The electricity sector has lost EGP 150m in total as a result of the recent targeting of power infrastructure in Egypt, Minister of Electricity Mohamed Shaker said on Monday.
In an interview with state-run news agency MENA, Shaker explained that EGP 100m has been lost due to the targeting of electricity towers, while another EGP 50m have been lost from electricity kiosks and transformers. Shaker added that all power grids are being secured by the police and the armed forces.
Bombings have been a frequent occurrence in different governorates across Egypt since the ouster of former president Mohamed Morsi in July 2013. However, the explosions have recently begun to target power stations. The most recent attack was three bombs that targeted an electricity tower in Aswan, causing a major power outage for several days.
The Ministry of Electricity is currently studying an offer from US company General Electric (GE), to build a new centre to generate energy in Egypt. It targets adding 4,500 MW through the combined cycle technology.
President Abdel Fattah Al-Sisi demanded the Ministry of Electricity study the offer as a prelude to preparing a memorandum of understanding (MoU) between the Egyptian Electricity Holding Company (EEHC) and GE.
Al-Sisi has also asked the ministers to make the best use of the current electricity capacity through period maintenance for power stations. He also requested that they buy the necessary fuel for stations and build new stations as part of the contracts signed during the Economic Summit in March.
Siemens AG reached agreements with the Egyptian government to build a 4.4 GW Beni Suef power plant, along with a wind power plant, President and CEO of Siemens AG Joe Kaesser said at the summit.
Al-Sisi said the electricity capacity that will be generated through the Siemens project should be pumped into the national grid within 1.5 years, to provide energy for investors.
Egypt needs $12bn in investment over the next five years to resolve the electricity crisis, Al-Sisi said in September 2014. He noted that the electricity capacity should be increased by approximately 2,500 MW every year, to be able to produce an extra amount of around 12,500 MW in five years.
The electricity subsidy allocations for the fiscal year (FY) 2014/2015 amount to approximately EGP 27bn, and the government plans to decrease this figure to EGP 20bn by FY 2015/2016, according to Shaker.