RCREEE Explores EMobilty Opportunities and Challenges in Cairo- Egypt

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Using EVs -particularly in public transportation sector- can have numerous economic benefits for the country including reducing the country’s fossil fuel bill, availing cheaper transportation for the citizen and creating new business lines that will stimulate the economy, a new report by the Regional Center for Renewable Energy and Energy Efficiency (RCREEE) published today finds.

“Electric Mobility Opportunities and Challenges” Report examines the current situation in Cairo and assesses the future consequences with and without e-mobility.

“In 2017, Egypt had 9.9 million registered vehicles according to Central Agency for Public Mobilization and Statistics (CAPMS). Cairo has several challenges when it comes to the usage transportation vehicles…Electric Vehicles (EVs) are a promising solution for these problems that can help to save the environment and promote local economies” states the newly published report.  It argues that E-mobility is a real opportunity to reduce emissions, climate change, and consumption of fossil fuels and thus increase quality of air and achieve several sustainable development goals. EVs are more efficient, environmentally friendly, and cheaper to maintain and drive. In addition, it can help in achieving SDG 7 clean and affordable energy.

In 2019, Egypt reported that the peak load reached 30,800 MW while the installed capacity available was 55,213 MW. (Egyptian Electricity Holding Company, 2019). By switching to EVs, these extra generation capacities will be in use without any negative impact on the peak load.

“The report is a great starting point to learn more about EVs technologies and how Egypt can benefit from it. With insightful figures, our analysis confirms that the adoption of financial and non-financial incentive schemes will positively affect the spread of EVs in Egypt. This will definitely reflect positively on the environment and reducing economic cost caused by congestion which is expected to reach 105 Billion EGP in 2030 according to World Bank,” confirms RCREEE Acting Executive Director Dr. Maged K. Mahmoud.

Up to date, Egypt doesn’t have any mandates or targets for e-mobility. Nevertheless, a number of steps has been taken to encourage EV adoption for example a decree has been issued exempting imported used EVs from custom duties (on condition that they are no more than 3 years old).

Besides, the government declared the intention to develop an e-mobility strategy to promote the usage of EVs on Egyptian roads in 2019. To encourage the switch towards EV in Egypt, the new strategy should be associated with a regulatory framework, and incentive policies.

The report concludes with a number of suggestions for financial incentives including Emission Taxes and non- financial incentives like Charging infrastructure development and Interoperability of charging Stations to support the spread of EV’s in Egypt.

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