Egypt is ramping up its solar energy investments as skyrocketing gas prices strain the economy. With abundant sunshine, vast deserts, and an established electricity grid, the country is finally leveraging its solar potential to meet rising energy demands.
The energy crisis began last year when domestic gas production plummeted, triggering summer blackouts. Gas imports exceeded $1 billion, and analysts predict billions more will be spent in 2025. “This crisis has been a wake-up call,” said Ahmed Mortada of the European Bank for Reconstruction and Development (EBRD).
Major Solar Investments
In December, UAE-based AMEA Power launched a $500 million solar plant in Aswan. The plant, capable of producing 500 megawatts, is the first step in a larger initiative. AMEA plans to invest $300 million in a new 1,000-megawatt project, with operations starting by early 2026.
“This energy will cost just 2–3 cents per kilowatt-hour, far cheaper than gas-generated power,” said AMEA Chairman Hussain Al Nowais. In contrast, gas-powered electricity costs 7–9 cents per kilowatt-hour, heavily subsidized by the government.
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Other major players are stepping in. Norwegian company Scatec plans a 1,000-megawatt solar project, while a UAE-Egyptian consortium led by Infinity and Masdar aims to generate 1,200 megawatts.
Renewables vs. Challenges
Egypt’s government has set an ambitious target: renewables will make up 42% of its energy mix by 2030, compared to just 11.5% today. To support this, a law passed in March 2024 allows private solar providers to sell directly to businesses.
However, challenges persist. Current regulations prevent urban residents from installing two-way meters unless they own their entire building. Without these meters, rooftop solar power cannot feed into the grid. “The system is fragmented, with no centralized approach,” said Yaseen AbdelGhaffar, CEO of SolarizEgypt.
Prime Minister Mostafa Madbouly has called for international support to expand the grid and integrate solar projects. The EBRD is already discussing infrastructure improvements.
A Solar Future
Experts believe solar will become mainstream once government subsidies on electricity are reduced. At present, wealthier households pay 2.35 Egyptian pounds ($0.046) per kilowatt-hour. “Once subsidies are lifted, solar panels will become as common as satellite dishes,” said Ayman Rasekh, CEO of SolarSol.
