Launching the "Industrial Sun" plan to lay out the entire industry development chain, Egypt accelerates the green transformation of energy (international perspective)
The Egyptian government recently launched the "Industrial Sun" renewable energy special plan, which plans to install distributed photovoltaic power stations on the roofs of about 7000 factories nationwide, with a total installed capacity expected to reach 1 gigawatt, in order to alleviate the power supply pressure during the summer electricity peak, reduce enterprise electricity costs, and promote the green and low-carbon transformation of the industrial sector. Analysis suggests that this measure is the latest layout for Egypt to accelerate the large-scale application of photovoltaic power generation and promote the green upgrading of energy structure, marking the further extension of the country's renewable energy development to industrial terminal scenarios.
Egypt has abundant solar energy resources and is one of the markets with the greatest potential for new energy development in West Asia and North Africa. According to the latest official data from Egypt, as of the first half of 2026, the country's total installed capacity of renewable energy is about 9.5 gigawatts, of which the installed capacity of solar energy is 3.5 gigawatts, making it the largest pillar of renewable energy. To promote the green transformation of energy, Egypt continues to strengthen top-level design and policy guarantees. According to the national energy strategy, Egypt plans to increase the proportion of renewable energy in its power structure to over 42% by 2030 and further increase it to over 60% by 2040. From fiscal year 2025 to 2026, the Egyptian government will allocate approximately $2.8 billion to the fields of electricity and renewable energy, almost doubling the previous fiscal year's allocation of approximately $1.5 billion.
In order to promote the effective implementation of the "Industrial Sun" plan, the Egyptian government provides supporting support in various aspects such as approval process, financing support, and operation and maintenance services. According to local regulations, photovoltaic systems with an installed capacity of less than 500 kilowatts are subject to a fast approval process. Factories can connect photovoltaic power generation to the grid for self use without special permits, significantly reducing the approval cycle for rooftop photovoltaic projects participating in the plan and lowering construction and operation costs. At the financing level, the Egyptian Ministry of Finance is collaborating with multiple banks and financial institutions to study special support programs; The second largest state-owned bank in Egypt, Bank of Egypt, has launched a special loan for photovoltaic modules to solve the funding problem for enterprise installation. In January of this year, the Egyptian Ministry of Electricity and Renewable Energy signed an agreement with the Arab Organization for Industrialization to jointly establish a professional operation and maintenance company responsible for the testing, preventive maintenance, performance monitoring, and technical support of building rooftop photovoltaic systems nationwide, ensuring the long-term stable operation of projects.
Egyptian Minister of Industry Khalid Hashim stated that the "Industrial Sun" plan will help consolidate Egypt's advantages in regional green transformation and clean supply chains, and solidify the foundation for sustainable national growth. Osama Kamal, Chairman of the Energy, Environment, and Human Resources Committee of the Egyptian Senate, stated that excessive reliance on a single energy source carries significant risks, and the transition to renewable energy is crucial for ensuring national energy security.
Relying on its abundant solar energy resources, Egypt adheres to a combination of centralized development and distributed applications, continuously expanding the coverage of photovoltaic power generation. In terms of centralized power plant layout, Egypt relies on desert resources to build large-scale photovoltaic bases. The Aswan region in southern Egypt has scarce rainfall and abundant sunshine, making it an ideal area for the development of photovoltaic power generation. The Benban Photovoltaic Industrial Park, located in the desert area on the west bank of the Nile River in Aswan Province, covers an area of 37 square kilometers and is a power complex consisting of 41 solar power plants with a planned total installed capacity of over 1.5 gigawatts. The industrial park is divided into 32 project areas and has attracted over 30 companies to participate in its development. It has been awarded the "Best Arab Government Infrastructure Development Award" and has become a demonstration project for Egypt's renewable energy strategy. In terms of expanding the application of distributed photovoltaic scenarios, in addition to industrial plants, Egypt is gradually covering municipal facilities, new communities and other areas, constantly tapping into the power generation potential of idle resources.
In order to solve the problem of new energy consumption and ensure the stability of the power grid, Egypt is simultaneously promoting energy storage facilities and upgrading the power grid, achieving the integrated development of photovoltaic power generation and energy storage systems. At present, the Suez Canal Economic Zone, Aswan, Kina and other places are accelerating the layout of independent energy storage power stations that are matched with photovoltaic power stations, upgrading substations and dedicated transmission lines, and continuously improving the renewable energy supply network. The Egyptian Electricity Transmission Company has signed a power purchase agreement with foreign renewable energy developers to construct a photovoltaic power station with an installed capacity of 1.95 gigawatts and a 3.9 gigawatt hour battery energy storage system in Minya Province; Another approved "Nefer Minya" photovoltaic storage project plans to construct a 1.2 gigawatt photovoltaic power station and support a 600 megawatt hour battery energy storage system.
With the continuous expansion of the industrial scale, Egypt's renewable energy development is realizing a full chain development model from energy development to equipment manufacturing and resource deep processing collaborative promotion. Egyptian President Sisi recently held a work conference in the city of El Alamein to study the construction of new energy projects, energy structure transformation, and other issues. He called for accelerating the construction of energy storage systems, relying on battery energy storage to enhance grid regulation capabilities, ensuring stable integration of new energy into the grid, and accelerating the localization production of equipment such as solar panels. Hossam Haiba, CEO of the Egyptian Investment and Free Zone Authority, stated that the establishment of local photovoltaic manufacturing capacity marks an important step in Egypt's transition to renewable energy, which will significantly enhance the industry's independent and controllable capabilities and regional competitiveness.
The cooperation between China and Egypt in the field of photovoltaic power generation continues to deepen, covering multiple aspects such as power station construction, equipment supply, technical support, and localized manufacturing. Chinese companies have been deeply involved in the construction of multiple photovoltaic projects in Egypt, from our photovoltaic industrial park to the Aswan Kon Onpo photovoltaic power station. The "Fangjianbei" integrated photovoltaic energy storage project, which was put into operation at the beginning of this year, is currently the largest photovoltaic energy storage integrated power station in Egypt, capable of meeting the electricity needs of about 1.6 million households. Chinese enterprise Yuanjing Energy provides a new power system and artificial intelligence energy storage technology for the project, ensuring stable operation of the power station in high-temperature desert environments while flexibly responding to grid dispatch.
In addition, several Chinese photovoltaic companies have settled in the Suez Canal Economic Zone, building manufacturing bases for solar cells, modules, and energy storage systems, promoting localized production of core modules, and helping Egypt build a regional renewable energy industry center.
Industry insiders say that Egypt, based on its resource endowment, is accelerating the layout of the entire photovoltaic power generation industry chain. This is not only a strategic choice to ensure national energy security and achieve low-carbon development, but also a demonstration and driving role for the green transformation of energy in West Asia and North Africa. As China Egypt renewable energy cooperation continues to deepen and solidify, both sides will reap more mutually beneficial and win-win results in the field of green development.