Egypt has revised its renewable energy target for 2040, lowering it from 58% to 40%, according to Petroleum Minister Karim Badawi. The decision underscores the country’s continued reliance on natural gas, which will remain a central part of Egypt’s energy strategy for years to come.
Prior to the COP27 climate summit in 2022, Egypt had committed to increasing renewable energy to 42% of its energy mix by 2035, with plans to bring this target forward to 2030. In June 2024, former Electricity Minister Mohamed Shaker announced an ambitious goal to reach 58% renewable energy by 2040, a plan that has now been scrapped.
Badawi, speaking at the Mediterranean Energy Conference 2024, called for collective efforts to boost exploration and attract more investments, particularly in the natural gas sector, which remains abundant in the region.
This renewed focus on fossil fuels comes as Egypt works to regain the confidence of international oil companies, whose operations have slowed amid a foreign currency crisis that left the country with substantial arrears. Since taking office in July, Badawi has met with several global energy companies, including Italy’s Eni, which is set to begin drilling new wells in Egypt’s Zohr gas field in early 2025 to increase production.
Production at Zohr, which peaked at 3.2 billion cubic feet per day (bcf/d) in 2019, has declined to 1.9 bcf/d by early 2024. To make up for the shortfall, Egypt has increased gas imports from Israel via pipeline and through liquefied natural gas (LNG) shipments, while also boosting imports of high-sulphur fuel oil. In September, imports surged to 255,000 barrels per day (bpd), the highest level since at least 2016.
