Renewable energy sector lures investments worth $3.5b

The local renewable energy sector has been on the rise despite the negative impacts of the coronavirus pandemic on the global economy. NREA unveiled that foreign direct investments in the nation’s renewable energy sector also doubled to $3.5 billion in 2021.

Roughly 78 per cent of these projects are in the wind energy investments in the Gulf of Suez region on the Red Sea coast, while 22 per cent of investments are injected into solar facilities.

Egypt’s market is the most attractive for energy investors.

The NREA report, a copy of which was made available to The Egyptian Gazette, said that the renewable energy sector had contributed to the slashing of 10 million tons of carbon dioxide emissions in Egypt.

Moreover, the country’s output of hydroelectric energy totaled 14,000 gigawatt/hour, while wind energy projects produced 5,400 gigawatt/hour, according to NREA.

A 250 MW wind power plant started operations in the Gulf of Suez region in 2021.

The authority has signed contracts for a solar cell plant to produce 50 MW of electricity in the Zafarana on the Red Sea coast. It also signed deals to produce 50 MW in Kom Ombo, in Upper Egypt.

Egypt aims to increase green projects by 50-60 per cent by the fiscal year 2024/25. Egypt had issued its first green bonds worth $750 million in 2020 to be become the first country launching such an eco-friendly instrument in Africa and the Middle East.

The government seeks to raise reliance on renewable energy, as part of boosting green economy in the North African country, in a bid to make up for power shortage.

The Electricity Ministry has revealed a plan to diversify the nation’s power resources, particularly solar energy and wind farms.

The government’s investment priorities for a variety of sectors, including transport, petroleum, renewable energy, industry, and exports to activate growth.

The renewable energy sector provides world investors with a variety of groundbreaking opportunities for wind and solar facilities.

Green economy for sustainable development has become one of key pillars, on which advanced and emerging countries around the world are banking to improve the quality of life for their citizens. Eco-friendly use of resources has been a long-term strategy for many countries since the 1992 Rio Earth Summit, which called for an integrated environmental and economic accounting.