{"id":704067,"date":"2026-05-20T00:00:00","date_gmt":"2026-05-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?post_type=hardhat&p=704067"},"modified":"2026-05-20T02:53:59","modified_gmt":"2026-05-20T02:53:59","slug":"why-egypts-facilities-are-rebuilding-their-power-systems-from-the-inside-out","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/why-egypts-facilities-are-rebuilding-their-power-systems-from-the-inside-out\/","title":{"rendered":"Why Egypt\u2019s facilities are rebuilding their power systems from the inside out"},"content":{"rendered":"

The country\u2019s<\/strong> e<\/a><\/strong>lectricity<\/a><\/strong>tariff hikes<\/a><\/strong> have landed hard <\/strong>on commercial<\/strong> and industrial businesses <\/strong>\u2014 and the scramble to adapt is now determining who survives and who doesn\u2019t. Margins that were already thin are growing thinner still, and the old playbook \u2014 slap some solar panels on the roof and call it a day \u2014 isn\u2019t cutting it anymore. Companies aren\u2019t trying to run fewer hours \u2014 they\u2019re trying to build smarter electrical systems that maintain productivity while consuming less power, ABB Egypt Chairman Ahmed Hammad tells EnterpriseAM.<\/p>\n

Energy conservation is not energy efficiency.<\/strong> Conservation<\/a> means cutting demand \u2014 shutting down lines, switching off lights, reducing activity. Meanwhile, efficiency means using better technology \u2014 restructuring internal electrical networks, upgrading distribution panels, and replacing aging infrastructure \u2014 to produce the same output with less energy, sources tell EnterpriseAM.<\/p>\n

\n

How existing facilities bleed energy \u2014 and money<\/p>\n

The losses start at the infrastructure level.<\/strong> Aging transformers and deteriorating cable insulation increase resistance, generating heat and voltage drops that waste electricity before it reaches productive use, Hammad and Giza Cable Industries CEO Ahmed Mohsen tells us. Egypt\u2019s market includes an estimated EGP 3-4 bn annually in low-grade cables<\/a> with copper purity dropping to 96% \u2014 raising not just energy waste, but fire and maintenance risks as well.<\/p>\n

Rising electricity prices are pushing major investors to prioritize lifecycle costs<\/strong>, voltage efficiency, and energy performance rather than simply choosing the lowest-cost supplier, Mohsen says. Any capex savings from lower-grade cables evaporate quickly in facilities running around the clock, he adds.<\/p>\n

\n

Quick fixes vs. real engineering<\/p>\n

Some startups are <\/strong>promoting<\/strong> devices they claim can slash electricity consumption by <\/strong>40-50%<\/strong> \u2014 figures industry executives say don\u2019t hold up to scrutiny. Many rely on a sleight of hand by reducing reactive power \u2014 the overhead that keeps electrical fields running without doing productive work. It looks good on paper, but it doesn\u2019t touch actual energy consumption. Active power \u2014 what actually runs your machines \u2014 is where real savings live, and those require upgraded load management systems and power factor improvements, not \u201cmiracle\u201d technologies, Mohsen argues.<\/p>\n

The shift is already visible in order books<\/strong>, and demand is no longer concentrated in new developments. At ABB Egypt, upgrade and rehabilitation work now accounts for 25-35% of annual business volume. Realistic first-year savings from smart panel upgrades, power factor improvements, and integrated system management generally land between 18-20%, Hammad says.<\/p>\n

The broader market is also absorbing volatile copper prices and regional supply <\/strong>disruptions. <\/strong>Major cable manufacturers are raising local content to 40-90% by converting raw copper into finished products, according to Elsewedy Cables General Manager Amr El Sawaf and Mohsen.<\/p>\n

Meanwhile, energy efficiency is becoming a central design consideration in real estate<\/strong>, with developers selecting cables and materials based on resistance, insulation quality, and transmission efficiency, Living Yards CEO Abdallah Lotfy tells us. Clients are increasingly linking green infrastructure with lower long-term operating costs \u2014 making efficiency features a genuine sales factor.<\/p>\n

\n

A local case for integrated energy reengineering<\/p>\n

Rather<\/strong> than upgrading components, Korra Energi is redesigning entire energy systems <\/strong>internally <\/strong>\u2014 recovering waste heat, capturing flare gas, and stacking generation modes, CEO Ayman Korra tells EnterpriseAM. Its waste heat recovery plant at Heidelberg Materials Egypt\u2019s Helwan Cement factory covers roughly 30% of self-consumption, he adds. The company says it has built the country\u2019s first trigeneration plant \u2014 which produces electricity, heating, and cooling simultaneously from a single fuel source \u2014 raising total system efficiency to 76%. <\/p>\n

What\u2019s next? <\/strong>Another round of tariff adjustments, which are likely given the IMF mandate. The businesses who have done the engineering work will absorb it. The ones who haven\u2019t will be having a different conversation by this time next year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rising electricity tariffs are pushing factories, developers, and commercial businesses to rethink the physical infrastructure behind their power bills<\/p>\n","protected":false},"featured_media":704068,"menu_order":0,"template":"","categories":[7235],"tags":[152,93,72,7116,7111],"class_list":["post-704067","hardhat","type-hardhat","status-publish","has-post-thumbnail","hentry","category-hardhat","tag-elsewedy-electric","tag-energy","tag-enterpriseam","tag-hardhat","tag-infrastructure","wpautop","entry"],"acf":{"mongo_id":"c94e27a0-44a9-48d8-b578-3bdad0e94dde","order":"12","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2024\/1\/659.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Power, rethought","related_issue":[704047],"teaser":"Rising electricity tariffs are pushing factories, developers, and commercial businesses to rethink the physical infrastructure behind their power bills"},"yoast_head":"\nWhy Egypt\u2019s facilities are rebuilding their power systems from the inside out - 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