🏭 The Electricity Ministry launched its 2025 IndustrialEnergy Efficiency and Conservation Framework earlier this month, with the goal of supporting factories to reduce electricity consumption and operational costs, without compromising quality and working conditions. Following Vision 2030 and the UN’s Sustainable Development Goals (SDGs), the strategy seeks to boost the competitiveness of Egyptian products in local and international markets.

A green transformation: The launch of the framework comes in line with the government’s preparations to establish the first national platform to support green transition in manufacturing industries, seeking to mobilize green financing in private sector factories. This initiative seeks to accelerate the shift to low-carbon production systems and ease financial burdens on industrial investors, in line with the EU’s stricter environmental requirements with its carbon border adjustment mechanism (CBAM).

In the wake of a wake-up call for industrial energy security: The recent gas supply disruptions exposed the vulnerability of Egypt’s industrial energy system. When regional tensions halted Israeli gas inflows, the government was prompted to prioritize power plants over energy-intensive industries under an emergency plan. In response, the move severely impacted industries like fertilizers, steel, and aluminum. Short- and medium-term solutions such as importing LNG were adopted, alongside under-study long-term measures including allowing private-sector gas imports and creating a fund to support supplies from export revenues.

While cement and non-ferrous industries showed resilience, the crisis highlighted the urgent need for structural reforms and greater reliance on local energy sources. The government is currently expanding investments in manufacturing, localizing industry and improving energy efficiency in a bid to ensure sustainable production and expanding industrial potential.

The framework sets ambitious targets, with the most prominent ones including optimizing energy resources, shrinking electricity bills and production costs, reducing harmful emissions and protecting the environment, and supporting local manufacturing of energy-saving equipment. It also seeks to raise awareness among investors and workers about energy conservation, while enforcing requirements such as Article 48 of Electricity Law No. 87 of 2015, which mandates large facilities to appoint an energy efficiency officer.

The framework outlines actionable steps that factories can begin implementing immediately, including:

  • Conducting regular maintenance of high-consumption equipment to reduce waste.
  • Using energy management systems to monitor and analyze consumption.
  • Separating AC loads from machinery to avoid peak-time pressure.
  • Upgrading lighting systems with LED bulbs and maximizing natural light use.
  • Improving heating and cooling processes with heat-recovery systems.
  • Integrating renewable energy — such as solar energy — into operations.
  • Training workers to adopt a culture of conservation and innovation.
  • Enhancing motor efficiency and smart control systems.

In numbers: Applying these measures could help factories cut electricity consumption by 10-20%, directly reducing operational costs and raising margins. On an environmental level, this would reduce carbon emissions, support climate action, and preserve resources for future generations.

Beyond technical benefits, the Industrial Energy Efficiency and Conservation Framework also promotes local manufacturing of energy-efficient equipment — opening new recruitment doors and strengthening supply chains. This way, factories can produce higher-quality but cheaper products, boosting competitiveness at home and abroad.

Applications are already underway: The ministry is sharing the framework with major industrial facilities, alongside workshops and awareness campaigns to train workers and managers on best practices. It is also working closely with the Federation of Egyptian Industries to ensure recommendations are effectively applied and investments in energy-efficient technologies are encouraged.

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