As rising petrol prices put pressure on the economy, Egypt is expanding its solar power production thanks to its huge deserts, plenty of sunlight, and advanced electrical system. A government emergency plan was prompted by rolling blackouts last summer, which were caused by declining local gas production and rising usage.
Last year, Egypt spent more than $1 billion more than anticipated on LNG imports, and by 2025, prices are forecast to increase even further. Companies like AMEA Power emphasise the cost-effectiveness of solar energy as a less expensive option. With electricity costs of 2 to 3 cents per kilowatt hour, which is much less than gas turbines, AMEA just opened a $500 million, 500 MW solar plant in Aswan and wants to build another 1,000 MW facility by 2026.
Solar development has been hindered by tight rules and subsidies, notwithstanding the promise. Although formerly limited to 500 MW, new regulations now allow commercial power providers to provide electricity to companies. By 2030, the government wants to increase the share of renewable energy from 11.5% to 42%.
Although AMEA, Scatec, and UAE-based consortia are working on large-scale projects, analysts caution that a disjointed government strategy and inadequate infrastructure can hinder progress.
