Another country has shown its new energy ambitions.
Egypt has a wind power capacity of up to 350GW and a solar power capacity of up to 650GW, announced Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker at the 4th Egyptian Green Hydrogen Industry Roundtable hosted by Egyptian Prime Minister Mostafa Madbouly.
Egypt's declaration that the total potential of renewable energy reaches 1 TW is a major news for Egypt's renewable energy sector. Realizing this potential, however, is another matter entirely, especially given Egypt's backwardness in the renewable energy sector to date.
Egypt is one of the largest photovoltaic markets in Africa, with abundant sunshine resources and vast land. In recent years, the Egyptian government has been actively promoting the development of solar photovoltaic industry .
Egypt's goal is that renewable energy will account for 42% of the country's total electricity demand by 2030 and 60% of the country's total electricity generation by 2040.
Egypt's renewable energy production accounts for 29.6% of the total energy mix, reaching a peak of about 10GW in 2022. Statista reported that Egypt's total renewable energy capacity reached 6,322 MW by the end of 2022, an increase of about 1% over the previous year.
According to a third-party forecast, Egypt's renewable power generation capacity is expected to increase from 3.51 GW in 2020 to 13.7 GW in 2030, with a compound annual growth rate (CAGR) of 14.6%.
In order to promote the development of the photovoltaic market, the Egyptian government has also introduced a series of preferential policies, such as providing land, tax relief, preferential purchase of electricity and so on. Initiatives
to
increase the share of renewable energy In order to accelerate the adoption of renewable energy, Egypt recently updated its INDC, aiming to advance the goal of 42% renewable energy in energy production by 2030, instead of 2035 as previously set, which means that the timeline is ahead of schedule. Egypt aims to secure grants and soft financing worth € 500m ( $548m)
as a contribution to the Water, Food and Energy Nexus project. This project was carried out within the framework of the NDC update of the network development plan.
Egypt has also promoted the development of green hydrogen many times. At the COP27 conference, Egypt signed eight framework agreements for the development of green hydrogen and green ammonia projects with some well-known industry partners. Egypt is now one of the largest destinations for foreign direct investment in mega-projects, thanks to large-scale capital investment in 17 green hydrogen projects, which account for 97% of Egypt's total inbound capital investment in 2022. In
2023, thanks to government measures and the efforts of other stakeholders, Egypt made significant progress in achieving its renewable energy goals. Compared to previous years, progress in 2023 was significant, with a number of important milestones achieved in the renewable energy sector, demonstrating Egypt's steady steps towards a greener future.
At the recent roundtable, Egypt's oil minister expressed confidence that green hydrogen will be one of the most promising areas for Egypt to achieve its sustainable development goals. In December
last year, the European Investment Bank agreed to provide a framework loan to Alex Bank, a subsidiary of Intesa Sanpaolo Group, under the framework of Egypt's Green Economy Financing Mechanism, to finance the private sector of green economy projects. The content includes energy efficiency, renewable energy and important climate action.
Earlier, the European Investment Bank and AlexBank announced the signing of a new batch of renewable energy and energy efficiency financing agreements worth $15 million under the Egyptian Green Economy Financing Mechanism initiative. The Red Sea Wind Project, with funding support from the
European Bank for Reconstruction and Development, is also contributing to Egypt's green transition. The US $100 million loan from the European Bank for Reconstruction and Development will be launched in 2023 for the construction of a 500 MW onshore wind power plant in the Gulf of Suez region, of which US $50 million will be provided by the Green Climate Fund and US $50 million by the European Bank for Reconstruction and Development. In terms of
price, the electricity price of photovoltaic projects in Egypt is relatively high, mainly due to the higher subsidies provided by the government for photovoltaic projects. However, with the continuous progress of photovoltaic technology and the expansion of production capacity, the price of photovoltaic electricity is expected to gradually decline.
In recent years, the Egyptian photovoltaic market has attracted the participation of many international and domestic enterprises, such as China's Jingao Science and Technology, Trina Solar Energy, Jingke Energy, Atlas, Zhengtai, and local enterprises in Egypt. Uch as Sinophos, Energi Mega Power, etc. In March
this year, Jingao Technologies announced a partnership with AMEA Power, one of the largest developers in the United Arab Emirates, to join forces with a consortium of China Nengjian Group, Nengjian International Group and Zhejiang Thermal Power to provide an overall solution for its gigawatt wind and solar energy projects.
Among them, the Egyptian Kom Ombo Abydos photovoltaic project is 560 MW, which will be the largest single photovoltaic power generation project in Africa after completion. Jingao Technology will supply all DeepBlue 3.0 Pro high-efficiency components for the project. The project was successfully started in January 2023 and is expected to be completed within 19 months. In terms of
major photovoltaic projects, the Egyptian government has also promoted a series of major photovoltaic projects, such as the 1 GW solar photovoltaic project in Aswan Province and the 2 GW solar photovoltaic project in Suez Province.
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