Egypt’s ambitious green energy strategy

Egypt possesses an abundance of land and high wind speeds, making it a prime location for renewable energy sources. There are currently opportunities and political will to transform the energy sector in Egypt from its current fossil fuels base to an increasing share of renewable energy; mainly wind and solar energy. Egypt intends to supply 20 per cent of generated electricity from renewable sources by 2022 and 42 per cent by 2035. IRENA estimated in 2018 that Egypt could generate as much as 53 per cent of its energy from renewable sources by 2030.

Egypt’s ambitions for a green transition requires the implementation of new policies and significant changes in both planning and operation of the power system. The challenge here is to develop a system, which can accommodate and adjust efficiently to the increasing shares of variable renewable energy from wind and solar PV. In this field, Denmark has vast experience and is one of the world-leading countries. Successful integration of renewable energy in Egypt is thus one of the focal points in the cooperation between the Danish Energy Agency and the Egyptian energy authorities. 

Due to its geographical position in the region, Egypt has the potential to become a driver for green transition in North Africa and the Middle East. Greater ambitions and a stable, well-regulated market for renewable energy will attract energy equipment and component manufacturing and thereby create green jobs. Thus, qualified labour will be in demand to support the needs for production, installation, maintenance and operation. In turn, this will create opportunities for Egypt to become a regional hub for the design and production of energy components and increase the country’s exports.

Strategic Sector Cooperation

The Strategic Sector Cooperation (SSC) programme with Egypt builds on a relationship dating back to the 1990s when Denmark and Egypt started cooperating on wind energy. The SSC-programme will facilitate government-to-government collaboration making the Danish experience available and relevant in the Egyptian context. The SSC-programme focuses on the deployment and integration of renewable energy, such as solar and wind, in the Egyptian energy system and long-term energy system planning along the lines of the current Integrated Sustainable Energy Strategy for 2035. The SSC-programme is a three-year program running from 2020 to 2023.

Technical assistance is provided according to an agreed work programme and specific outputs supported by active involvement of the Danish Embassy in Cairo, including direct dialogue with local partners and supplementary support from international and local consultants.

Danish Energy Advisor in Cairo

Key to the cooperation is a Danish senior long-term energy advisor posted at the embassy to coordinate the programme, liaise with Egyptian stakeholders and provide direct technical assistance in selected areas. The Energy Counsellor has been posted at the Danish embassy in Cairo since October 2019.