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 Chinese Firm Signs MoU to Develop 10GW Solar Project in Egypt


Chinese Firm Signs MoU to Develop 10GW Solar Project in Egypt

The China Electric Power Equipment and Technology Limited has signed a memorandum of Understanding (MoU) with Egypt’s New and Renewable Energy Development and Use Authority and Egypt Electricity Holding Company to develop a 10GW solar energy project in Egypt.

Egyptian Prime Minister Dr Mustafa Madbouli, Egypt’s Minister for Electricity and Renewable Energy Dr Mohamed Shaker Al-Marqabi, and other officials were present on the occasion.

The MoU was signed by Dr Mohamed Al-Khayat, CEO of the New and Renewable Energy Development and Use Authority, Jaber Dsuqi, Chairman of the Egypt Electricity Holding Company, and Yu Jong, Chairman of Chinese Electrical Power Equipment and Technology Company Limited.

The project is expected to reduce carbon emissions by 14 million tons when completed and will save around $1 billion in gas-powered energy costs per year.

The Chinese power company is expected to invest $10 billion in the build-own-operate (BOO) solar project in Upper Egypt and will sell the electricity produced on to the Egyptian Electricity Transmission Company.

The signing of the MoU is within the framework of the implementation of government’s strategy for to increase the share of renewables in the energy mix, reducing the use of fossil fuels to achieve the sustainable development plan as targeted by the state.

The planned solar power project will produce about 2,9784 GW/hour of clean energy annually and is part of the Egypt Green Corridor initiative.

Committed to Develop Green Energy

Speaking on the occasion, Al-Marqabi said that Egypt has adopted an ambitious program to promote the country’s electricity sector in various fields by exploiting the abundant solar irradiation and encourage foreign and local private sectors to invest in this sector.

“This will contribute to reducing the country’s dependence on fossil fuels, as they help in reducing carbon emissions, in line with state goals of achieving a renewable energy mixed energy share rate of up to 42% by 2030, as well as integrating with the National Climate Strategy 2050 to ensure climate change challenges, and achieve sustainable economic growth,” the Minister explained.

He further said that this new project comes as an extension of the historic relations between the Egypt and China, reflecting the benefits of productive cooperation and construction between the two countries, besides emphasising the role of Egyptian state-owned institutions in creating a low-risk investment climate.

It also reflects the positive interaction with funding institutions and development partners, as well as Egypt’s relative advantages of having the vast tracts of land needed to produce massive amount of electricity from renewable energies besides Egypt’s geographical location enabling it to export green energy to many countries around the world, he added.

Global Business Magazine

Global Business Magazine

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