Relevance of IEE in the current Egyptian context
It is widely accepted nowadays that the cheapest and fastest method to combat an energy crisis is to improve consumption patterns so they would become more efficient. There are several approaches to improve the energy efficiency in an industrial facility. Typically, business owners and factory managers’ approach to improve energy efficiency is to use more efficient equipment.
Egypt’s energy market does not promote energy efficiency as the energy subsidies are very high and therefore the amount of energy saved by efficient equipment does not compensate the difference in price between efficient piece of equipment and a less efficient one.
With energy prices volatility represented by an increasing political will to decrease subsidies as well as the lack of fuel/electricity availability, the industrial sector evaluates the opportunity cost of improving efficiency in a different way.