Egypt Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Generation - Source (Conventional Thermal, Hydro, and Non-Hydro Renewable) and Transmission & Distribution
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Egypt power EPC market is expected to grow at a CAGR of more than 2.5% during the forecast period of 2020-2025. Factor such as increasing energy demand in the country and government projects to fill the energy gap in the country is likely to drive the Egypt power EPC market during the forecast period. However, the lack of domestic investment and investors in the concerned sector is expected to restrain the Egypt power EPC market during the forecast period.
The conventional thermal segment, due to its most significant energy generating capacity in the country, held a considerable market share in 2018 and is expected to dominate the market during the forecast period.
Egypt has set a target to achieve 20% and 40% of energy from renewable by 2022 and 2035, respectively. This is expected to create several opportunities for the Egypt power EPC market in the future.
Ongoing and upcoming projects to fill the energy gap in the country are likely to drive the Egypt power EPC market during the forecast period.
Scope of the report
The Egypt power EPC market report include:
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Key Market Trends
Conventional Thermal Segment Expected to Dominate the Market
Conventional thermal is the power that is generated through various sources such as coal, natural gas, oil, and nuclear. In the case of Egypt in 2018, approximately more than 90% of the electricity was generated from conventional thermal power which includes only natural gas and coal.
In July 2018, Egypt marked the completion and commissioning of its three new gas power plants in the location Beni Suef, Burullus, and New Capital. Power plants were built In collaboration with the Egyptian Ministry of Electricity and Renewable Energy, Siemens and its consortium partners, Orascom Construction and Elsewedy Electric. All three power plants have a power generating capacity of 14.4 megawatts (MW).
In 2019, Mitsubishi Hitachi Power Systems, Ltd. (MHPS) was awarded a contract of up-gradation of Sidi Krir and El Atf thermal power plants in Egypt. Both the power stations are natural gas-fired and have an output capacity of 750 megawatts (MW). The up-gradation is done to increase the efficiency, output, and reducing downtime of the power plants. The operations in the pants are expected to begin by the first quarter of 2021 after the up-gradation.
Therefore, owing to the above points, the conventional thermal segment is expected to dominate the Egypt power EPC market during the forecast period.
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Ongoing and Upcoming Projects Expected to Drive the Market
In 2018, the total electricity generation from the various sources of the power sector in Egypt was 200 terawatt-hours (TWh). Different energy sources contributing to the country's energy generation include natural gas, oil, wind, hydro, and solar energy.
In 2018, the energy consumption of the country was 94.5 million tons of oil equivalents, which is likely to increase in the future. The increasing energy consumption in the future is expected to be filled by increasing the total installed capacity and power generation by ongoing and upcoming projects. Renewable energy installations such as solar and wind have recently seen a hike in the country's power generation share.
In 2018, laying off the high voltage direct current (HVDC) cables under EuroAfrica Interconnector Project started. The project focuses on connecting three countries, i.e., Egypt-Cyprus-Greece. For the first phase, Egypt and Cyprus are being connected with a 1000 megawatts (MW) capacity of HVDC cables. The first phase of this project is expected to be complete by 2022.
In December 2019, AMEA Power signed the power purchase agreement (PPA) with the Egyptian Electricity Transmission Company to install 200 megawatts (MW) of a solar PV plant and 500 megawatts (MW) of wind energy installations. The solar and wind projects are expected to be complete by 2021 and 2023, respectively.
Hence, owing to the above points, ongoing and upcoming projects are likely going to drive the Egypt power EPC market during the forecast period.
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The Egypt power EPC market is moderately fragmented. Some of key players in this market include Siemens AG, Mitsubishi Corp (Mitsubishi Hitachi Power Systems), AMEA Power LLC, ElSewedy Electric Co, and General Electric Company.