Egypt attracting heavy investment in renewables
The Egyptian renewable energy market is attracting heavy investment from leading international investors including the European Bank for Reconstruction and Development and Masdar.
EBRD has announced it has received 67 requests from private companies seeking to develop renewable energy projects in Egypt.
The bank itself has put forward several million dollars for the project, and the French Development Agency Group has announced it will contribute €60 million, as a part of an agreement with Egypt’s Commercial International Bank.
The North African state has a population of over 50 million, and is one of the world’s most densely populated countries, yet it still lacks electricity in many areas.
This lack of power, and the country’s strong and constant wind supply offer a huge potential market for renewable energy.
Over the last few months, leading global renewable energy companies have begun to tap into this potential.
ACWA Power and the Masdar Group, signed an agreement to develop 1.5 gigawatts of solar and 500 megawatts of wind energy capacity.
Terra Sola has announced a US$3.5 billion investment to set up about 2 gigawatts of solar power capacity over the next few years, with initial plans to set up a 800 MW solar power park, while SkyPower Globaland International Gulf Development have signed agreement to install up to 3 gigawatts of solar power capacity over the next 4 years.
The 2020 target set by Egypt’s New & Renewable Energy Authority includes 12 per cent from wind power and 8 per cent from other technologies like solar power and hydro power.