Egyptian Blackout Hits Steel, Utilities, Transportation

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Researched by Industrial Info Resources (Sugar Land, Texas)--Toward the end of last week, steel and iron factories in Egypt's Attaqa and northwest Suez areas suffered major losses, amounting to millions of dollars, due to sudden power outages that affected about 45% of the country's grid capacity.

All iron and steel production in northwest Suez stopped; shift work ceased from Thursday morning to early Friday. The losses resulted in a one-day halt in production. Factory directors have not been willing to discuss the power crisis openly for fear of negative government reaction; the directors are hoping that the government will facilitate their participation in the new Suez Canal project. No losses in equipment or furnaces were reported.

This was the most widespread blackout in some years. In addition to steel factory stoppages, the outages caused travel chaos across the country. Water delivery, telecommunications and government-controlled TV channels also were affected. The blackout occurred during the Thursday morning rush hour and crippled metro lines, causing traffic chaos. According to the Energy Ministry, the blackout was caused by a malfunctioning circuit west of Cairo.

A ministry spokesman said that most of the power was restored by the weekend, and that the metro, water and sanitation plants are operational.

Egyptian citizens and businesses are weary of blackouts, which happen on an almost daily basis and last up to two hours. They are caused by the government's inability to secure an adequate gas feed for power plants. About 80% of the country's power output is fired by natural gas.

Addressing the nation on Saturday, Egyptian President Abdel-Fattah El-Sisi said development of production and distribution of electricity has not caught up with consumption, and the country needs an annual addition of 2,500 megawatts (MW), worth an annual investment of $2.5 billion, to meet rising demand.

Many power industry insiders believe that solar energy is a viable option for Egypt, with costs decreasing up to 90% during the last decade. Smart electricity meters also are an option to reduce consumption during peak hours.

For related information, see October 8, 2013, article-Egyptian Solar Project Attracts 23 Local and Foreign Bidders, and January 31, 2014, article - Middle East Bets Big On Solar Resources.

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