This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/9/2019
Overview
Egypt possesses an abundance of land, sunny weather and high wind speeds, making it a prime location for renewable energy sources. The renewable energy equipment market is potentially worth billions of dollars.  The Government of Egypt is cognizant of the need for a sustainable energy mix to both address increasing demand, and to move to a more environmentally sustainable and diverse electricity sector. The 2035 Integrated Sustainable Energy Strategy, which builds on previous strategies, emphasizes the importance of renewable energy.  Egypt intends to increase the supply of electricity generated from renewable sources to 20% by 2022 and 42% by 2035, with wind providing 14 percent, hydro power 2 percent, and solar 25 percent by 2035. The private sector is expected to deliver most of this capacity.

The New & Renewable Energy Authority (NREA) plays a strategic role in implementing the government’s renewable energy plans. It currently has about 500 MW of wind power plants in operation and 1340 MW under development and implementation and is expected to contribute substantially to the rapid expansion of wind power capacity. There are also three privately owned independent power producers (IPPs) with total generation capacity of about 2.5 GW, which started operations 2002-2003 under 20-year long power purchase agreements with EEHC. The Egyptian government renewable energy plan for 2015-2023 include 3.2 GW of government projects; including 1.25 GW under BOO mechanisms and 920 MW as IPPs.

Wind Energy

Egypt enjoys excellent wind along the Gulf of Suez with an average wind speed of 10.5 m/sec, and Egypt is just one of 38 countries in the world with a published National Wind Atlas.
Since 2001, a series of large-scale wind farms have been established, with total capacity of 1.2 GW, in cooperation with Germany (KFW), Denmark (DANIDA), Spain (Siemens Gamesa), and Japan (JICA). Implementation of the Spanish project in Jebel El Ziet took place in 2013.
In 2014 the implementation of a JICA wind project started with expectations to raise imports by USD 200 million. Another 540 MW project is under construction at Gulf of Suez, a 580 MW project is in financing also at the Gulf of Suez and a feasibility study is under way for a 200 MW project at West Nile.  Additionally, more projects are under preparation in cooperation with Germany, AFD, EIB and EU (200 MW), MASDAR (200 MW), Germany and AFD (200 MW), and Japan (200 MW).

Recently, the GOE allocated an area of about 7,845 square kilometers in the Gulf of Suez region and the Nile Banks for NREA to implement additional wind energy projects. Launched in 2017, the Ras Ghareb windfarm project, near the Gulf of Suez (approximately 30 km north-west of Ras Ghareb) is expected to come online in 2019, produce 262.5MW, and supply power to approximately 500,000 households.

Solar Energy

Egypt’s Solar Atlas states that Egypt is considered a “sun belt” country with 2,000 to 3,000 kWh/m2/year of direct solar radiation. The sun shines 9-11 hours a day from North to South in Egypt, with few cloudy days.
The first Solar Thermal Power Plant at Kuraymat was built in 2011. It has a total installed capacity of 140 MW, with solar share of 20 MW based on parabolic-trough technology integrated with a combined-cycle power plant using natural gas. The power plant is financed from the Global Environmental Facility (GEF) and the Japan Bank for International Development.  A 10 MW power plant has been operating in Siwa since March 2015, and the remaining plants are expected to be implemented and operated consequentially.  The 37 square kilometer Benban Solar Park in Egypt’s Western Desert added 800 MW in total installed capacity through 2018, with financing provided by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and other international financial institutions the 32 individual 20 – 50 MW plots will supply 1.5 GW to the grid when the park achieves full capacity by the end of 2019.

Leading Sub-Sectors
  • Wind turbines
  • Wind towers
  • Photovoltaic panels and related technologies
  • Concentrated solar power equipment and technologies

Opportunities
In 2012, GOE approved the Egyptian Solar Plan, which includes adding 3.5 GW (2.8 GW CSP and 700 MW PV) of solar energy by 2027. The Ministry of Electricity and Renewable Energy signed seven memoranda of understanding worth USD 500 million for solar and wind projects in Egypt. GOE announced an interim target for the first regulatory period (2015-2017) to contract 4,300 MW of both solar and wind energy, and a feed-in tariff (FIT) which will allow Egypt to procure 4.3 GW of solar and wind power production by 2017. Its breakdown is as follows: 300 MW for small solar systems, 2,000 MW of medium- and large-size solar plants, 2,000 MW of medium- and large-size wind plants.

According to the Wind and Solar Atlas, there are opportunities and potential for Wind and Solar plants in the East and West Nile areas that will produce around 31,150 MW from wind and 52,300 MW from solar. Egypt is also considering financing options to conduct feasibility studies for the following projects:
  • Solar-thermal power plant using CSP technology for both electricity generation and water desalination. Solar-thermal power plant for industrial purposes.
  • Designing a technical-financial mechanism to promote the use of solar water heaters in Egypt’s residential sector. Local manufacturing of renewable energy equipment.

Web Resources
 
Contact for the Commercial Specialist in charge of the Renewable Energy Sector: Dina Bissada, Dina.Bissada@trade.gov
 
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More Information

Egypt Energy Trade Development and Promotion