A Looming Energy Crisis in Egypt
Egypt faces a looming energy crisis as foreign currency shortages and historical mispricing continue to strain the national budget and energy imports, warns Qalaa Holdings Chairma
Mohamed Aboelsoud 
Foreign currency shortages and mispricial policies threaten the country’s energy security.
Ahmed Heikal, Chairman of Qalaa Holdings, has warned that Egypt is facing mounting pressure from its energy sector, leaving the government with only two viable options: securing major investment deals like the Ras El-Hekma agreement or resorting to external borrowing.
Heikal stressed that the energy sector has become a heavy burden on the national budget due to the persistent need for foreign currency to import fuel and its derivatives.
He noted that the roots of Egypt’s energy crisis trace back to the early 2000s, when energy was priced unfairly and inaccurately, leading to accumulated losses and a failure to attract sufficient investment in electricity and gas infrastructure. “I warned about this mispricing in 2000, 2005, and 2008,”
Heikal said, adding that it resulted in wasted resources and diminished the state’s ability to invest in renewable energy and improve consumption efficiency. Heikal pointed out that the core issue behind the crisis is a shortage of U.S. dollars, which limits the government’s ability to secure essential energy imports, especially in a country that relies heavily on imported fuel for both industrial use and power generation.
Over the past two decades, Egypt has struggled with repeated power outages, natural gas shortages, and slow progress in renewable energy development. While the government has pursued an ambitious electricity expansion plan—including Siemens’ three mega power plants and the Benban solar complex—these
achievements continue to be hampered by foreign currency constraints, particularly in the face of global economic challenges. Without decisive policy shifts and strategic financial planning, Egypt may be on the verge of a renewed energy crisis
