Egypt has lowered its renewable energy target for 2040 to 40%, down from a previously announced goal of 58%, Petroleum Minister Karim Badawi said on Sunday. The revised target reflects the country's continued reliance on natural gas as a cornerstone of its energy mix.
Ahead of the COP27 climate summit in 2022, Egypt had committed to raising renewable energy to 42% of its energy mix by 2035, later accelerating the timeline to 2030. In June 2024, the country outlined plans to increase this target to 58% by 2040, a goal now abandoned.
“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve new discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said at the Mediterranean Energy Conference 2024.
The shift in energy policy comes as Egypt seeks to restore trust with foreign oil companies, which scaled back operations following a hard currency shortage that left the country with significant arrears. Since assuming his role in July, Badawi has engaged with multiple international energy firms, including Italy's Eni, which plans to begin drilling new wells in the Zohr gas field in early 2025.
Zohr, Egypt's largest gas field, saw production peak at 3.2 billion cubic feet per day (bcf/d) in 2019, allowing the country to become a net gas exporter. However, output fell to 1.9 bcf/d by early 2024, prompting Egypt to increase gas imports through a pipeline from Israel and additional liquefied natural gas (LNG) shipments to avoid prolonged power outages.
In response to rising energy needs, Egypt has also ramped up imports of high-sulphur fuel oil, with imports reaching 255,000 barrels per day in September—the highest level since at least 2016.
Source: Reuters
