Renewable energy now accounts for 20% of Egypt’s electricity production, according to Minister of Electricity and Renewable Energy Mohamed Shaker. The percentage reflects the renewable energy production capacity that the country had targeted by 2022.
Shaker noted that Egypt has previously faced significant challenges in meeting its electricity needs, which affected all investment sectors. However, the state has placed the speedy resolution of these challenges as a top priority.
The minister added that the country’s renewable energy goals aim to eliminate power cuts and build up a safe reserve of electricity. Over the past five years, the energy sector in Egypt has managed to add over 28,000 MW of power production capacity. This comes in addition to raising the efficiency of energy networks through an integrated plan to improve and develop transmission plants.
He added that the plan includes developing and establishing high-voltage transformer stations and control centres, as well as developing and modernising electricity distribution networks.
Egypt’s electricity and renewable energy sector has taken many operational steps to achieve a complete transformation, to become more sustainable. This has had the knock-on effect of ensuring the sector meets both the steady increase in demand for electric and the country’s comprehensive development requirements.
Shaker added that a framework has been put in place nationwide, in cooperation with international experts, to diversify electrical energy production sources. This has seen a focus on improving new and renewable energy sources, to benefit from the country’s natural wealth.
It has included a strategy for the optimal technical and economical mix of energy, including maximising the use of renewable energy in Egypt’s electrical capabilities.
In order to implement this ambitious goal, many measures have been taken to encourage private sector participation in renewable energy projects. These include the setting up of government projects, encouraging independent energy producers to set up projects in Egypt, alongside competitive bidding process. It has also included the introduction of a feed-in tariff system for renewable energies, in addition to the bidding system.
Shaker emphasised that these measures have contributed to increasing the confidence of foreign and local investors in Egypt’s electricity sector. Many of these investors have submitted proposals for renewable energy sector projects.
The state has also supported competitively priced offers in the renewable energy sector, of less than 2.5 piasters per kw/h for energy produced from solar power plants and about 3 piastres per kw/h for energy produced from wind farms.