Egypt aims to expand renewable power in the energy mix to more than half and to become a global green hydrogen producer but is facing funding problems and other hurdles, its electricity and renewable energy minister says.

The third largest Arab economy has taken steps to improve investment laws in electricity and hydrogen projects, but they need huge capital, technology transfer and training of nationals to operate such facilities, Mahmoud Esmat said.

He told an African utilities conference in Cairo on Wednesday that Egypt is pushing ahead with plans to expand renewable energy use to nearly 42 percent of the total energy mix by 2030 and 65 percent by 2040.

New laws also aim to upgrade efficiency and reduce consumption of electricity by around 18 percent in 2040, the minister added in an opening address carried by the Egyptian cabinet’s Facebook page.

Esmat said Egypt’s strategy chalked out by the ministry is to become one of the world's leaders in the low-carbon hydrogen economy, noting that the ministry has issued a law including incentives for green hydrogen projects to encourage the private sector to participate effectively in the sector.

“Egypt is facing challenges in achieving its goal for energy transition despite its promising positive impacts. These challenges include securing the necessary funding for renewable energy and infrastructure projects,” he said

“These projects require massive long-term investments as well as transferring and localizing modern technology and building qualified human capacities to manage and operate these advanced systems.”

Read more: Egypt’s green hydrogen push stalls amid financing, grid challenges

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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