Egypt Signs MoU with Chinese Company to Establish 10 GW Solar Power Plant

The New and Renewable Energy Authority, the Egyptian Electricity Holding Company, and the China Electric Power Equipment and Technology signed a memorandum of understanding (MoU) to begin conducting preliminary studies and measurements to develop a 10-gigawatt solar energy project.

The signing of the memorandum of understanding comes within the framework of implementing the state’s energy strategy and the plan of the Ministry of Electricity to increase the capacity of renewable energies in the energy mix, and reduce the use of fossil fuels to achieve the sustainable development plan.

The solar energy project, for which the memorandum of understanding was signed, will produce about 29,784 gigawatt-hours of clean energy annually, which will contribute to reducing about 14 million tons of carbon dioxide emissions.

The project comes within the framework of Egypt's Green Corridor Initiative, and upon completion, the project will save an estimated $1 billion annually in annual natural gas costs.

Mohamed Shaker, Minister of Electricity said that the Egyptian state has adopted an ambitious program to advance the electricity sector in various fields, most notably maximizing the use of new and renewable energy resources and encouraging the foreign and local private sector to invest in this field.

He added that this trend would contribute to reducing dependence on fossil fuels, while continuing to reduce carbon emissions, in line with the state’s goals to reach the percentage of participation of renewable energy sources in the energy mix to 42% by 2030, in addition to integration with the National Climate Strategy 2050 to ensure facing the challenges of climate change and achieving sustainable economic growth.