BMI View: The outlook for Egypt's power sector is mixed. The country urgently needs to add new capacityto keep up with rising demand and the project pipeline is relatively strong, with a number of new naturalgas,coal and non-hydropower renewables projects at various stages of development. Investors do,however, face substantial structural challenges, including fiscal and current weakness, which has led to asurge in the cost of imported raw materials. Several major projects have already seen delays, though othersare progressing and the IMF programme appears to have restored cautious confidence.
Forecast And Industry Developments
We forecast 11.0% growth in thermal generation in Egypt in 2017, taking total output to 193.85 terawatthours(TWh). This equates to 92% of total electricity generated in the market.