Egypt to launch large-scale solar panel production in early 2026 – GAFI

Egypt’s renewable energy sector is poised for major expansion, with large-scale solar panel factories expected to begin production in early 2026 using up to 90 per cent locally made components, the country’s investment chief said on Monday.

Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), told the Directors’ Climate Forum in Cairo that the projects will mark a new phase in Egypt’s green industrial transition, supported by recent legislative and procedural reforms.

Heiba said a new law offering incentives for green hydrogen production has taken effect, while environmental performance has been added as a key criterion for investment incentives. “Projects with higher environmental standards receive greater benefits — for example, electric vehicle producers enjoy more incentives than those manufacturing traditional fuel-powered cars,” he said, according to a GAFI statement.

Heiba also highlighted GAFI’s efforts to raise environmental awareness among investors, noting that the authority has held a series of seminars over the past eight months to explain the European Union’s Carbon Border Adjustment Mechanism (CBAM), due to be implemented in 2026.

He added that GAFI has attracted significant European and Chinese investments in renewable energy to help Egyptian firms lower their carbon footprint, making the sector a top priority in the country’s investment strategy.

Heiba urged the business community to collaborate with Egyptian universities and research centres following Egypt’s accession to the EU’s Horizon Europe innovation programme, which supports research in sustainable agriculture, water management, and food security.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser