Renewable energy outlook: Egypt

1 Based on Renewables Readiness Assessment and REmap analysisEGYPTRENEWABLEENERGY OUTLOOK IRENA 2018 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided that appropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to third parties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured before any use of such 978-92-9260-069-3 Citation: IRENA (2018), Renewable energy Outlook.

2 Egypt , International Renewable energy Agency, Abu IRENA The International Renewable energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on Renewable energy . IRENA promotes the widespread adoption and sustainable use of all forms of Renewable energy , including bioenergy, geothermal, hydropower, ocean, solar and wind energy , in the pursuit of sustainable development , energy access, energy security and low-carbon economic growth and report was prepared by IRENA in close collaboration with the Government of Egypt , as represented by the New and Renewable energy Authority (NREA).

3 Special thanks are due to numerous other officials from Egypt , especially from the Ministry of Electricity and Renewable energy , EgyptERA (Regulatory Authority) and the Egyptian Electricity Transmission Company (EETC).The report benefited from the input of various experts, notably Ahmed Mortada (EBRD), Khaled El Degwy (ORASCOM) and Asmaa Kamel (NREA). IRENA colleagues who provided valuable review and support include Ahmed Abdel-Latif, Abdulmalik Oricha Ali, Safiatou Alzouma, Samah Elsayed, Huiyi Chen, Yong Chen, Rabia Ferroukhi, Dolf Gielen, Diala Hawila, Lennart Kuntze, Asami Miketa, Joanne Jungmin Lee (ex-IRENA), Gayathri Prakash, Michael Renner, Deger Saygin (ex-IRENA), Dennis Volk (ex-IRENA), Henning Wuester and Ali Yasir.

4 Contributors: Zoheir Hamedi, Reem Korban, Gurbuz Gonul, Nicholas Wagner and Rodrigo Leme (IRENA), Mustapha Toumi and Lara Younes (ex-IRENA), Mohamed Salah El Sobki and Anhar Hegazi (consultants)DisclaimerThis publication and the material herein are provided as is . All reasonable precautions have been taken by IRENA to verify the reliability of the material in this publication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material information contained herein does not necessarily represent the views of the Members of IRENA.

5 The mention of specific companies or certain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or Outlook Egypt Egypt s Vision 2030 aims to achieve a diversified, competitive and balanced economy within the framework of sustainable development .

6 Renewable energy has a central role to play, a role detailed in the Integrated sustainable energy Strategy to 2035, released by the Ministry of Electricity and Renewable energy in 2015. The ISES 2035 ensures continuous, diversified energy security and establishes the necessary conditions to enable the increased development of renewables through the engagement of all sectors. Moreover, the strategy confirms Egypt s ambition to become an energy hub between Europe, Asia and Africa by expanding grid interconnections across the Arab region and beyond.

7 Egypt is home to a wide array of untapped solar and wind resources, and according to the ISES 2035, Renewable energy capacity should contribute 42% of power capacity by 2035. The Renewables Readiness Assessment and REmap country analysis which together form this Renewable energy Outlook study will help Egypt to achieve such targets. These analyses suggest how to build on the initiatives that Egypt has already undertaken to enhance the deployment of Renewable energy technologies. The Egyptian electricity sector, for example, has adopted a localisation programme and succeeded in meeting a 30% local content target for overall wind farm requirements, with the aim of increasing that to 70% by 2020.

8 Concentrated solar power (CSP) plants should have 50% local content by the same year. FOREWORD from the Ministerof Electricity andRenewable EnergyRenewable energy Outlook: EgyptIIThis analysis was conducted through close collaboration between the Ministry of Electricity and Renewable energy and the International Renewable energy Agency (IRENA), with support from the New and Renewable energy Authority (NREA). It provides vital information to stakeholders in the field of Renewable energy , including both governmental and private-sector entities.

9 This report demonstrates the ability of Egypt to maintain economic growth, sustainability and energy security. It shows how to ensure private-sector engagement, defines the main policy, institutional, market and skills challenges, and offers recommended actions to overcome those challenges. On behalf of the Ministry of Electricity and Renewable energy , I would like to express my sincerest appreciation for IRENA s efforts and support in advancing Renewable energy deployment in Egypt . I would also like to thank all the personnel involved in this project for their excellent co-operation and contributions.

10 I am certain that this report will play a vital role in Egypt s current strategy to achieve its goals in promoting Renewable energy . Dr Mohamed ShakerMinister of Electricity and Renewable EnergyArab Republic of EgyptIIIINTRODUCTIONAs the most populous country in the Middle East, Egypt faces rising energy demand driven by rapid population growth and an expanding economy. This creates significant challenges in maintaining a steady and continuous supply of energy . Renewable energy can help Egypt not only meet its energy needs, but also power sustainable economic growth and create jobs while achieving global climate and sustainable development objectives.