Alliance Energy Resilience Investments via cooperation with Northern Africa Case study Egypt

Egypt was a major energy exporter since 1990 but with significant growth in energy demand, It became a net importer from 2014 to 2018. Recent substantial offshore natural gas discoveries, robust strides in renewable energy deployment, and the establishment of electricity interconnections have ascended Egypt to a pivotal position in the Eastern Mediterranean. The combination of these factors has not only led Egypt to self-sufficiency and become a net exporter again. Egypt’s renewable energy adoption faces headwind due to financial crisis. Nevertheless, the country persists in advancing policy initiatives meant to pave the way for investment, and facilitate the transition to renewable energy sources.

READ FULL REPORT

Background

Egypt stands at a pivotal crossroads in the global energy paradigm, endowed with substantial natural gas reserves, robust renewable energy potential, and ambitions to emerge as a key player in the hydrogen and renewable energy markets. The nation's strategies encompass natural gas, hydrogen, and renewable energy, aiming to bolster domestic resilience and foster regional energy security.

Egypt's energy landscape offers promising prospects for collaboration with NATO countries to enhance energy resilience, mitigate challenges, and leverage mutual expertise for sustainable energy transitions. Leveraging NATO nations' expertise and resources in technological advancements, policy frameworks, and financial backing could aid Egypt in overcoming domestic challenges, optimizing infrastructure, and fostering sustainable energy transitions.

The interconnections between NATO nations and Egypt's rich energy potential pave the way for collaborative opportunities. Joint efforts focused on technological innovation, sustainable infrastructure development, and policy alignment can fortify Egypt's energy sector, contributing to regional stability and global energy resilience.

Egypt’s energy landscape demands adaptable policies, technological innovations, and strategic collaborations to ensure a diversified, sustainable, and secure energy future. Addressing these challenges requires a comprehensive strategy, consolidating policy reforms, technological advancements, and international partnerships to capitalize on Egypt’s renewable energy potential, and navigate towards a resilient and sustainable energy paradigm.

Key insights

This paper explores potential avenues of collaboration between NATO countries and Egypt to bolster energy resilience. The study revolves around three pivotal themes:

Egypt’s current energy mix: An extensive analysis dissecting Egypt’s fossil, nuclear, and burgeoning renewable energy sectors. It scrutinizes their contributions to current consumption patterns and their economic significance in the energy landscape.
Egypt’s mid- to long-term energy projects: With a special emphasis on the green/renewable energy sector, this section navigates through Egypt’s strategic initiatives, and the implications for its dependency on global technology providers.
Egypt’s regional and beyond-regional energy relevance: A comprehensive exploration capturing the existing capacities of Egypt-centred energy interconnectors, and the planned energy exports toward Europe.

The analysis of these dimensions will pave the way for a detailed assessment of the opportunities and challenges for collaboration between NATO countries and Egypt in energy sector.