Egypt is shifting its focus to solar power generation after a significant increase in natural gas import costs.
The country’s declining domestic gas production and growing consumption led to rolling blackouts last summer, prompting the government to announce an emergency package.
According to Ahmed Mortada, head of energy in Egypt for the European Bank for Reconstruction and Development (EBRD), the crisis served as a wake-up call for the government.
Egypt spent over $1 billion more than expected on imported liquefied natural gas (LNG) last year and is projected to spend billions more in 2025.
Solar companies argue that they can provide electricity at a lower cost than gas turbines, utilizing affordable panels from China.
However, they claim that power subsidies and restrictive regulations have hindered the rollout of solar projects.
Hussain Al Nowais, chairman of UAE-based renewables energy producer AMEA Power, highlighted Egypt’s abundant solar resources and land availability, saying, “God has blessed Egypt with really good solar resources, and very good land resources.”
