
The proposed investment plan in wind and solar projects comes as the nation’s New and Renewable Energy Authority is seeking to generate 20% of its power from renewables by 2020, according to media sources.
According to investment bank EFG Hermes, Egypt must install 5.5GW of wind power, and 2.5GW of solar power capacity to promote the growth of renewable energy sector.
Egypt is signing bilateral agreements with private developers and is calling for build-own-operate and build-operate-transfer tenders for renewable energy projects.
It is also ensuring currency stability for settling renewable energy tariffs and funding the capital expenditure requirements of power projects.
EFG Hermes infrastructure private equity managing director Bakr Abdel-Wahab said: "Egypt’s renewable energy sector is very promising and will become substantially more so as roadblocks including currency convertibility are cleared.
"To be able to raise equity for these projects, for example via a dedicated renewable energy fund, investment managers require immediate tangible opportunities for investment. Investors do not prefer to hold commitments without disbursements for excessing periods.
"We would also expect that larger developers will consolidate projects and develop strategic partnerships within the sector, resulting in the acceleration of renewable energy development."
EFG Hermes is contemplating plans to set up a $200m renewable energy fund to spur wind and solar projects in Egypt and the wider region.
Image: Egypt’s New and Renewable Energy Authority is seeking to generate 20% of its power from renewables by 2020. Photo: courtesy of Naypong / FreeDigitalPhotos.net.