Egypt’s renewables energy sector presents a potential opportunity of more than USD 10 billion for private sector financing over the next five years, according to Frost & Sullivan.
Egypt’s installed power capacity is set to nearly double from 31 gigawatts in 2013 to 60 gigawatts in 2020, while renewables will present investment opportunities to a tune of $13bn.
Egypt plans to achieve 20 percent of its 11.32GW capacity from renewables by 2020, across wind, photovoltaic, concentrated solar power, and hydroelectric projects, according to a report by the Regional Center for Renewable Energy and Energy Efficiency.
“There are more than 4,000 megawatts in renewable energy projects currently under development in Egypt, split between wind, and solar, procured under a newly established Feed-in-Tariff regime and competitive tenders,” said Bakr Abdel-Wahab, Managing Director of Infrastructure Private Equity at EFG Hermes, one of the Arab World’s largest banks.
“There will be strong medium to short-term growth, but to date it has been a slow process due to some volatility and clarification regarding the government regulatory frameworks.”