Egyptian minister says Egypt achieves lowest renewable power prices

Written by
21 Jun 2023
Egyptian minister says Egypt achieves lowest renewable power prices

Dr. Mohamed Shaker discusses Egyptian clean power prices, extolls transmission system advances in past decade, and suggests renewables targets will rise; Cairo-based business leader adds insights

Mohamed Shaker El-Markab, Egypt’s Minister of Electricity, New and Renewable Energy, confirmed that the selling price per kilowatt-hour of solar and wind energy in Egypt is the lowest in the world, and one of the most attractive prices for investment in this field in the world. , He said that all current contracts are based on the new prices.

Shaker delivered extensive comments during a seminar on the achievements of Egypt’s electricity sector at the National Press Authority in Cairo, according to reports from the Middle East News Agency (MENA) earlier this month.

He said the price of a kilowatt hour from the sun is 2 cents, and 2.4 cents for wind energy, according to the MENA news report.

He also pointed out that the sector has succeeded during the past 9 years since 2014 in adding new transmission lines, an increase of up to 150% over what was available 9 years ago, stressing that the Egyptian transport network is currently one of the strongest networks in the world.

“Egypt aims to reach 60% renewable energy by 2040,” he said.

He explained that the Egyptian strategy is to reach 42% of renewable energy by 2030, but this strategy is currently being updated based on existing data and the availability of wind and solar energy sources and their low prices.

The Egyptian minister revealed that there are 6 renewable energy projects currently under construction, representing direct foreign investment of $4.4 billion to generate 2,500 MW.

He pointed out that it is planned that the total installed capacity of renewable energy will reach about 10,000 MW by 2025, according to the Middle East News Agency.

Shaker also discussed thermal power development in the country, pointing out that the average fuel currently used to produce kilowatt hours is 117 kilograms per kilowatt hour, which is a very good rate as a result of raising the efficiency of old stations and establishing new stations with the highest international standards, the  most important of which are the three giant Siemens stations in Beni Suef, Burullus and the New Administrative Capital.

Ambitious plans

Dr. Hala Ramadan, Director of the Strategic Department at the New and Renewable Energy Authority at the Ministry of Electricity, revealed the country's ambitious plans to produce renewable energy. In recent public statement, she explained that the Authority is working on establishing and owning renewable energy projects of an amount of approximately 1.2 GW, whether wind or solar energy projects.

She confirmed that the Authority is working to facilitate investors' dealings with all parties, whether in licensing or approvals that help them establish their projects.

She also pointed out that the private sector has 66% share of the existing renewable energy projects , with 34% share for the government.

Need for financing

“The prices of renewable energy in Egypt are among the cheapest in the world, given the country’s vast resources in the solar and wind energy sectors, which makes investing in Egypt economically feasible,” says Wael El-Nashar, a solar energy expert and Chairman of the Board of Directors of OneraSystems, based in Giza.

"The increase achieved in the electricity sector currently is estimated at about 1.5%, and it comes from solar energy," he adds.

"The expansion of the solar energy sector in Egypt still needs several factors, most notably financing, which is one of the most important challenges because so far there are no long-term financing programs to help companies, individuals and residential units install solar plants."

El-Nashar points out that the current short-term financing programs do not exceed 5 years, which limits them as incentives for individuals to get into solar energy projects.

Energy & Utilities reported last week on wind turbines for the Amunet wind farm project in Egypt, which will have a capacity of 500 MW. E&U also reported on an agreement signed in Cairo that looks to secure land for an enormous 10 GW wind power project led by Infinity Power and Hassan Allam Utilities. 

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