Development Of Renewable Energy In Egypt: Opportunity For The Italian Industry

Development Of Renewable Energy In Egypt: Opportunity For The Italian Industry

Planned investments for over $ 10 billion in 2020 thanks to the objective of the Egyptian government to produce at least 20% of electricity with the sun and the wind. The state of the art of renewable energy sector in Egypt at today RES4MED’s International Conference.

Egypt is going through a phase of political and social transition exacerbated by continuing energy crises. The rapid growth of energy consumption – a market of almost 90 million customers and an annual growth rate of electricity demand of 7% in the last decade – has created an unsustainable pressure on public finances, forcing the Egyptian government to rethink subsidies policy for energy prices.

To address the chronic shortage of electricity and the forecasted growth of electricity consumption, according to the estimates presented at the conference, the country would need to install 13 GW of additional generation capacity in just 5 years and can no longer count, as in the past, on domestic natural gas and oil production, due to the decline in national oil and gas production and to the decrease in imports.

Egyptian energy policy makers presented the plan of development of renewable energy, which provides several mechanisms to attract investment, estimated at least $ 10 billion in 2020; in particular has been shown in detail the feed-in tariff scheme – recently launched to accelerate the installation of at least 2.3 GW of solar power and 2 GW of wind power by 2017 in order to achieve the Egyptian Government’s objective to produce at least 20% of electricity from renewable sources by 2020.

Investors, financial Institutions, banks and technology providers discussed challenges and opportunities for investment in renewable energy sector; the issues of integration into regional power systems; the mechanisms of auctions and feed-in tariff, hurdles for bankability and project financing and the role of technology providers to increase the competitiveness of renewables in Egypt. Considering the Egyptian government’s openness to private foreign investors, all the conference participants have confirmed the attention given to the country in the coming years.

The conference also provided the opportunity to present for the first time the IRENA’s “Coalition for Action”, an initiative created to “debunk the myths” that still penalize renewable energy. Christian Kjaer presented some “facts” that show the groundlessness of some factors perceived in the Egyptian context, related to economic competitiveness, reliability and maturity of renewable technologies. Enel Green Power and RES4MED are among the founding members of the Coalition.

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