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Arab Finance: Prime Minister Mostafa Madbouly held a meeting to review a proposed initiative aimed at expanding the use of new and renewable energy sources in factories across Egypt, according to a statement.
Madbouly affirmed the government's commitment to deepening reliance on new and renewable energy sources, maximizing the country's resources and capabilities in this area, and reducing the import bill for petroleum products.
For his part, Minister of Industry Khaled Hashem said the strategic vision of the “Industry Sun” initiative is expected to strengthen the industrial sector, cut carbon emissions, and drive sustainable economic growth.
The initiative, soon to be launched, targets generating 1,000 megawatts (MW) of solar energy through the utilization of factory rooftops. It mainly relies on transforming solar energy into a fundamental pillar for enhancing the competitiveness of the Egyptian industry and reducing production costs.
In this regard, it will alleviate pressure on natural gas and the national electricity grid and further bolster energy security for the industrial sector.
The strategy will improve the resilience of factories against global market fluctuations and crises, while enhancing the competitiveness of Egyptian exports by reducing their carbon footprint and anchoring the state’s position as a regional hub linking industry, energy, green transition, and clean supply chains.
Hashem discussed the proposed sectoral distribution for implementing the initiative, the expected solar energy production capacity from factories in each sector, and the number of targeted factories within each sector.
The minister noted that small and medium-sized enterprises (SMEs) and industries with high daytime electricity loads could benefit from solar energy, covering a substantial portion of their electricity consumption.
He indicated that implementing a 1,000 MW rooftop solar program would require around 7 million square meters of usable rooftop space and target approximately 7,000 factories, representing nearly 10% of Egypt’s certified industrial base.
The initiative is based on an average installed capacity of around 150 kilowatts per factory, with larger capacities allocated to factories with high electricity demand and larger available spaces, while smaller capacities would be assigned to light and medium industries depending on their activities.
For his part, Minister of Electricity and Renewable Energy Mahmoud Esmat reviewed the economic and environmental feasibility of using solar energy systems and the expected savings in conventional fuels resulting from implementing this initiative.
During the meeting, Minister of Finance Ahmed Kouchouk stated that the government has clear figures regarding the initiative and will work with the financing entities participating in it to launch it soon.
Minister of Investment and Foreign Trade Mohamed Farid presented several proposals to be included in the initiative, which will contribute to increasing the number of financing entities. Farid stressed the importance of including factories located in free zones and investment zones within the program
At the end of the meeting, Madbouly directed officials to swiftly finalize the initiative’s framework in preparation for submitting it to the Cabinet for approval ahead of its official launch.
