Egypt has an abundance of natural resources for renewables to be its primary source of energy, particularly solar and wind. Photographer: Henk Kruger Independent Newspapers
Egypt is at a pivotal moment in its development in the renewable energy space. The country has an abundance of natural resources for renewables to be its primary source of energy, particularly solar and wind. This is incredibly important as Egypt has a high birth rate. It is the most populated Arab country and as a result, energy demands are beginning to rise with the rates.
The Egyptian energy market represents a small percentage, less than 15% of the overall GDP. Investment in renewables not only offers environmental benefits but also socio-economic advantages, such as reducing carbon emissions and creating green jobs. When a society has greater employment, over time poverty levels decrease and so does the reliance on public support systems and infrastructure. It is believed by the International Renewable Energy Agency (IRENA) that Egypt could benefit greatly from renewable energy because it can provide “sustainable economic growth while achieving global climate and sustainable development objectives”.
The strategic initiatives to transition from fossil fuels to focusing on wind and solar energy is a central part of the Egypt Vision 2030 plan; where they aim to make the economy more balanced, competitive and diverse to ensure as well as enable the state to be the leading renewable MENA country.
The Egyptian government has issued incentives directed towards incentivising the private sector’s involvement in the renewable energy sector hoping to garner support for a green transformation. There have been various partnerships involved such as Siemens and Vestas involving large-scale wind turbine installations, an Egyptian-Chinese collaboration, as Beijing plays a key role in global energy investments, particularly solar. Cairo has already implemented the Egyptian Renewable Energy Law that encourages private sector participation and foreign investment in renewable energy.
Egypt is considered to be a prime location for solar energy with sunshine for 9–11 hours a day. The first solar power plant was the ‘Solar Combined Cycle’ in Kuraymat. Another very notable solar park is the Banban Solar Park located in the Aswan Governorate. It is one of the world’s largest solar parks, spanning 36 square kilometres. This park forms part of the State’s Sustainable Energy Strategy 2035. The government has high goals for renewable energies aiming to generate 42% of electricity from renewable sources by 2030 with 11.5% of renewable sources currently being generated from hydropower, solar and wind.
Despite the government’s best efforts, there is still a heavy reliance on the private sector to facilitate the energy targeted needs, as a significant portion of wind and solar energy is driven by private investment and FDI (Foreign Direct Investment).
Upon the success of Egypt’s renewable energy approach for greater renewable energy generation, it can benefit BRICS by being a blueprint or model for other countries struggling to have consistent electricity production and be a reference point for other states wishing to implement more sustainable practices. A notable example is South Africa which has struggled with uninterrupted energy supply and generation for over a decade.
Egypt has remarkable energy potential, with exceptional wind resources concentrated in key regions such as the Gulf of Suez, the Red Sea coast, and the eastern and western banks of the Nile River. The wind speeds in these regions can average 8-10 metres/ second, which make them ideal for large-scale energy projects. Another important note is that the wind energy capabilities have not yet reached their full potential as there are other areas with very promising generating capability in the Gabal El Zayat or the Menya Governorates. Egypt aims to achieve an additional 1.340 MW of wind power capacity– this is currently under development.
In January 2025, the OPEC Fund for International Development announced a $30 million investment into Egypt's Gulf of Suez Wind Farm and is set to become Africa’s largest onshore wind farm. This significant investment highlights Egypt’s leadership in renewable energy and its commitment to enhancing energy self-sufficiency.
Egypt is laying foundations for a sustainable future by investing in renewables and positively contributing to reducing the carbon footprint. With the current efforts that Egypt is undergoing to make an energy transformation, optimising the abundant solar and wind resources, the ambitious Egypt Vision 2030 goals are in reach.
* Banthati Sekwala: Associate at BRICS+ Consulting Group Egyptian and South African Specialist