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FINANCIAL NEWS
Egypt, Saudi Arabia to ink electricity swap deal
23 Jul 2012
(MENAFN) Power outages in Egypt are occurring with increasing regularity as soaring temperatures force Egyptians to use fans and air conditioning, Saudi Gazette reported.
Minister of Energy Hassan Younis said that energy consuming during peak times is around 3000 megawatts more than can be comfortably supplied, and the additional demand is forcing up the cost of production.
That prompted the government to announce a series of measures to combat the country’s electricity shortage.
Younis said that there is a planned electricity swap deal with Saudi Arabia, meaning that each country will borrow from the other during hours of peak demand.
The government’s plan also includes energy conservation through energy-saving lamps to replace wasteful incandescent ones.
New power stations will soon be opened according to an official at the energy ministry.
A new power station at Damietta and another at Abu Kier in Alexandria governorate have received investment worth USD1.9 billion and will generate an additional 1800 megawatts of energy.
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