The Egyptian government plans to attract foreign investments worth $4 billion in the renewable energy sector next year.
Government sources told Al Arabiya Business that the targeted plan will depend entirely on the private sector, and differs from the existing projects that have been contracted or are currently under development, which include projects implemented by Saudi Arabia’s Aquapower, the UAE’s EMEA Power, Norwegian SCATEC, and the Orascom Alliance.
The sources added that the targeted plan was reviewed with international companies of Japanese, French, Chinese, German, Italian, Spanish and American nationalities, and they expressed their desire to cooperate, invest and implement projects to produce electricity from solar and wind energy. It is expected that meetings will be held with representatives of the companies before the end of next December.
The sources explained that the initial discussions held with representatives of the companies included presenting the features of the investment plan, the area of ​​land available to establish the stations under the usufruct system, and the investment benefits and incentives for renewable energy projects in accordance with the decisions of the Egyptian Council of Ministers.
The sources indicated that the initial meetings held with representatives of foreign companies also included a presentation of the investment mechanisms and contractual systems currently in effect in Egypt, as well as a review of the model of the Benban solar energy complex that was implemented in Aswan Governorate.
The Egyptian government is targeting an ambitious plan to raise the contribution of renewable energy to the total electricity produced on the electrical grid by more than 40% by 2035. The plan depends on adding electrical capacity from projects implemented by the private sector.
Last week, Egyptian Minister of Electricity Mahmoud Esmat discussed the action plan to modernize the electricity network, add new power generation capabilities, and stimulate the transition to clean energy.
The plan aims to raise the contribution of renewable energy to the energy mix to 42% by 2030, instead of 2035, with the addition of 2.5 gigawatts of solar and wind energy projects in partnership with the private sector.
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