Egypt, UAE, China sign MoU to build 2 solar energy manufacturing plants
Egypt, the United Arab Emirates (UAE), and China signed on Wednesday a memorandum of understanding (MoU) to establish two solar energy manufacturing plants in the North African country.
The agreement, witnessed by Egyptian Prime Minister Moustafa Madbouly and UAE Minister of Industry and Advanced Technology Sultan Al Jaber, will see the establishment of two solar energy manufacturing facilities: one for producing 2 GW solar cells and another for manufacturing 2 GW solar panels.
The Egyptian Ministry of Industry, represented by the Industrial Modernisation Centre (IMC), will collaborate with Global South Utilities (UAE) and China’s JA Solar Technology Co., Ltd. to implement the two projects. The government will provide various incentives, including tax benefits and support for local supply chains, to facilitate the project’s success.
Supporting Industrial Growth and Renewable Energy Goals
Prime Minister Madbouly emphasised the government’s focus on industrial development as a cornerstone for achieving sustainable development, enhancing local production, boosting exports, and supporting the national economy. He reiterated President Abdel Fattah El-Sisi’s directives to eliminate obstacles for industrial growth and maximise Egypt’s potential in the sector.
The agreement aligns with Egypt’s 2035 Sustainable Energy Strategy, aiming to meet rising energy demand, improve efficiency, and transition to renewable energy while bolstering energy security, he added. It also supports the development of clean energy infrastructure and offers innovative energy storage solutions for local and regional markets.
About The Solar Manufacturing Plants
Kamel Al Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, said IMC would provide data and investment incentives, including tax benefits, utilities, and local supply chains, while facilitating discussions with potential partners and stakeholders.
The first plant, dedicated to solar cell production with an output capacity of 2 GW, will focus on exports and involve an estimated $138 million in investments. The second plant, aimed at meeting domestic demand, will also have a 2 GW capacity and require $75 million in investments. It will initially assemble solar panels and later increase local components like glass and aluminum.
JA Solar will conduct feasibility studies for the plants and collaborate with the IMC to secure necessary government incentives. Global South Utilities will support JA Solar throughout the planning and development process.
The agreement represents a significant step toward Egypt’s goals for localising green industries and achieving 5 per cent of its GDP from green projects by 2030, while positioning itself as a leader in renewable energy production.
Attribution: The Egyptian Cabinet
