According to local media reports, the Egyptian government recently announced a significant increase in household electricity prices, with the highest rise reaching 50%. This adjustment is part of the gradual removal of electricity subsidies and is aimed at fulfilling a loan agreement with the International Monetary Fund (IMF), expanding Egypt’s loan program to $8 billion.
Under the new regulations, the increase in electricity prices will range from 14.45% to 50%, depending on household electricity consumption. For prepaid meter users, the price hike took effect this past Saturday, while those with regular meters will face the new rates starting from October 1.
Due to power shortages and economic pressures, Egypt’s plan to raise electricity prices has been delayed several times. However, according to Reuters, the new price adjustments will be implemented soon.
Changes in Solar and Storage Demand in Egypt With the continued reduction in the costs of photovoltaic (PV) and energy storage systems, these technologies have become an ideal choice for reducing electricity costs and ensuring power supply. It remains unclear whether there will be a surge in demand for PV storage systems due to rising electricity prices in Egypt, but the market outlook is worth monitoring.
According to local sources, there has been a noticeable increase in job postings for solar-related positions by Egyptian companies on social media, which may reflect rising demand for PV. However, based on China’s export data to Egypt this year, export values have fluctuated significantly, and no clear growth trend has emerged. A report from Environment + Energy Leader states that Egypt is the largest renewable energy market in Africa, with vast areas available for solar and wind power plants, offering a potential installed capacity of up to 99.7 GW. The government is also providing tax incentives for green hydrogen projects, aiming to expand their market share in Egypt and support the country’s energy transition.
According to Egyptian Minister of Electricity Mohamed Shaker, by 2025, renewable energy will account for 42% of Egypt’s energy mix. Egypt introduced a comprehensive sustainable energy strategy to accelerate the replacement of traditional fossil fuels with renewable energy, reduce the proportion of oil and chemical energy as much as possible, and maximize the share of renewable energy, particularly solar power.
Major Solar-Storage Deals in Egypt In recent years, the Egyptian government has consistently issued incentives and policies to enhance support for solar power. Renewable Energy Strategy: In October 2016, Egypt’s Supreme Energy Council approved the “Egypt 2035 Energy Strategy,” which aims for 42% of the country’s electricity to come from renewable energy by 2035, with solar power playing a key role (accounting for 22%). The Egyptian government has also set a target for renewable energy to make up 60% of its power generation by 2040.
Recently, AMEA Power signed a PPA agreement with the Egyptian Electricity Transmission Company for two projects, including the development of Africa’s largest solar PV project and the first utility-scale battery energy storage system (BESS) in Egypt.
The first project involves the construction of a 1000 MW solar PV plant and a 600 MWh BESS in the Benban area of Aswan Province, which will be the largest BESS project in Africa, marking a historic milestone.
The second project is a 300 MWh battery storage expansion to the company’s existing 500 MW Abydos solar PV plant, which is currently under construction in Kom Ombo, Aswan Province. The project is expected to go into operation in October 2024 and will be the first in Egypt to use a utility-scale BESS solution. In the context of accelerating energy transition, storage systems, which help increase the utilization of renewable energy and balance grid loads, are expected to see rapid demand growth. As the deployment of renewable energy continues, with storage systems becoming cheaper and policies and profit models improving, Egypt’s demand for energy storage is expected to accelerate.
Source：TrendForce