Northern African country Egypt has announced plans to raise electricity rates as part of its gradual removal of power subsidies.
The Minister of Electricity and Renewable Energy, Mahmoud Esmat, confirmed the development on Friday, noting that a new tariff structure will take effect from January 2026.
Esmat made the disclosure while speaking at the 21st General Conference of the Association of Power Utilities of Africa (APUA).
According to him, the adjustment will reflect actual costs, with the government set to review prices after that date to establish a new framework.
He emphasized that no tariff increase will take place before January 2026, but did not specify what the new rates would be.
The minister noted that electricity subsidies in Egypt currently stand at about EGP 170 billion ($3.5 billion).
He added that the power sector consumes around 110 million cubic meters of natural gas daily at $4 per million BTU, even though its real cost exceeds $7.
Egypt has faced rising pressure to reform its subsidy structure and balance the growing financial burden on its electricity sector.
Egypt to add more renewables to energy mix
In addition, the Minister noted that renewable energy is projected to account for 42% of Egypt’s energy mix, with the share expected to climb above 65% by 2040.
Esmat said the government is working to boost energy efficiency to achieve up to 18% consumption savings by 2030.
He also highlighted the need to modernize the national grid, secure funding for advanced energy technologies, and expand private sector participation in renewable energy.
Egypt’s electricity sector has been under strain for years due to load-shedding and heavy reliance on imported fuel.
The country spent about $1.18 billion on natural gas imports to meet domestic demand.
However, the government is now accelerating its transition toward renewables.
Broader energy strategy
In August 2025, Egypt added 2,000 megawatts (MW) of solar and wind power to the national grid.
The Ministry stated that the expansion would help meet rising demand, lower operational costs, and reduce environmental impact.
The Ministry of Electricity and Renewable Energy reported significant improvements in fuel efficiency.
In June, gas consumption fell to about 127 million cubic meters compared to a planned 142 million cubic meters.
The 12% reduction is estimated to save the government roughly $23.6 million per month.
The Minister emphasized the need to upgrade the national grid, attract financing for modern technologies, and work with the private sector to expand renewable energy.
