Egypt Offers Immense Opportunities in Renewable Energy Sector
Added: (Wed Dec 06 2017)
Pressbox (Press Release) -
Egypt has vast land along with ideal weather conditions for solar power. It also witnesses huge wind speeds, encouraging companies to develop renewable sources. Further, in the recent past, the country has been witnessing declines in oil and gas production, with both its LNG export terminals closed as of 2016. The country is struggling to cater its domestic gas demand and accordingly, is encouraging growth in renewable fuels. By 2022, the government aims to increase the share of renewable fuels in its power sector to 20%.
In particular, the prospects for wind energy remain strong with around 12% of power estimated to be fuelled by wind turbines. Hydro is estimated to hold 5.8% share while solar power is estimated to hold 2.2%.
According to the NREA strategy on renewable fuels, around 7.2 GW of power is forecast to be generated from wind energy. From solar energy, 3.5 GW power is planned, of which 80% will be photovoltaic.
However, achieving the government targets require substantial investments from private and foreign players. We estimate around two-thirds of investment to be made from private and foreign companies. The country continues to face tough challenges in realizing investments in both fossil fuels and renewable sectors. Dispute resolution, cash deficit, currency fluctuations remains tough challenges to be addressed to attract investments. On the wind power front, Egypt witnesses wind speeds of around 10.5m/s along its Suez Canal. Currently, the country’s wind market is characterized by presence of multi-national companies from Germany, Denmark, Spain and Japan. Further, multiple projects are under development or planned stages in cooperation with Italy, France, Bahrain, Jordan, Switzerland and the EU. Opportunities predominantly exist for equipment and services suppliers in wind turbines and wind towers sectors.
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