Energy Efficiency in the Building Sector in Egypt Presentation by Dr. Paul H. Suding , GTZ „Energy Efficiency Made in Germany“ Nile Hotel Cairo 08 December 2009

Content Building sector energy in Egypt Residential energy consumption structures and trends, issues RE & EE potentials Framework conditions & energy prices Policy initiatives and cooperation projects Suding GTZ GACIC 08/12 /2009

Building Energy in Egypt, own estimates Buildings Energy 5-7 mil residential (and mixed use) buildings; 18–19 mil apartments 100-200 000 commercial buildings 300-400 000 public buildings 17-18 mil res. customers; 41 TWh electricity & 7 Mtoe energy 1.2 mil com. customers; 3 TWh electricity 200-000 public customers; 16 TWh electricity The numbers are calculated by Dr. Paul Suding based on electricity consumption statistics, housing surveys , IEA energy statistics and plausibility checks. Suding GTZ GACIC 08/12 /2009

Building Energy Consumption Egypt, by Sectors The numbers are calculated by Dr. Paul Suding based IEA energy statistics and plausibility checks. The respective consumption in Germany Mtoe Residential (12 elt) 25 Mtoe commercial and public (11 elt) Suding GTZ GACIC 08/12 /2009

Residential Energy Egypt, by fuel and purpose The numbers are calculated by Dr. Paul Suding based on electricity consumption statistics, EEHC analysis, HBRC surveys, EEIGGR -UNDP project analysis, IEA energy statistics and plausibility checks. Suding GTZ GACIC 08/12 /2009

Building Energy in Egypt, ISSUES Rapid load growth causes growing power capacity requirements Extremely high LPG consumption leads to imports of this product High electricity coverage, low average consumption but extreme inequality Inefficiencies lead to high electricity consumption Suding GTZ GACIC 08/12 /2009

ISSUE: Load profile (summer) and peak load growth (over 1 GW/year) From EEHC (Dr. Shaher Anis) Suding GTZ GACIC 08/12 /2009

ISSUE: High access, low average consumption, extreme inequality Calculations made by Dr. Paul Suding based on consumptions statistics from EEHC. Results: 80% /20% of residential customers use 50% of electricity each 5% of residential customers consume 23% of residential electricity 35% of res customers consume only 10% of res. Elt Egypt Germany Res Elt cons per capita (kWh/a/cap) 474.1 /1500 Res Energy per capita kgoe/a/cap 88.5 /808 Suding GTZ GACIC 08/12 /2009

Building Energy in Egypt, RE & EE potentials Light – CFL and LED, natural light HVAC – building codes and appliance efficiency, natural ventilation, passive solar in winter, solar assisted cooling Water heating – solar water heaters and appliance efficiency Refrigerators – appliance efficiency Communication – appliance efficiency Stand by functions In general: user behavior, Suding GTZ GACIC 08/12 /2009

Suding GTZ GACIC 08/12 /2009

Framework conditions Energy prices offer some (elt) incentives for energy efficiency behavior (mind the purchase power!) but little incentives for efficient or decentralized renewable energy technologies (solar water heater) Energy efficiency building codes exist for residential, commercial and public buildings; enforcement close to zero – new building law may help Efficiency appliance labeling implemented, partly enforced Some specific programs lately implemented, eg Substitution of incandescent lamps by CFL Support for SWH in Red sea area Suding GTZ GACIC 08/12 /2009

Prices for in Energy in Buildings / Block tariffs for electricity: 0.05 LE/kWh for the first 50 kWh per month per household, rising to 0.48 LE and 0.65 LE for each kWh consumed over 1000 kWh per month, in residences  or commercial buildings, respectively LPG costs 2.5  LE per 12.5 kg, from store (unchanged since the early 1990s), which corresponds to 0.02 LE per kWh energy! The effective price for 12.5 kg canister delivered to the apartment is between 5 and 20 LE.  Natural gas is being introduced in Egyptian households at a very competitive price of  0.15  LE/m3 for the first 15 m3, and  0,30 LE/m3 for the higher quantities. This corresponds to 0.02   and 0.04 LE/kWh rspv. ! Suding GTZ GACIC 08/12 /2009

Policy and cooperation projects Green building council created: create GB code? Gradual increase of elt prices Focusing of LPG subsidies Substitutions by NG; Some SWH activities Awareness building Capacity building Technicians Engineers & Architects Developers & Construction companies Local government authorities Pilot and demo projects Suding GTZ GACIC 08/12 /2009

Renewable Energy development and affordability Not a conflict of objectives, but a conflict of instruments as long as all petroleum products and natural gas are priced far below value, no level playing field for RE (RE appear too costly) in power generation and decentralized application. Way out: change the instruments: restrict low energy prices to basic energy (and public transport), and increase the incentives for efficiency and the disincentives for misappropriation, smuggling, and wasteful consumption Suding GTZ GACIC 08/12 /2009

www.jcee-eg.net THANK YOU For more on RE in Egypt and JCEE please see our website www.jcee-eg.net Suding GTZ GACIC 08/12 /2009

Egyptian German High Level Joint Committee for Renewable Energy, Energy Efficiency and Environmental Protection Postal Address c/o German Technical Cooperation (GTZ) GmbH 4d, El Gezirah – Street, 11211 Zamalek, Cairo, Egypt Office Address: JCEE Secretariat within in NREA compound Dr. Ibrahim Aboulnaga Street (ext of Abbas Elakad Street), Nasr City, Cairo Tel. +20 2 2270 2699, Fax +20 2 2270 2793 secretariat@jcee-eg.net www.jcee-eg.net Suding GTZ GACIC 08/12 /2009