Egypt, a part of the Sahara and Libyan deserts, boasts a climate characterized by extreme aridity, scorching heat, minimal rainfall, and abundant sunlight. Despite significant temperature fluctuations in its inland desert regions, ranging from 7°C at night to 43°C during the day, the consistently ample sunshine provides ideal conditions for solar power generation.
With a population of over 106 million, Egypt has achieved 100% electrification. This means there’s a significant demand for harnessing solar energy through solar panels. However, Egypt needs more solar power plants to fully transform its energy grid and transition away from fossil fuels.
Situated in the vicinity of the Nile jewel, Aswan, lies one of the world’s largest solar parks, Benban, sprawling over 37 square kilometers. Benban Solar Park is an integrated power complex comprising 41 solar power plants in Benban, Aswan Province, Egypt. Upon completion, it’s set to become the world’s largest solar photovoltaic park.
Egypt’s New and Renewable Energy Authority (NREA) oversees this massive 1.8 GW photovoltaic project, consisting of multiple smaller solar power plants developed by different companies, with a total investment of up to $4 billion.
Once fully operational, Benban is expected to generate over 4 TWh of electricity annually and reduce CO2 emissions by 2 million tons per year. Egypt’s renewable energy generation capacity is projected to increase from 3.51 GW in 2020 to 13.7 GW by 2030, with a compound annual growth rate (CAGR) of 14.6%.
In March this year, the Egyptian government approved an application by China Energy Engineering Group to build a $5.1 billion project in the country. At the end of last year, China Energy Engineering Group signed an agreement with Egypt to construct a wind farm and solar park in two phases, produce carbon-free hydrogen, and an ammonia synthesis facility. The group anticipates an annual production of approximately 140,000 tons of green hydrogen once the facility is operational.
Since 2009, China Energy Engineering Group has implemented ten energy projects in Egypt and is currently executing projects like the 330-kilometer power interconnection line between Egypt and Saudi Arabia.
On December 7, 2022, in the presence of Egypt’s Prime Minister Mostafa Madbouly, China Energy Engineering Group signed a memorandum of cooperation for a green hydrogen project with Egypt’s New and Renewable Energy Authority, the Suez Canal Economic Zone Authority, sovereign funds, and the electricity transmission company. It’s noteworthy that among internationally renowned investment developers, China Energy Engineering Group is the only Chinese company to have signed an official cooperation agreement with the Egyptian government.
Egypt’s commitment to expanding its renewable energy capacity and the significant investment from China underline the nation’s ambition to harness its abundant solar resources for sustainable development and reduce reliance on fossil fuels.