Egypt signs 10GW solar project with Chinese company!

Recently, Egypt signed a memorandum of understanding with a Chinese company. The two parties will jointly develop a large-scale solar project with a scale of 10GW, aiming to increase the renewable energy capacity of the most populous Arab country and reduce its dependence on fossil fuels.

The agreement was signed by Egypt's New and Renewable Energy Authority, Egypt Electricity Holding Company and China Electric Power Equipment Co., Ltd. in the presence of Egyptian Prime Minister Mostafa Madbouly.

"This agreement is part of a strategy to increase renewable energy capacity and limit the use of fossil fuels, in line with Egypt's national sustainable development plan," the Egyptian cabinet said in a statement.

After the project is completed, it is expected to produce 29,784GWh of clean energy every year and reduce 14 million tons of carbon dioxide emissions.

The statement added that the project is a grid dedicated to renewable energy projects as part of Egypt's "Green Corridor" initiative. Once completed, it will save US$1 billion in natural gas costs annually.

Mohamed Shaker, Egypt's Minister of Electricity and Renewable Energy, said at the signing ceremony: "Egypt has adopted an ambitious plan to upgrade the power industry in different areas, including maximizing the use of renewable energy and encouraging foreign and local private sector investment. "

Earlier in 2023, Mohamed Shaker said that Egypt's wind power capacity could reach 350GW and solar power capacity could reach 650GW.

Egypt claims that its total renewable energy potential reaches 1TW, which is huge news for Egypt’s renewable energy sector. Realizing this potential, however, is another matter entirely, especially given Egypt’s laggard in the renewable energy sector to date.

Egypt is one of the largest photovoltaic markets in Africa, with abundant sunlight resources and vast land. In recent years, the Egyptian government has been actively promoting the development of the solar photovoltaic industry.

Egypt's goal is for renewable energy to account for 42% of the country's total electricity demand by 2030, and for renewable energy to account for 60% of the country's total power generation by 2040.