Electricity price for cars will be sold without subsidy

Mohamed Farag
5 Min Read

The Minister of Electricity, Mohamed Shaker, informed Daily News Egypt that the tariff for recharging electric cars will be the real cost without any subsidy, adding that electric cars provide a better level of reducing greenhouse gas emissions, and improve the environmental impact of generating electricity, and do not add more burden on the state budget by subsidising the cost of energy.

He added that the ministry of electricity does not have any problem in the provision of energy for cars, especially as there is a surplus in the daily production up to 2,500 MW.

Furthermore, Shaker explained that the ministry is not reluctant to supply electricity to all participants, but does not provide units for recharging electric cars, as the ministry’s role is only to provide electricity.

The Egyptian Electricity Holding Company (EEHC) has agreed to set up a pilot project to establish electric cars’ recharge stations in a number of its affiliated areas, within the scope of electricity distribution companies.

EEHC Head, Gaber El Desouky, said that the company agreed to contract with a private company to provide electric vehicle charging units as a pilot project, and if proves successful, it will be applied in all the EEHC’s subsidiaries.

El Desouky clarified that the ministry will not currently contract to purchase electric cars but will provide recharge units, especially as electric cars are arriving in Egypt.

He elaborated that the controls, mechanisms, and rules governing the implementation of recharge stations are still under discussion, and the sector is ready to provide electricity to all participants who have secured a surplus, and enough reserve to meet all sectors’ needs of electricity.

In early February, Revolta opened the first recharge stations in Egypt and Norh Africa, in cooperation with the National Petroleum Services Company, and Schneider Electric.

Revolta aims to implement 65 recharge stations in seven governorates, with investments of over EGP 65m, and to reach all areas in Egypt by 2020. The price of used electric cars from 2014 and 2015 range from EGP 250,000 and EGP 300,000, while the price of new cars amounts to EGP 600,000.

Despite their relatively high prices, Revolta’s president predicted that electric cars would be very popular in the Egyptian market because of their low operating cost, the lack of need for periodic maintenance, compared with cars equipped with internal combustion engines.

A number of Chinese, Italian, and German companies have begun negotiating with Egyptian institutions to supply power units by next year.

An official with a Chinese company said that the company has partnered with an Egyptian company to become its agent in the Egyptian and African market, and provide recharge units for electric cars with different capacities.

He explained that the Chinese company provides many recharge units of different models and different prices.

Revolta opened the way for German companies to supply their products in the Egyptian market, as three German companies negotiated with Egyptian institutions for the supply of electric cars and buses recharge units.

The former Head of Egyptian Electricity Regulatory Authority, Hafez Salmawy, said that electric cars have many advantages, such as reducing reliance on fuel, cutting emissions, and rechargeable batteries.

He explained that the disadvantage of electric cars is their relative high prices, which may start at $35,000 (EGP 650,000).

Salmawy added that charging the battery requires a period of 6 to 8 hours which is enough to power the car to 160-200 km.

The calculation of the cost of kilowatt used in electric cars differs depending on the amount of electricity consumed by each battery, aside from the cost of electricity itself.

A number of importers went to the Chinese market to import electric cars after their prices fell—compared to European markets.

Mamdouh Salah, a car dealer, said that used electric cars in China models in 2015 and 2016 do not exceed $10,000 (EGP 190,000), which could suit the purchasing power of Egyptians. The cost of a small recharge unit amounts to EGP 100,000 which consumers can keep at their homes.

He stressed that the Egyptian market is large and can absorb many electric cars. Salah pointed out that he is preparing to purchase 200 used electric cars from China next year, and will provide them to citizens with different instalment schemes.

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