{"id":81618,"date":"2024-01-08T00:00:00","date_gmt":"2024-01-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/01\/08\/could-egypts-electricity-price-hike-make-renewable-energy-alternatives-more-attractive-to-investors\/"},"modified":"2024-01-08T00:00:00","modified_gmt":"2024-01-08T00:00:00","slug":"could-egypts-electricity-price-hike-make-renewable-energy-alternatives-more-attractive-to-investors","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/01\/08\/could-egypts-electricity-price-hike-make-renewable-energy-alternatives-more-attractive-to-investors\/","title":{"rendered":"Could Egypt\u2019s electricity price hike make renewable energy alternatives more attractive to investors?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><\/strong><strong>Egypt hikes electricity <\/strong><strong>prices<\/strong><strong> leveling the playing field for renewables<\/strong><strong>:<\/strong> Egypt\u2019s Electricity and Renewable Energy Ministry has <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6468a17b-84c3-4eff-be44-5ad1a59c8a21\" style=\"\" rel=\"noopener\">approved a 16-26%<\/a> (consumption-dependent) increase in electricity tariffs for households and businesses, bringing the price of fossil-fuel powered electricity closer to that of renewable energy. This improves the latter\u2019s level of competitiveness in the market, and could attract more investments into Egypt\u2019s renewables sector. The new price ranges came into effect at the start of the month and will be in place until June 2024, according to an Electricity Ministry official that <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6468a17b-84c3-4eff-be44-5ad1a59c8a21\" style=\"\" rel=\"noopener\">spoke to Enterprise<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Breakdown of electricity increase for <\/strong><strong>households<\/strong><strong> based on consumption:<\/strong><\/p>\n<ul>\n<li>The first 0-50 KWh\/month will be charged EGP 0.58, up 20.8% from EGP 0.48;<\/li>\n<li>The next 51-100 KWh\/month at EGP 0.68, up 17.2% from EGP 0.58;<\/li>\n<li>The next 101-200 KWh\/month at EGP 0.83, up 7.8% from EGP 0.77;<\/li>\n<li>The next 201-350 KWh\/month at EGP 1.25, up 17.9% from EGP 1.06;<\/li>\n<li>The next 351-650 KWh\/month at EGP 1.4, up 9.4% from EGP 1.28;<\/li>\n<li>Those consuming more that 1,000 KWh per month will pay EGP 1.65, up 13.8% from EGP 1.45.<\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Breakdown of electricity increase for <\/strong><strong>businesses<\/strong><strong> based on consumption:<\/strong><\/p>\n<ul>\n<li>The first 0-100 kWh\/month will rise to EGP 0.65 per kW.<\/li>\n<li>The next 0-250 kWh\/month will rise by 13% to EGP 0.136 per kW <\/li>\n<li>The next 0-600 kWh\/month will see a 7% hike in power bills to EGP 0.15 per kW<\/li>\n<li>The next 601 kWh-1 MW\/month will rise 6% to EGP 0.165 per kW, <\/li>\n<li>> 1 MWh\/month can expect a 12% jump to EGP 0.18 per kW.<\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Electricity subsidies are on the way out: <\/strong>The Madbouly government in 2020 <a target=\"_blank\" href=\"https:\/\/press.us9.list-manage.com\/track\/click?u=3f7bc576715ca1a70edef2788&id=ff3be95bab&e=05dac286dc\" style=\"\" rel=\"noopener\">laid out<\/a> a roadmap to phase out subsidies by 2025 \u2014 pushing back an existing July 2022 deadline that was already an extension of a 2019 deadline penciled in way back in 2014.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And the subject has been a point of contention:<\/strong> The <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/c9395f65-e732-45c9-b18a-a22c63736c0d\" style=\"\" rel=\"noopener\">final text<\/a> of the COP28 climate summit last month called for the phase out of \u201cinefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible\u201d in order for the price of energy sourced from fossil fuels to adjust to a more accurate market price which places renewable energy on a more equal standing. Developing countries currently facing dangerous levels of inflation however have been reluctant to remove subsidies fearing the impact on its citizens, especially as green alternatives are yet to become easily accessible.   <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>In the meantime, Egypt has been slowly rolling out green incentives: <\/strong>The state-owned Egyptian Electricity Holding Company last month <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EEHCSM\/posts\/660199392967500?ref=embed_post\" style=\"\" rel=\"noopener\">issued regulations<\/a> on decentralized solar energy usage in a bid to accelerate the switch to green energy. The Egyptian government says it <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/09370fe4-9566-4ffb-8571-999bdd4e1a7c\" style=\"\" rel=\"noopener\">has identified<\/a> seven major strategic industries including the solar energy, green hydrogen and EV sectors as potential beneficiaries of the state\u2019s planned tax exemptions announced <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5f955b5d-40c5-4b38-b1d9-4cffe953f653\" style=\"\" rel=\"noopener\">in late August<\/a>. The planned incentives include five-year tax breaks except for VAT, discounts on land prices, and an expansion of Egypt\u2019s single-approval golden license in a bid to accelerate projects in priority sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new 16-26% price hikes came into effect last week and will be in place until June 2024<\/p>\n","protected":false},"author":1,"featured_media":81619,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[104],"tags":[40,11,88],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-81618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-renewables","tag-egypt","tag-enterpriseclimate","tag-renewables","wpautop","entry"],"acf":{"mongo_id":"fc167335-0aec-47c1-8dfa-ca6b908d64c3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/12\/1176.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Could 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