Egypt’s electricity minister said that the government has worked hard with its development partners to overcome challenges in the electricity sector.
LONDON : Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker met with Danish Ambassador to Egypt Svend Olling to discuss improvements to investment opportunities and cooperation in their allied field of renewable energy.
The partnership is a result of an agreement between Egypt’s ministries of international cooperation and electricity and the Danish ministry of climate, energy and utilities’ energy agency. The Egyptian-Danish Energy Partnership Program (2019-2022) aims to push Egypt’s green transformation forward while also investing in a renewable future.
Shaker stated that Egypt’s government has worked hard with its development partners to overcome challenges in the electricity sector.
Among the state’s strategic aims, he said, is drawing benefits from Egypt’s natural resources, including new and renewable, as well as increasing renewable energy’s share in the electricity system. Egypt aims to increase the share of renewable energy in the nationwide electricity network to 20% by 2022 and 42% by 2035, elevating it from 5% in 2014.
Shaker said one reason Egypt is adopting a large-scale programme is to encourage the private sector to take part in initiatives that can draw investors to Egypt. Investment confidence in the country’s electricity and renewable energy sector has already increased as a growing number of local and foreign private investors take part in these projects, which include the establishment of solar power plants, hydropower facilities and wind turbines.
Many mechanisms are provided for the private sector participation, including auctions and tenders, such the establishment of 600MW solar plants toward the west of the Nile. The auctions are held by the International Finance Corporation, which approved various energy companies to be qualified.
Shaker also emphasised that the ministry looks forward to taking on electricity linkage projects with neighbouring countries that could allow Egypt to export electricity to Europe and one day be a regional energy centre.
Olling praised relations between Egypt and Denmark, which he hoped to see strengthened further. He also praised Egypt’s experience in developing its renewable energy sector.
He noted the interest held by international entities and bodies currently investing in Egypt, which is considered by many to be a critical gateway to Africa. He also expressed Denmark’s desire to further invest in the country and increase cooperation between the nations’ electricity sectors.
Cooperation between Egypt and Denmark dates back to 1969, when $560 million was invested in several fields, including culture, housing, environment, water, sanitation and renewable energy, according to Egypt’s ministry of international cooperation.