Egypt inaugurated a $500 million solar plant in the southern city of Aswan on Saturday as part of its push to boost renewable energy production after last summer’s severe power outages.
The Abydos Solar PV Plant, which was developed by Dubai-based energy company AMEA Power, has a capacity of 500 megawatts and was completed in just 18 months.
The plant is expected to generate 1,500 gigawatt-hours of clean energy annually, enough to power about 300,000 households while offsetting 782,300 tonnes of CO2 emissions, according to AMEA Power.
The project is a “pivotal step in boosting the use of renewable energy in Egypt”, and part of a “national strategy aimed at reducing reliance on traditional energy sources”, Prime Minister Moustafa Madbouly said at the plant’s commissioning ceremony on Saturday.
The premier added that the project would also support the government’s efforts to curb summer power cuts, which have become frequent during periods of high electricity demand.
The solar plant “will accelerate Egypt’s green power strategy and help it deal with power shortages that took place over the past year”, said the chairman of AMEA Power, Hussain Al Nowais, adding that the first electricity from the plant was delivered to the national grid last week.
The project was funded by the International Finance Corporation, the Dutch Entrepreneurial Development Bank and the Japan International Cooperation Agency.
Aswan, known for its year-round high solar radiation, is already home to the 1,650-megawatt Benban Solar Park, one of the largest solar installations in Africa and the Middle East, which was inaugurated in 2019.
On Saturday, the Egyptian government also signed a power purchase and land agreement with AMEA Power for an additional 500-megawatt wind power project worth $600 million in Ras Shukeir, north of Hurghada in the Red Sea.
The Egyptian government plans to increase renewable energy’s share in its power mix to 42 per cent by 2030, from 11.5 per cent as of 2023, according to prime minister.
In November this year, Dr Mostafa Madbouly, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Kamel Al Wazir, Deputy Prime Minister for Industrial Affairs and Egypt’s Minister of Industry and Transport, Dr Mahmoud Esmat, Egypt’s Minister of Electricity and Renewable Energy, attended the signing ceremony of Memoranda of Understanding (MoUs) at the headquarters of the Egyptian parliament at the New Administrative Capital.
The signing ceremony was also attended by Colonel Dr. Bahaa El-Ghannam, Executive Director of the Future of Egypt for Sustainable Development Authority, Mariam Khalifa Al Kaabi, UAE Ambassador to Egypt, and Syed Basar Shueb, Board Member, CEO and Managing Director of International Holding Company (IHC).
These agreements align with the two countries’ shared vision to promote sustainable economic growth and create new opportunities for industrial and technological investment in accordance with their developmental aspirations and plans. The agreements aim to enhance strategic partnerships in key sectors, including industry and renewable energy generation, as well as the development of a joint UAE-Egypt industrial zone in East Port Said.
The MoUs include agreements to establish two plants – one for solar cells and another for solar panels, each with a capacity of 2 GW – as well as a battery energy storage facility with an initial capacity of 2 GW.
Additional MoUs focus on clean energy initiatives, including the study of a 900 MW solar power plant in the Dakhla Oasis and a 300 MW solar plant in Benban, Aswan Governorate, both equipped with energy storage systems. Furthermore, plans include a 3 GW floating photovoltaic solar plant on Lake Nasser and a 2 GW solar plant in northern Naga Hammadi.
The signed projects include the development of a UAE-Egypt industrial zone in East Port Said. The agreement was signed by Ahmed Al Mutawa, Regional CEO of AD Ports Group, and Walid Gamal El Din, Chairman of the General Authority for the Suez Canal Economic Zone (SCZONE).
Another MoU was signed to establish two plants in partnership between Global South Utilities (GSU), and Industrial Modernisation Centre (IMC). One plant is set to produce solar cells with a capacity of 2 GW, and the other will produce solar panels with the same capacity, addressing local market needs and boosting exports to regional and international markets. The agreements were signed by Doaa Salima, CEO of IMC, and Ali Al Shimmari, CEO of GSU.
Agencies
