In an era of profound reshaping of the global energy structure, the deserts and sunshine in the Middle East are experiencing an unprecedented reevaluation of their value. In the first half of 2025, the global renewable energy generation surpassed coal for the first time in history, marking a decisive turning point in the energy transition. In this wave, the Arab world represented by Egypt is no longer just a symbol of oil, but is positioning itself as the future hub of clean energy with unprecedented ambition. From Saudi Arabia to Kuwait, and now to Egypt, which has announced a $15 billion investment to build a 10 gigawatt clean power base, a cross-border green competition is unfolding. This is not only a domestic revolution related to energy self-sufficiency and emission reduction commitments, but also a strategic breakthrough for Middle Eastern countries to redefine their role in the global energy map, striving to transform the inexhaustible light and wind in the vast desert into hard power to drive the new economy and lead regional transformation.

From energy crisis to global strategy

In the summer of 2024 in Egypt, high temperatures swept across the country, and a large-scale power outage plunged the entire country into darkness. This power outage not only exposed the vulnerability of Egypt's power system, but also accelerated the government's determination to transition to energy.

The power outage event catalyzed a series of substantial changes, and the government announced plans to add 3 gigawatts of solar and wind energy projects by the summer of 2025.

Egypt has an enviable natural endowment -96% of the country's territory is desert, with annual sunshine hours of up to 2800-3200 hours. The light intensity in areas such as the Gulf of Suez remains stable and high throughout the year. These conditions make Egypt a talented player in solar energy development.

At the same time, Egypt's unique geographical location - at the intersection of Europe, Asia, and Africa - makes it a strategic pivot that radiates to the three major markets of Europe, Africa, and the Middle East. This location advantage makes it an ideal choice for international energy companies to globalize their layout.

Egypt's ambition for clean energy

Egypt has set a series of ambitious energy targets. According to its 2030 vision, it is planned to achieve 42% of energy from renewable sources by 2030. The longer-term goal is to increase the share of renewable energy generation to 60% by 2040.

To achieve these goals, Egypt has implemented multiple national plans. The most notable of these is the Water, Food, and Energy Flagship Program, known as NWFE, which aims to increase renewable energy generation capacity by 10 gigawatts, with an investment of approximately $10 billion, and gradually phase out 5 gigawatts of fossil fuel power generation by 2028.

The Egyptian Electricity Utility and Consumer Protection Regulatory Authority has cancelled the "electricity integration" fee for solar energy projects connected to the grid and implemented a net metering system with a maximum capacity of 10 megawatts to encourage the development of renewable energy.

International capital flows into Egypt

Driven by favorable policies, Egypt's new energy sector is experiencing an investment boom. Masdar Company from the United Arab Emirates has signed an agreement with Egypt to develop a 10 gigawatt onshore wind power project, which will become one of the largest wind farms in the world upon completion.

Norwegian company Scatec has laid out multiple major projects with a total investment of 3.6 billion US dollars within the framework of Egypt's "NWFE" program, covering multiple clean energy fields such as photovoltaics, energy storage, green hydrogen/green ammonia, and wind power. In 2024, the Aswan Benban photovoltaic project in southern Egypt officially broke ground. The project is planned to be 1 gigawatt of photovoltaic and 600 megawatt hours of energy storage, making it the largest integrated photovoltaic and storage power station in Egypt.

International financial institutions have also provided strong support for the development of new energy in Egypt. For example, the European Bank for Reconstruction and Development has led the financing of $74.1 million for a 200 MW wind farm in the Ras Gharib region of Egypt. The European Bank for Reconstruction and Development has invested over 13.5 billion euros in 206 projects in Egypt.

Chinese power covering the entire industry chain

In the field of new energy in Egypt, the participation of Chinese companies is particularly noteworthy. Chinese enterprises have achieved full industry chain coverage from upstream raw materials to downstream power plants and energy storage systems.

In March 2025, China Chemical Tianchen Company signed an EPC general contract with Egypt's Alaman Silicon Industry Company for a 45000 tons/year industrial silicon project, which will fill the upstream gap in Egypt's photovoltaic power generation industry chain and silicon-based new materials industry chain. China Southern Glass Group plans to invest 1.755 billion yuan to build a new photovoltaic glass production line in Egypt.

In terms of project construction, the Kangwengbo 500 MW photovoltaic power station, which is contracted and built by China Energy Engineering International Group and Zhejiang Thermal Power Joint Venture, is the largest single photovoltaic project in Egypt. Tianhe Energy Storage has built a 300 megawatt hour battery energy storage system in Aswan Province, Egypt, which is the first facility in Egypt to integrate solar energy and battery energy storage.

Chinese enterprises not only participate in project construction, but also actively promote technology localization. Dr. Mahmoud Ismat, the Minister of Electricity and Renewable Energy of Egypt, has clearly stated that conditions and control measures are being developed to increase the proportion of local components in renewable energy projects to 60%.

Synchronized promotion of energy storage and grid upgrading

With the increase of renewable energy projects, Egypt has begun to realize the importance of energy storage systems and grid upgrades. Norwegian company Scatec has signed a 25 year enterprise power purchase agreement with Egyptian aluminum company, planning to build a 1.1 GW photovoltaic power station with a 100 MW/200 MWh energy storage system. The Red Sea integrated wind, solar and energy storage project plans for 250 MW of photovoltaic and 1.3 GWh of energy storage, mainly providing 24-hour green electricity for coastal tourist areas.

At the same time, modernizing the power grid has become a key focus of Egypt's energy transition. Egypt is actively updating and strengthening its unified power grid to adapt to the increasing installed capacity of new energy.

Egypt is striving to make it a regional energy center and electrical equipment manufacturing center, and modernizing the power grid is an important component of this goal.

Cost advantages and market opportunities

The cost of photovoltaic power generation in the Middle East is significantly lower than the global average. The average cost of global photovoltaic power generation is about $42 per megawatt hour, while the average cost in Middle Eastern countries is only $18 per megawatt hour. Egypt has further reduced the operating costs of photovoltaic projects and enhanced its attractiveness to international investment by leveraging its cost advantage in the Middle East region.

Compared to the US market, Egypt and the Middle East provide a more stable trading environment. In recent years, the United States has imposed high tariffs on Chinese photovoltaic products, with some comprehensive tax rates even exceeding 100%, while most Middle Eastern countries only face equivalent tariffs of 10%.

These advantages have made Egypt an important choice for Chinese photovoltaic companies' global layout, and have also made it occupy an increasingly important position in the international energy investment landscape.

When the first batch of turbine blades at the Las Garib wind farm begins to rotate, and when the photovoltaic panel arrays on the Aswan Desert form a blue ocean, Egypt is evolving from an ancient civilization cradle on the Nile River to a green hub on the global new energy map. Keywords: Middle East news and information, Middle East international news

With more solar panels reflecting on the surface of Lake Nasser, the country's energy structure is undergoing a silent yet profound transformation. Egypt's transformation is not only a success of its national energy strategy, but also a contribution to global climate action - reducing millions of tons of carbon emissions annually, which will have an impact far beyond national borders and become an indispensable part of the global energy transition wave.Editor/Cheng Liting