With over 92 million inhabitants, Egypt is the most populous country in Middle East. Energy output and consumption has continued to grow at remarkable rates for much of the country. To meet the increasing demand, MOEE is planning to add 51.3 GW to the current installed capacity by 2020, which will be diversified between oil, gas, solar, wind, hydro and nuclear resources.
Egypt is located in the Sunbelt and on the sea shore making it an ideal country for generation of wind and solar energy. The market size based on cumulative installed capacity increased to ~ MW at the end of 2016. Total installed capacity for generation of solar energy increased to ~ MW in 2016. Wind energy was largely generated from Zafarana and Gabal El Zayet wind farm. The solar power project Siwa was developed in 2015, which has largely attributed to the rise in installed capacity of the solar energy projects in the country.
From 2011-2013 the development of cleantech energy was halted due to political instability in the country. In 2014, the government started implementing a bold and transformational reforms program, aimed at spurring the economy, enhancing the country’s business environment and staging a balanced and inclusive growth. The Ministry of Electricity and Renewable Energy (MOEE) acts as the owner of the state entities in the power sector. Egypt has allocated land specifically for development of renewable resources of energy, with about 7,650 square kilometers which can host about 87 GW (54.3 GW PV and 32.7 GW wind projects).
The government is planning to reduce subsidy on electricity in order to make renewable energy more competitive. Every attempt is made to tap the vast renewable energy potential of Egypt.
Solar Energy Market Size in Egypt
At the end of 2016, total installed capacity of solar photovoltaic form of panels was estimated at 61.0 MW. Solar CSP mirror contributed another 20.0 MW. In 2015 the first off grid solar power plant of capacity 10 MW was commissioned. In 2016, two new projects with capacity 6.0 MW in Elfrafra and 14.0 MW in Red sea governorate were completed. Kuraymat CSP solar power plant was developed in combination with conventional power plant. Government is targeting commercial businesses to develop the rooftop solar power and solar water heaters.
Market Segmentation by Technology
Market for solar energy is segmented based on technology of collecting the energy. Photovoltaic cells are most commonly used technology in Egypt for generation of electricity from solar energy. Ease of installation, continuous decline in prices and improving technology has promoted the use of PV cell in much higher proportion. In Egypt the entire use of CSP solar mirrors was restricted to one solar power plant which was developed as part of combined power plant with installed capacity of ~ MW.
EPC Market Size for Solar Energy and Future Outlook
EPC market of solar power in Egypt is still in its infancy as very few projects are installed. EPC players in Egypt are mainly involved in developing commercial scale rooftops and small scale utility solar power plants generating revenue of estimated USD ~ million. Some key companies operating in EPC segment include Cairo solar, Sunprism Energy Technology, and many others. The future for solar power EPC market is very bright as construction of solar power plant in first phase of FiT is expected to start. Many companies have decided to withdraw from the first phase due to sudden change in regulations which may hamper the EPC market as well as total installed capacity in future.
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