How backup power is shaping Egypt’s industrial and healthcare future

In Egypt, backup power systems have evolved from emergency measures to essential infrastructure as industries and hospitals grapple with electricity supply challenges. With rising energy demand and unreliable grid performance, critical sectors are investing heavily in battery storage, and hybrid renewable solutions. 

In the sweltering heat of an Egyptian summer, the hum of diesel generators has become a familiar sound across Egypt's industrial zones. What was once considered contingency equipment has transformed into critical infrastructure across the North African nation, where businesses and essential services increasingly rely on backup power to maintain operations amidst electricity supply challenges.

The World Economic Forum (WEF) has identified energy security challenges as significant concerns for businesses operating in the Middle East and North Africa region, with reliable electricity access being a key factor in industrial competitiveness. The scenario holds true in Egypt where a rapidly expanding population and growing economy are driving energy demand, but where power supply reliability remains a critical infrastructure concern, which is affecting the nation’s industrial development and contributing to the widespread adoption of backup power solutions.

This reality has compelled Egypt's industrial sector to invest substantially in power resilience by advancing renewable energy projects to generate 7,150 MW from wind and solar power, with added battery storage integration.

Earlier this year, Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Essmat outlined the ministry’s ongoing initiatives to ensure a stable supply of electricity, including future plans for the sector. He affirmed the government’s commitment to providing reliable power across all businesses.

Among the various industries that need adequate and reliable power supply, Egypt's industrial and healthcare sectors continue to experience electricity supply challenges. While specific details vary across industries, the broader trend reflects investments in power resilience across critical sectors.

Healthcare under pressure

The healthcare sector faces particularly acute challenges when it comes to power reliability. In a public pronouncement early this year, Prime Minister Mostafa Madbouly underscored Egypt’s commitment to invest over $1 billion to develop its healthcare sector, including equipping and upgrading healthcare facilities. This will help address the issue of modernising backup power infrastructure in healthcare facilities.

In addition, the Egypt Healthcare Authority (EHA) is pursuing  private sector partnerships to improve energy management systems within the country’s healthcare sector. The EHA is in discussions with Schneider Electric Egypt for potential collaboration to implement the latest digital solutions in energy management, automation and building management systems (BMS) as part of its efforts to improve operational efficiency and enhance energy management.

It is worth nothing that improving power resiliency is part of Egypt’s broader renewable energy transition plan for the healthcare sector. In one of the hospitals affiliated with the EHA, efforts are underway to reduce energy consumption, such as replacing fluorescent lamps with LED devices, repositioning lights to increase efficiency, and implementing energy conservation measures such as temperature and humidity control.

Moreover, the Ministry of Health and Population is also implementing a nationwide programme to upgrade backup power systems in public hospitals, with particular emphasis on facilities serving vulnerable populations. The programme aims to ensure that critical medical equipment including ventilators, surgical systems, and cold storage for medications can remain operational during grid disruptions.

The economic equation

The economic implications of backup power dependency are substantial. The energy crisis that hit Egypt last year and natural gas supply shortage have had a dampening impact on the operations of energy-intensive industries.

For instance, many companies in Egypt’s industrial sector have had to slow-down production because of the supply shortage. The sector consumes around 30% of the electricity supply in Egypt on a monthly basis. It also consumes 25% of natural gas as feedstock in some industries.

Three years ago, Egypt was one of the largest steel producers in Africa and second in MENA with an annual output of 9.8 million tons of steel. Production was affected because steel and iron industries rely on natural gas as an input, making them vulnerable to the energy crisis.

Environmental consideration

The environmental impact of Egypt's backup generator economy presents another challenge. While the country has set ambitious renewable energy goals - generate 42% of its installed power capacity from renewables by 2030 and reach 12,000 megawatts by 2026 – the proliferation of diesel generators works against these sustainability goals.

Egypt's industrial zones also represent concentrated sources of diesel emissions, with generator-related air quality impacts being particularly pronounced during periods of high grid instability. However, newer emission standards for generator systems are being gradually implemented to meet environment standards, but are facing enforcement challenges.

The path forward

Innovation may offer a pathway forward. Egypt’s government has set clear plans for the future, specifically in terms of diversifying its energy sources and reduce reliance on fossil fuels. The WEF’s Energy Transition Intelligence has also documented emerging hybrid power solutions in Egypt that combine renewable generation, battery storage and efficient backup generators. These integrated systems allow businesses to reduce reliance on diesel while maintaining operational resilience.

Moreover, Egypt has begun pilot projects integrating solar PV with battery storage at several public facilities, including hospitals and water treatment plants. These systems are designed to work alongside traditional backup generators, reducing fuel consumption while maintaining reliability during extended outages.

As Egypt continues its challenging journey toward energy security, the backup generator remains both a symbol of resilience and a reminder of infrastructure development needs. For businesses and healthcare providers, these systems represent a necessary investment to bridge the gap between current grid capabilities and the requirements of a growing economy—ensuring that when the lights go out, the nation's most critical functions continue uninterrupted.