Improv. Oper. Eff. Exist. Power Plants


  • Reference: P-EG-F00-002
  • Approval date: 16/05/2011
  • Start date: 09/05/2013
  • Appraisal Date: 22/07/2010
  • Status: OngoingOnGo
  • Location: Egypt


The purpose of the Power Plants Efficiency Study is to identify opportunities for EEHC to improve the efficiency, reliability, availability output and operating life of one or two steam-cycle thermal power plants. More specifically, the study will determine the operating conditions of the subject plants, identify key issues and make recommendations regarding specific operating interventions which improve plant performance, adaptation of best O&M management practices and potential rehabilitation of the plants. EEHC has selected two units to be included in the study; namely Unit No. 2 of Attaka thermal power station (2x150 MW) in Suez Governorate and Unit No. 1 of Shoubra El-Kheima thermal power station (4 x 315 MW) in Cairo. Nonetheless, the findings of the study are expected to be benefit other steam plants in the country. The study consists of three related activities:

(i) Assessment of plant(s) operating conditions;

(ii) Review of O&M management practices; and

(iii) Training and capacity-building.


The project aims at supporting Egypt's efforts towards improving energy efficiency by assessing the potential for supply-side energy efficiency improvements in the power generation sector. Efficiency improvements will subsequently lead to less use of fossil fuels for power generation with the related environmental gains. It will also enhance the economics of fossil-based power generation, hence helping the utility to continue to provide affordable electricity to the Egyptian population.


The Government of Egypt has recognized that the availability of reliable power supply is essential for economic and social prosperity and human development as well as for attracting private sector investments in the country. The Government has therefore a clear policy of securing sustainable and reliable supply of power to all sectors of the economy. To meet the rapidly growing electricity demand the government has successfully expanded the power supply capacity. At the same time the Government has also emphasized energy efficiency and development of renewable energy. The benefits of such efforts for Egypt go beyond the energy sector as they result in cleaner environment, transfer of advanced technologies, and possible new areas of manufacturing and services.

There is also a global benefit which is of special emphasis in the Bank's agenda. Egypt's programs in energy efficiency and renewable energy reduce the country's carbon footprint and contribute to the international agenda on climate change. Egypt has been proactive in demonstrating its willingness to cooperate with the international community in this area. The international community has been in turn supportive of Egypt's efforts as indicated in the financial and technical cooperation in various power projects.

Egypt is trying to address energy efficiency on both the demand and the supply sides. Energy efficiency is a powerful tool in that it brings a range of economic and environmental benefits. Economic competitiveness, energy security, fiscal expenditure savings, and local and global environmental benefits are among the demonstrated benefits of energy efficiency. Recognizing these benefits, the Government has prepared a National Energy Conservation plan that deals with the demand-side issues. The efficiency measures include pricing schemes as well as technological programs such as efficient lighting scale-up that is being carried out in association with the electricity distribution companies. Among other activities, there is also an energy efficiency program for small and medium enterprises which is under implementation by the Credit Guarantee Company.

The Government's commitment to the supply-side efficiency is demonstrated by programs to reduce transmission losses as well as utilizing more advanced technologies. A prominent example of such efforts is the implementation of the 600-MW Ain-Sokhna thermal power plant, which represents the first power plant based on super critical boiler in the Middle East and North Africa region. The proposed MIC Trust Fund activity is a product of the current Bank dialogue in Egypt and thereby complements the Bank's current and planned energy operations. In addition to financing the new plants the Bank is aware that there may be significant potentials for efficiency improvement in the older existing power plants. The review of the older plants should also examine whether there are any safety concerns. Accordingly the proposed MIC Trust Fund Program is designed to preparation of a roadmap and action plan for improving the efficiency of power plants and the operation and maintenance practices of EEHC.


The proposed Study is expected to help Egypt in examining the efficiency of its fossil-fuel power plant operations against international standards. The outcomes of the program are expected to include: (a) rather immediate improvement in the efficiency of the power plant by replacement or rehabilitation of certain plant components; (b) increase in efficiency of the plant management through the adoption of best practices; (c) strengthening the institutional and technical capacity by transfer of knowledge about plant operation and maintenance management; and (d) a demonstration effect which would transfer the knowledge and the best practice to other power plants owned by EEHC.

Key contacts

EL-ASKARI Khaled Mohamed Samir - ONEC2


Finance source Amount
MICFUAC 490,400
GovernmentUAC 42,000
DeltaUAC 100
TotalUAC 532,500