On December 2, the pilot project for distribution network loss reduction in South Cairo, Egypt, led by China Southern Power Grid International Co., Ltd., officially passed the acceptance test by the South Cairo Electricity Distribution Company (SCEDC). The overall line loss rate in the pilot area decreased from 17.6% to 6%, achieving an average daily reduction in power loss of approximately 15,000 kWh. This project is China Southern Power Grid's first overseas distribution network loss reduction pilot project, marking the first systematic overseas implementation and successful verification of China Southern Power Grid's advanced lean management experience in line loss management. The project received high praise from the Egyptian Ministry of Electricity and SCEDC. Deputy Minister of Electricity Sabah al-Mashali stated, "China Southern Power Grid is the company that can truly solve problems."

Assault

From "chaos" to "clarity": Uncovering the assets of a 30-year-old aging network through field surveys

The project was launched in September 2024 and faced historical problems such as missing records and chaotic household registration relationships in Egypt, where the power grid had been in operation for over 30 years. The project team of China Southern Power Grid International Co., Ltd. worked closely with SCEDC, using the mature "four-part line loss" (regional, voltage, line, and distribution area) distribution network management system of China Southern Power Grid as a blueprint, and combined with local conditions to innovatively extend the "low-voltage branch" dimension, and build a five-part line loss control system that progresses from macro to micro, and launched a tough campaign to "take stock of the situation".

The team for the pilot project for distribution network loss reduction in South Cairo, Egypt conducted on-site research

The project team conducted a thorough on-the-ground survey of all eight 11 kV lines, 40 transformers, and 11 low-voltage users supplied by public transformers on the two feedback lines at the low-voltage level within the pilot area—the Abou Rawash industrial zone. After meticulous verification, surveying, and recording, the team finally produced an accurate "power grid topology map," thoroughly clarifying the long-standing confusion regarding the correspondence between transformers and users. The completion of this foundational work has brought regional power distribution network management from "chaos" to "clarity," laying a reliable data foundation for subsequent line loss analysis, system construction, and large-scale promotion.

Empower

Technology adaptation + talent cultivation: Implementing the "Southern Power Grid Solution" tailored to local conditions

Once the "symptoms" are understood, the "medicine" can be prescribed accordingly. In response to the pain points of low automation in the distribution network and inefficient line loss management in Egypt, the project team began to deploy a complete set of China Southern Power Grid metering automation system, building an integrated smart metering system of "master station - terminal - carrier - meter" covering 12 typical electricity consumption scenarios. The system enables automatic collection and closed-loop management of electricity consumption data, providing strong technical support for SCEDC to carry out routine and standardized line loss management.

The project team conducts a daily equipment inventory before construction

To ensure the long-term sustainability of loss reduction efforts, cultivating the comprehensive capabilities of personnel at SCEDC has become a key solution. Through systematic training, co-location office arrangements, weekly joint line loss analysis, and various other forms, the project team has unreservedly transferred technology, skills, and management experience to SCEDC. This has helped SCEDC build its own capacity in smart meter application and line loss analysis and governance, fostering a “self-sustaining energy talent team.” This “teaching to fish” cooperation model has enabled SCEDC to shift from relying primarily on external support in the early stages of the project to achieving localized, independent operation and maintenance, establishing a sustainable cooperation mechanism.

The project team showcases tools and typical construction scenarios to the Chairman of SCEDC

The project team conducts training for personnel from SCEDC

From on-site surveys and training assessments to warehouse joint debugging, precise construction, and debugging for defect elimination, the project team implemented standardized, preemptive, and closed-loop management throughout the entire process. This has culminated in a replicable and exportable system for implementing overseas loss reduction projects.

Today, the comprehensive line loss rate in the region has decreased by over 11 percentage points, representing a relative loss reduction of more than 70%. Key indicators such as the online rate of terminals and meters and the success rate of meter reading have exceeded 99%, and 15-minute granularity distribution network visual monitoring has been achieved. The “CSG Solution” has yielded solid, visible, quantifiable, and reusable results in a short period.

Verify

“Small Investment” Drives “Significant Results”, Laying the Foundation for Scalable Promotion

The head of the distribution network area in the AI Haram of the South Cairo Electricity Distribution Company (SCEDC) stated that the pilot project “completed construction and trial operation within the agreed scope, achieving the expected loss reduction targets through technical and management means,” offering full affirmation of the “CSG Solution.” The practical execution and meticulous implementation of this pilot project have successfully verified the adaptability, reliability, and scalability of China Southern Power Grid’s distribution network loss reduction technical solutions and management system in complex overseas environments. This strategy of “seeing the big picture in a detail and using a small-scale example to illustrate a broader principle” has effectively mitigated the technical and investment risks associated with direct large-scale investments, laying a solid empirical foundation for deeper cooperation in Egypt.

Dr. Mohamed Shaker El-Markabi, Deputy Minister of Electricity and Renewable Energy of Egypt, inspected the project and gave it his praise

The pilot project for distribution network loss reduction in South Cairo, Egypt, has not only delivered significant energy-saving and consumption-reduction benefits to the region but also provided a validated, scalable systematic solution. It contributes a mature and reliable “Chinese Solution” and “CSG Wisdom” to the digital upgrade of distribution networks in Egypt and even across African countries, vividly illustrating the cooperative principles of “extensive consultation, joint contribution, and shared benefits” under the Belt and Road Initiative.

Building on the success of the pilot project, China Southern Power Grid International Co., Ltd. and The South Cairo Electricity Distribution Company are engaged in in-depth discussions on deeper cooperation, which is expected to inject stronger “Chinese Momentum” into the upgrading of energy infrastructure in Africa.