from month to month, and has been quite significant in the
past.

• During the early part of 1990, e.g., the fuel adjustment charge was as
high as LE 0.10/kwh (nearly double the actual tariff charges for
consumption.

• This means that nearly two-thirds of the cost of electricity was the fuel
adjustment charge.

• In several months of late 1990, however, the fuel adjustment charge


was nil.

• The fuel adjustment charge is not applied to public- sector companies.


4 PROJECTS IN THE FREE ZONE AREAS

• Tariffs for industries in the Free Zone areas are quite simple; they are
made up of a demand charge and a flat rate consumption charge.

• The demand charge is as defined in section 3.2 ; it is an annual charge


based on the maximum of the contracted kW (or 0.9 times contracted
kVA) and the actual recorded kW.

• Charges and rates are based primarily on voltage; note that they
increase significantly for lower-voltage supply .

• The tariff are summarized as follows:


Electricity Prices for industries subjected to Prime Ministry 2019
Sheet 1
2)
Consider two residential consumers. One consumer’s
uses 275KWh in a month and the other uses only
175. What are the total electricity charges and what
is the average cost per kilowatt-hour of electricity
consumed for each? Comment on the results.
Sheet 1
2)1st consumer: 275KWh monthly
Total electricity charges = 100*.022 +100*.035 +
75*0.05 = 9.45L.E./month
Average cost=9.45/275=0.0344L.E./KWh

2nd consumer: 175KWh monthly


Total electricity charges = 100*.022 +75*.035 =
4.825L.E./month
Average cost=4.825/175=0.0276L.E./KWh

• The residential tariff is a progressive tariff as:


(Average cost)1 > (Average cost)2
i.e. if the amount of consumption increases, the
average cost increases
Sheet 1
3)
Consider two small private sector industrial consumers. One
consumer uses 275,000 kWh in a year and the other uses
only 125,000. What are the total electricity charges and
what is the average cost per kilowatt-hour of electricity
consumed for each?
Sheet 1
3)1st consumer: 275,000 KWh yearly
Total electricity charges = 70*103*0.0737 +
100*103*0.0602 + 105*103*0.0573 = 17195.5 L.E./year
Average cost = 17195.5/275000= 0.0625L.E./KWh

2nd consumer: 125,000 KWh yearly


Total electricity charges = 70*103*0.0737 + 55*103*0.0602
= 8470 L.E./year
Average cost= 8470/125000= 0.0678 L.E./KWh

• The residential tariff is a regressive tariff as:


(Average cost)1 < (Average cost)2

i.e. if the amount of consumption increases, the


average cost decreases
Sheet 1
4)
An industrial user has a contract demand of 8333 KVA and a
maximum recorded peak demand of 5200 kW. What is the
annual demand charge for the consumer?

• The contract demand times 0.9 is 7500 kW. This is higher than the
maximum recorded demand of 5200 kW.
• Hence, the annual demand charge is based on 7500 kW.

The actual charge is LE 82.1 / kW/yr x 7500 kW= LE 615,750/ yr


Sheet 1
5)
• For the industrial user in the previous
example, the electricity consumption is
35,000,000 kWh per year. What is the cost of
this electricity consumption?
Sheet 1
5)
As previously determined, the maximum demand used for billing purposes is
7500 kW.
no. of hours=35*106/7500=4666.67hr
First 1,000 hr x 7,500kW = 7,500,000 kWh @L.E 0.1471= L.E 1,103,250
Next 500 hr x 7,500kW = 3,750,000 kWh @L.E 0.1384= L.E 519,000
Next 1,000 hr x 7,500kW = 7,500,000 kWh @L.E 0.1207= L.E 905,250
Next 1,000 hr x 7,500kW = 7,500,000 kWh @L.E 0.1037= L.E 777,750

Next 1167 x 7,500kW = 8,750,000 kWh @L.E 0.0788= L.E 689,500

Extra 0 kWh @L.E 0.0673= L.E 0


TOTAL 35,000,000 kWh L.E 3,994,750
Sheet 1
6)
For the industrial user in the previous example, the electricity
consumption is 35,000,000 kWh per year. What is the amount of
the power factor penalty if the power factor is 0.55 and 0.75?

As previously determined, total cost for consumption is LE 3,994,750/yr.

The average cost per kWh is 3,994,750 / 35,000,000 = L.E 0.1141/kWh.


• For a 0.55 power factor, the penalty is computed as:

[0.9 - P.F] x yearly kWh x avg LE/kWh


[0.9 - 0.55] x 35,000,000 x 0.1141

•The power factor penalty at 0.55 PF is LE 1,397,725 per year. This penalty
can be eliminated if the power factor is increased to 0.9 or above through
the installation of capacitors.
• At a 0.75 power factor, the penalty is computed as:

[(0.9 - P.F.)/2] x yearly kWh x avg LE/kWh


[(0.9 - 0.75)/2] x 35,000,000 x 0.1141

• The power factor penalty at 0.75 PF is LE 299,513 per year. This penalty
can be eliminated if the power factor is increased to 0.90 or above through
the installation of capacitors.
Sheet 1
7)
For the industrial user in the previous example, the contract
demand is 7500 kW. What would be the savings by renegotiating
the contract demand to 6500 kW? What would be the savings by
renegotiating the contract demand to 5400 kW?

• At 7500 kW contract demand and 35,000,000 kWh consumption, from the


previous examples, the total consumption charges are LE 3,994,750

• At 6500 kW, and 35,000,000 kilowatt-hours of annual consumption, the


annual consumption charge would be as follows:
At 6500 kW
First 1,000 hr x 6,500 kW = 6,500,000 kWh @L.E 0.1471= L.E 956,150

Next 500 hr x 6,500 kW = 3,250,000 kWh @L.E 0.1384= L.E 449,800

Next 1,000 hr x 6,500 kW = 6,500,000 kWh @L.E 0.1207= L.E 784,550

Next 1,000 hr x 6,500 kW = 6,500,000 kWh @L.E 0.1037= L.E 674,050

Next 1,500 hr x 6,500 kW = 9,750,000 kWh @L.E 0.0788= L.E 768,300

Extra 2,500,000 kWh @L.E 0.0673= L.E 168,250

TOTAL L.E 3,801,100

The demand charge is 6500 kW x LE 82.1 /kW = LE 533,650 per year.


The total consumption charge at 6500 kW contract demand is LE 3,801,100
which is LE 193,650 lower than that at a contract demand of 7500 kW.
At 5400 kW
First 1,000 hr x 5,400 kW = 5,400 ,000 kWh @L.E 0.1471= L.E 794,340

Next 500 hr x 5,400 kW = 2,700,000 kWh @L.E 0.1384= L.E 373,680

Next 1,000 hr x 5,400 kW = 5,400 ,000 kWh @L.E 0.1207= L.E 651,780

Next 1,000 hr x 5,400 kW = 5,400 ,000 kWh @L.E 0.1037= L.E 559,980

Next 1,500 hr x 5,400 kW = 8,100,000 kWh @L.E 0.0788= L.E 638,280

Extra 8,000,000 kWh @L.E 0.0673= L.E 538,400

TOTAL L.E 3,556,460

The demand charge is 5400 kW x LE 82.1 /kW = LE 443,340 per year.


The total charge at 5400 kW contract demand is LE 3,556,460 which is almost
LE 438,290 lower than that at a contract demand of 7500 kW.

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