Renewable energy attracting more foreign investments

Environment-friendly solutions and renewable energy are a must to ward off the negative impacts of climate change. To this end, Egypt has streamlined a strategy to reduce reliance on carbon in co-operation with the private sector and global partners to increase the production of green hydrogen and other clean energy resources

Foreign investments in renewable energy projects in Egypt doubled to $3.5 billion in 2021, increasing output to reaching 3,570 megawatts (MW), according to data from the state-run New and Renewable Energy Authority (NREA). Wind and solar energy accounted for 78 and 22 per cent of the total 3,570 MW produced in 2021, according to NREA.

The leap in foreign direct investment pumped into Egypt’s renewable energy sector reflects an increase in global demand against the backdrop of fossil fuel supply gyrations and high oil prices.

Why renewable power?

Egypt’s renewable energy sector has the potential to provide world investors with a variety of groundbreaking opportunities for wind and solar facilities. Moreover, the growing global demand for green hydrogen should be an eye-opener for the government, the private sector and all parties concerned to prioritise this clean energy resource, building up the required infrastructure for this strategic domain of business.

The state targets to raise renewable energy resources to 40 per cent by 2035, seeking to boost reliance on renewable energy, as part of bolstering the green economy in the North African country.

The green economy is no luxury as it has become a means for achieving sustainable development in the long run. It is now deemed a pillar for sustainable development.  Egypt has taken the lead in Africa and the Middle East, rolling over green economy standards for luring inflows of foreign direct investment (FDI).

The state also targets to reduce the health and environmental risks caused by fossil fuels by 75 per cent by 2040.

Going hydroelectric is another key objective in the long run.  Hydroelectric power production hit 13,878 gigawatt hours (GWh), while wind and solar output totalled 5,737 GWh and 4,393 GWh, respectively, according to NREA.