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Arab Finance: The Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and China's Sany Renewable Energy Co., Ltd signed a memorandum of understanding (MoU) to establish Egypt's first wind turbine manufacturing plant, as per a statement.
Under the agreement, the parties will establish Egypt's first wind turbine factory to manufacture equipment and components for wind energy projects while serving export markets in Africa and the Middle East.
The MoU also covers the development of a 2,000 MW wind power plant in the North Gulf of Suez region using Egyptian pounds, in line with the national energy strategy, which aims to increase the share of renewable energy in Egypt's energy mix to 45% within the next two years.
The project is expected to be connected to the national electricity grid within 23 months of signing the agreements.
The agreement comes as part of government efforts to localize renewable energy technologies, increase local content in renewable energy projects, expand electrical equipment manufacturing, and implement solar and wind energy projects using local currency.
On the sidelines of the signing, Prime Minister Mostafa Madbouly said renewable energy projects support the electricity sector and diversify energy sources, adding that localizing renewable energy-related industries contributes to energy security and the green transition.
Madbouly said President Abdel Fattah El-Sisi regularly reviews renewable energy projects, noting that the government is coordinating with state entities and private sector partners to implement solar and wind energy projects, as well as energy storage systems, using local currency.
He added that the government is expanding energy storage systems to support the integration of renewable energy and maintain the stability of the national electricity grid.
Meanwhile, the Minister of Electricity and Renewable Energy Mahmoud Esmat said that localizing the manufacturing of electrical equipment, particularly for renewable energy projects, supports the state's direction to implement solar and wind energy projects in Egyptian pounds. He added that the ministry is working to define local manufacturing requirements for the sector.
Esmat also revealed that the wind turbine factory will have an annual production capacity of 2 gigawatts and is expected to be completed within two years of signing the agreements.
