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Solar Power Outlook in Egypt

  • October 2015
  • 8 pages
  • GlobalData
Report ID: 3411227


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Solar Power Outlook in Egypt


Egypt’s energy crisis can be traced back to 2006–2007, when it became a net energy importer for the first time by importing oil. The government then resorted to energy subsidies to keep power tariffs economical, and until 2010 was able to maintain a balance by extracting natural gas from its huge gas deposits. However, the political unrest that began in 2011 endangered this when foreign extraction companies, which were no longer being compensated, ceased operations. In addition, it is now suggested that Egypt’s natural gas deposits may not be economically extractable for much longer.

Furthermore, generation shortages from conventional sources, combined with its dilapidated transmission and distribution grid, have caused sustained electricity outages. More than 90% of its generation capacity is derived from thermal sources, with gas alone accounting for 86.3% of total installed capacity in 2014, hydropower for 8.8%, oil-based capacity for 3.1%, and wind and solar together for only 1.8%.

The need to introduce renewable sources of energy can be gauged from the fact that although a previous government’s attempt to remove energy subsidies led to widespread riots, the present government nevertheless announced its intention in 2014 to do the same, albeit gradually. These subsidies have been identified as being the most significant obstacle to the sector’s development. Phasing out the subsidies therefore appears to be the only way to end the crisis and make the system more competitive and environment-friendly.

In September 2014, the government announced the introduction of Feed-in Tariffs (FiT) for wind and solar power, the absence of which had previously impeded the expansion of renewable power capacity. The target was to reach a new installed target of 4.3 Gigawatts (GW) by 2017, of which more than half at 2.3 GW will come from solar power.


- The report includes solar power feed-in tariffs, solar power capacity and generation, active and upcoming projects and tenders in the solar energy sector.

Reasons to buy

- The report gives an update on the country's solar energy sector.
- Helps in understanding the growth trajectory of solar power in the country
- Gain insights into the country's solar feed-in tariffs, active and upcoming solar power projects.
- Identify major tenders in the solar energy sector.

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