Egyptian Electricity Holding Company (EEHC)

EEHC claims to have a vision to achieve “world class leadership for sustainable electrical energy”. Despite the planned deployment of nominal amounts of renewable energy capacity between 2022 to 2027, without any absolute emissions or emissions intensity targets in place, EEHC is lacking a key sustainability performance indicator. Without emissions targets extending to 2050 and beyond, and intermediary targets to track its progress, EEHC will not be able to measure and monitor the progress of actions taken to achieve its vision.

EEHC aims to expand its renewable capacity to reach 20% of peak load in 2022, and 42% in 2035. Despite this, EEHC does not publish its total mitigation research and development (R&D) expenditure in the reporting year, or any mitigation R&D expenditure on non-mature technologies. EEHC does not publish it total fossil-fuel and low-carbon electricity portfolio development CapEx for the reporting year, or the next five years. Nor provide these values for low-carbon electricity portfolio development alone. Without indication of any associated investment, it pulls in to question how EEHC aim to achieve these targets, and its commitment.

EEHC does not mention or acknowledge climate change in its annual report, lacks a transition plan and does not indicate its intension to publish one. Despite claiming its vision aiming to deliver a “world class leadership for sustainable electrical energy”, no evidence of any management leadership or concrete plans to deliver this objective are present. If EEHC aims to avoid further deviating from its 1.5°C pathway, and the extent and how strongly it exceeds its carbon budget by, it should acknowledge climate change, implement oversight of climate change issues, and introduce a transition plan, transitioning it towards decarbonisation.

EEHC has no plans to decarbonise or emissions reductions targets. EEHC aims to develop 2.4 GW of hydro pump and storage, and has signed contracts for 0.4 GW of solar and 0.5 GW of wind projects. It is also investing in a 2.36 GW CCGT project. Whether for climate, or fuel diversity, remains unclear.

EEHC does not have a transition plan. As a state-owned monopoly the company it is responsible for delivering the Ministry of Electricity and Renewable Energy’s target to achieve 20% renewable energy of peak load by 2022, and up to 42% by 2042.

EEHC is still investing in fossil-fuel power generation. In 2020, EEHC’s capacity was dominated by 87% gas-fired power capacity, with 88% of gas-fired power in its generation mix. Renewables only account for 8% of EEHC’s capacity, and 10% of its generation mix.

EEHC reduced its scope 1 and 2 emissions intensity by 5.5%, from 468 gCO2/kWh in 2015 to 442 gCO2/kWh in 2020. This emissions trend was not aligned with the company’s 1.5°C pathway which requires a 6% annual reduction. EEHC’s 2012-17 plan included the addition of 27.4 GW of thermal and hydro plants.

EEHC’s “9th Five-year Plan (2022-2027)” primarily focuses on the development of 2.36 GW of gas-fired capacity, and near equal amounts of hydro pump and storage capacity (2.4 GW). New renewable development, only account for 16% of EEHC’s total generation capacity development between 2022 and 2027.