The International Energy Agency’s report highlights Egypt’s efforts in the field of clean energy
International Energy Agency report highlights Egypt’s efforts in the field of clean energy
In light of the increasing environmental challenges, it is the responsibility of every country to limit the effects of climate change, and Egypt stands out as a role model in this field within the African continent and throughout the Arab region, as it has adopted an ambitious strategy for transitioning to clean energy, and according to the report of the International Renewable Energy Agency, Egypt ranked first in the Arab world in possessing the largest capacity to generate electricity from renewable energy in 2023; What factors contributed to this remarkable success? What are the benefits to the Egyptian economy from this transformation? This is what the Earth Guards answer in the following lines: So keep reading.
International Energy Day Celebration
In conjunction with the world’s celebrationInternational Clean Energy DayThe report of the International Renewable Energy Agency (IEA) comes, which indicates at the beginning that Egypt ranked first in the Arab world in possessing the largest capacity to generate electricity from renewable energy in 2023, with a total capacity of 6,709 megawatts, while the UAE came in second place with a capacity of 6,035 megawatts, followed by Morocco in third place with a capacity 4105 megawatts, and Saudi Arabia ranked fourth with a capacity of 2988 megawatts, noting that Egypt’s capacity rose in the following year 2024 – according to the latest data of the Ministry of Electricity and Renewable Energy – to 7633 megawatts in 2024, in solar energy, wind energy, and hydropower.
The report indicated that the capacity ofsolar energy reached 2,611 megawatts in 2024, compared to 140 megawatts in 2013/2014, an increase of about 19 times, while wind energy capacities reached 2,190 megawatts in 2024, compared to 550 megawatts in 2014. 2013/2014, an increase of about 4 times, and hydropower capabilities reached 2832 megawatts in 2024, compared to 2800 megawatts in 2013/2014, an increase of 1.1%, and it is targeted that Egypt’s capabilities reach 10 thousand megawatts by the end of the current year.
The report reviewed the state’s efforts to expand reliance on clean energy, and stressed that Egypt is adopting an ambitious approach in the field of renewable energy, as it seeks to increase the contribution of renewable energy to the electrical energy mix, to reach 42% by 2030, then to 60% by 2040, indicating that this strategy makes Egypt a role model in the region, and that the major renewable energy projects it adopts confirm its determination to turn that vision into reality as well. Contributes to achieving global goals related to sustainable energy.
The impact of renewable energy on economic growth
Based on the above, there has been remarkable progress for Egypt in the field of renewable energy, as it rose 5 places in the Investment Attractiveness Index according to Ernst & Young, which is symbolized by the abbreviation “E&Y”, moving Egypt from 39th place in March 2015 to 34th place in June 2024, and it rose 6 places in the Sustainable Energy Transition Index issued by the World Economic Forum, moving from the position 81 in 2018 to 75 in 2024.
These tireless development efforts in Egypt have made it an attractive destination for investments in this sector, something indicated by the credit rating agency Fitch. It stated that the energy market in Egypt is poised for continued growth based on strong renewable energy initiatives and continued support from private sector investments, and the agency also expected that non-hydroelectric renewable energy sources would be the fastest growing sector.
Renewable energy projects in Egypt
This remarkable progress in investment indicators and the transition to sustainable energy reflects the growing confidence in the Egyptian economy, and encourages more investments in renewable energy projects, including the green hydrogen industry; Therefore, it was mentioned in the International Agency’s report, where the report explained that the low-carbon hydrogen strategy launched by Egypt in August 2024 is expected to yield positive results. It is estimated that the GDP will increase by $18 billion by 2040, create 100,000 jobs, and achieve a market share of 5-8% in the global hydrogen market.
To keep pace with this strategy, 30 memorandums of understanding were signed to localize the green hydrogen industry in the Suez Canal Economic Zone, many of which have turned into framework agreements. Investments in these projects are estimated at approximately $64 billion, and are expected to contribute to the production of 18 million tons annually of green hydrogen.
In addition, the report referred to the “Novi” program, which aims to shift towards renewable energy, by stopping the operation of plants using traditional energy sources with a capacity of 5,000 megawatts. Traditional plants estimated at approximately 1,200 megawatts have already been shut down. One of the goals of the “Novi” program is to enhance the role of the private sector in developing renewable energy projects, as it seeks to attract investments worth $10 billion to add 10,000 new megawatts by 2028, and the program has made remarkable progress so far, with $3.9 billion already provided for projects with a capacity of 4,200 MW.
In conclusion, these efforts made and the goals achieved day after day prove Egypt’s leadership in the field of renewable energy, as it strives to achieve a green transformation in the economy, and Earth Guards appreciate these efforts with clear effects; Because switching to renewable energy is not only an environmental necessity, but rather an opportunity to achieve sustainable development in all sectors.
