Why renewable energy is Egypt’s next big opportunity

Economist David Ricardo once argued that trading comparatively competitive goods across countries optimizes economic efficiency and maximizes profits. In the twenty-first century, the trade of renewable energy has redefined comparative advantage, offering resource-rich nations such as Egypt a unique opportunity.

Historically, Egypt’s exports have been dominated by petroleum products, cotton, textiles, and chemicals. However, as the global energy landscape evolves, Egypt stands on the brink of transformation. The country is on the cusp of harnessing its renewable energy potential to meet domestic demand, reduce its reliance on fossil fuels, and emerge as a leader in clean energy exports.

For Egypt to achieve this, however, it must first address critical internal challenges, such as its dependence on natural gas for electricity generation and its underdeveloped renewable energy infrastructure. Achieving energy self-sufficiency is a necessary precursor to realizing the country’s green energy export ambitions.

Tapping into endless sunshine, Egypt is endowed with abundant sunshine. It boasts some of the highest solar irradiance levels in the world, ranging from 2,000 to 3,200 kilowatt hours (kWh) per square meter annually. With more than 3,500 hours of sunshine per year and ample open space, regions such as the Western Desert and Upper Egypt hold vast, untapped potential for solar energy development.

Several projects already in the works highlight this potential. The Benban Solar Park, one of the world’s largest solar installations, currently has a capacity of 1.8 gigawatts (GW), with plans for significant expansion. Upcoming developments include AMEA Power’s additional 2 GW project with 900 megawatt hours (mWh) of battery storage, and the Masdar/Hassan Allam Utilities/Infinity consortium’s planned 300 MW expansion at Benban alongside a 900 MW project at Dakhla Oasis (1.2 GW in total). Elsewhere, Abydos Kom Ombo Solar PV Park will host a 500 MW facility, and the Masdar consortium signed another significant deal with over 6 GW of new solar capacity, 4 GW of new solar manufacturing capacity, and 2 GW of new battery manufacturing capacity.