adminEgypt Eyes Solar Power Expansion Amid Rising Gas Import Costs
With its abundant sunlight, vast deserts, and a well-established electricity grid, Egypt has the perfect conditions for a large-scale expansion of solar power. However, it is only now beginning to tap into this potential, spurred by a sharp increase in natural gas import costs.
A decline in domestic gas production, coupled with rising energy consumption, caught authorities by surprise last year, resulting in widespread power outages during the scorching summer months. “It has been a big wake-up call, and this is the reason why the government recently announced a big emergency package,” said Ahmed Mortada, head of energy in Egypt for the European Bank for Reconstruction and Development (EBRD).
Last year, Egypt spent over $1 billion more than anticipated on imported liquefied natural gas (LNG), and analysts predict billions more will be spent by 2025. Solar energy companies argue they can provide electricity at a much lower cost than gas turbines, using affordable solar panels from China. However, they face challenges from market-distorting power subsidies and restrictive regulations that have hindered wider adoption of solar power.
As the government looks to diversify its energy sources, the solar sector sees a promising opportunity for growth, provided regulatory hurdles are addressed.
