Strategic aim of the cooperation
Denmark and Egypt have close bilateral ties, and Egypt’s geographical location, as well as geopolitical role, makes Egypt an important regional partner for Denmark and the European Union. This is clearly reflected in the Danish strategy for Africa and in the Danish-Egyptian strategic partnership.
Denmark and Egypt share a range of common energy policy priorities, including strengthening the bilateral trade and investment opportunities, promoting renewable energy, and increasing security of supply through the green transition. Furthermore, Egypt serves as a bridge between Africa and the Middle East, positioning the country geographically to become a leader in green initiatives and to accelerate the energy transition as a regional hub for increased green energy exports. Egypt also aims to supply green electricity to Europe through a direct transmission link.
The energy cooperation between Denmark and Egypt supports Egypt’s ambition to increase the share of renewable energy from currently 10 pct. to 42 pct. before 2030, corresponding to a yearly reduction of approximately 60 million tons of CO2e. Furthermore, the aim is to ensure a stable and affordable electricity access for the country’s 112 million residents.
Danish experiences to accelerate the green transition in Egypt
There is a significant untapped potential of producing green and renewable energy in Egypt. With currently 90 pct. of its electricity supply still based on fossil fuels, Egypt is the biggest consumer of oil and natural gas on the African continent. At the same time, an unstable and state-owned energy supply hinders the necessary investments and transformation of the electricity system to promote a green energy transition in the country.
Without the necessary political decisions in the energy sector, the CO2e emissions are expected to double by 2050. The Danish-Egyptian energy cooperation therefore aims to support in four core areas:
- Long-term planning and energy system modelling
- Integration of renewable energy
- Wind resource assessment
- Energy efficiency
To support Egypt's goals and future energy needs, a significant challenge is to ensure sufficient flexibility in the electricity system, which must be continuously adapted to the increasing share of wind and solar energy into the electricity grid. A successful integration of renewable energy is therefore one of the most important priorities in the partnership. In addition to the development of scenarios analysis to reach national targets and the establishment of long-term planning for the electricity sector to ensure an informed decision-making. The cooperation is therefore both technical and institutional, with a focus on a balanced energy transition in Egypt.
Main Egyptian partner authorities are: the Egyptian Ministry of Electricity and Renewable Energy, Egyptian Electricity Holding Company, Egyptian Electricity Transmission Company, New and Renewable Energy Agency, and Egyptian Electricity Regulator.