Egypt advances 7,150MW of renewable energy projects

Claudia Lacave/Hans Lucas via Reuters

Egypt is actively developing 7,150 megawatts (MW) of renewable energy projects, a government official has said.

These projects are divided into 3,450MW of wind energy and 3,700MW of solar power.

The wind energy projects include collaborations on the Red Sea involving the Orascom-Engie-Toyota consortium, Saudi Arabia’s Acwa Power and UAE’s Masdar, Egypt Today newspaper reported, citing electricity and renewable energy minister Mahmoud Esmat.

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The solar energy initiatives include Egypt’s Abydos, Norway’s Scatec and Masdar, the minister said.

Esmat said talks are being held with project developers to integrate battery storage systems totalling 2,840 MWh into the ongoing projects.

Furthermore, the government is working to support private sector participation in renewable energy investments.

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Land has been allocated to the New and Renewable Energy Authority for establishing projects, including those related to green hydrogen.

To further incentivise investment, the government is offering land for project setups in exchange for a 2 percent share in annual electricity production, the report said.

Customs duties on components and spare parts for renewable energy systems have been reduced from 5 percent to 2 percent, while the value-added tax has been lowered from 14 percent to 5 percent, the report said.