New Egypt Solar Energy Projects in Renewable Energy Strategy
Egypt is making strides in its renewable energy sector by advancing several solar energy projects. The Ministry of Electricity and Renewable Energy — led by Dr. Mohamed Shaker — has prioritized funding for these initiatives, focusing on solar power plants in Aswan and the Gulf of Suez. These projects are part of Egypt’s Vision 2030, which aims to increase the country’s renewable energy capacity and reduce reliance on fossil fuels.
One of the major projects is the Benban Solar Park, which is already operational and has a capacity of 1.8 gigawatts (GW). The park is expected to expand, with additional phases planned to increase its capacity further. In addition, the government is working on solar projects in Zaafarana and Kom Ombo, each with a capacity of 500 megawatts (MW). By the end of 2023, Egypt’s solar capacity included 1.5 GW at Benban, 26 MW at Kom Ombo near Aswan, and 50 MW at the Zafarana project on the Red Sea coast.
These projects are part of a broader strategy to diversify Egypt’s energy mix and reduce its carbon footprint. The government has set ambitious targets, aiming to generate 42% of the country’s electricity from renewable sources by 2035. Solar energy is expected to play a significant role in achieving this goal.
Government Support and International Collaboration for Egypt Solar Energy
The Egyptian government has been proactive in attracting investment for its solar projects. The Ministry of Electricity has been working closely with international financial institutions to secure funding for these initiatives. For instance, the European Bank for Reconstruction and Development (EBRD) has been a key partner, providing financial support for several solar projects in Egypt.
In addition to financial support, the government has also implemented policies to encourage private sector investment in renewable energy. The New and Renewable Energy Authority (NREA) collaborates with the National Project Grid-Connected Small-Scale Photovoltaic Systems (Egypt-PV) to promote small-scale solar projects (<500 kW) and support the overall solar PV market, as detailed in this Egypt Solar Panel Manufacturing | Market Insights Report. The feed-in tariff program, which offers long-term contracts to renewable energy producers at fixed rates, has been instrumental in attracting investors to the solar sector.
The Ministry of Electricity has also been working on improving the country’s transmission infrastructure to accommodate the growing share of renewable energy. Upgrades to the national grid are underway, with plans to integrate more solar and wind power into the system. These efforts are crucial to ensuring that the increased capacity from solar projects can be efficiently distributed across the country.
Challenges and Future Prospects for Egypt Solar Energy
Despite the progress, there are still challenges to overcome. The intermittent nature of solar power requires advanced grid management and energy storage solutions. The Egyptian Electricity Holding Company (EEHC) has initiated a tender process for the construction and operation of an 8.2 MW solar plant and a 2 MW/4MWh battery energy storage system in Siwa Oasis, situated in western Egypt, showing a commitment to addressing these issues, according to this report on an Egyptian Utility Initiating a Bid for a Solar Plant. The Ministry of Electricity is exploring options for battery storage systems and other technologies to address these issues.
Moreover, the government is focusing on localizing the production of solar panels and other renewable energy components. This strategy aims to reduce the cost of solar projects and create jobs in the renewable energy sector. ARECO has signed a solar panel manufacturing plant contract to further boost local production capabilities. The Ministry of Trade and Industry has been working with local manufacturers to develop the necessary infrastructure and expertise.
Looking ahead, Egypt’s solar energy sector is poised for significant growth. The country’s abundant sunshine and vast desert areas provide ideal conditions for large-scale solar projects. The Ministry of Electricity is also exploring opportunities for exporting solar power to neighboring countries, which could further boost the sector’s growth.
Egypt’s commitment to renewable energy is evident in its ambitious solar projects and supportive policies. The Ministry of Electricity’s focus on securing funding and improving infrastructure is paving the way for a sustainable energy future. As Egypt continues to invest in solar power, it is likely to become a regional leader in renewable energy, contributing to global efforts to combat climate change.