Renewable Energy Could Provide Half of Egypt’s Electricity Demand

The International Renewable Energy Agency (IRENA) report shows that Egypt may be capable to generate 53% of its electricity mix from renewable energy sources. Predictably, on the year 2030, 22% of Egypt’s total final energy supply would be sourced from renewable energy upon the combination of renewable power, fuels and heat.
IRENA held a conference in Cairo, Egypt in front of Egyptian government officials and the region’s decision-makers. They said that renewable energy can supply up to a quarter of Egypt’s total final energy supply on the year 2030 whereby energy is separate from electricity.
Egyptian Minister of Electricity and Renewable Energy, Dr. Mohamed Shaker expressed his thoughts saying “This analysis offers the Egyptian energy sector a roadmap, building on current ambitions and plans, to enhance our position as an energy hub connecting Europe, Asia and Africa,” He continued to say “Job creation, economic development and the growth of local manufacturing capabilities are at the heart of our renewables program, and with the support of IRENA we can pursue our plans to grow the country’s installed capacity base through smart policies, and the latest renewable technologies.”
According to Dr. Shaker, in the recent years, there are significant cost reductions which is why government all over the world are starting to reconsider new energy strategies. Egypt’s government have decisively made a movement to hasten its installation and use like the large Benban Solar Complex.
Egypt raises their ambition further and increase investments which demands stable framework of policy and streamlined regulatory environment that is both clear and certain for investors. Investing on renewable energy helps meet the demand of energy while fostering economic growth, increasing job offers and developing local manufacturing.
Although the analysis made by IRENA suggests to increase investments on renewable energy from $2.5 billion annually to $6.5 billion per year, it also promises a result of cost reduction of $900 million annually on 2030. This reduction is equivalent to $7/megawatt-hour (MWh). Moreover, the predicted reduction has not yet included the external cost benefits like air pollution by which analysis show could result to health and social benefits that’s worth $4.7 billion annually by 2030.

IRENA’s report also emphasized the need for adjustments to sustainable energy strategy in Egypt. Since the development of the Egypt’s current energy strategy last 2014, there were no significant economic and technological changes occurring at regional and national levels. One of the adjustments to be done would include eliminating subsidized energy prices which some people believes could relieve the government’s financial burden due to its diminishing revenues.
The following are the seven key actions to be accomplished as suggested in the report by IRENA to help the country hasten the country’s use of renewable energy.
  1. Update energy and power sector strategies to reflect the growing cost advantages and other benefits of renewables
  2. Reflect the potential of biomass in future updates of the energy strategy
  3. Streamline regulations and clarify institutional roles and responsibilities for wind and solar development
  4. Reform the current market framework to improve project bankability
  5. Bundle renewable energy projects to strengthen risk mitigation and ensure their financial viability
  6. Conduct comprehensive measurement campaigns for solar and wind potential
  7. Develop a master plan for enhancing local manufacturing capabilities and create a vibrant domestic renewable energy industry.

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