Egypt aims to produce 20% of power from renewables by 2020

In an attempt to escape the energy crisis triggered by frequent power cuts, lack of fuel and the deterioration of national networks and power stations, the Egyptian government has signaled its intent to expand the use of new and renewable energy, notably solar energy. Despite the enormous potential, it’s still a daunting prospect because of the level of investment required to expand in solar energy, especially in light of the continuing deficit in the state budget.

In September, Prime Minister Ibrahim Mehleb held a number of intensive meetings with Minister of Electricity and Energy Mohamed Shaker and other parties involved in the energy sector in Egypt to discuss the implementation of a long-term renewable energy strategy. The government confirmed in several press releases — copies of which were obtained by Al-Monitor — that there is no better way to get Egypt out of the energy crisis that doesn’t rely on natural gas or diesel fuel to run power plants.

On Sept. 20, Shaker announced a special tariff for the purchase of new solar and wind energy produced by private companies, following more than five years of delay, in an attempt to encourage the private sector to produce renewable energy and allocate it for domestic and commercial uses, provided government buildings are the first beneficiaries. The state funds part of these projects through soft loans from the Ministry of Finance with a 4% interest rate.