In an ongoing effort to expedite the adoption of renewable energy, Egyptian firm Kemet Industries and the Chinese GCL Group have struck a $500 million agreement to construct an integrated industrial complex for the localised manufacturing of solar PV.
The agreement was signed during an official visit to China by Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, over the weekend. This is part of a broader objective to increase domestic manufacturing, localise technologies, and accelerate the country's energy transformation.
According to the Egyptian Cabinet, Kemet and Suzhou Weicheng, a subsidiary of the GCL Group, will collaborate to develop the complex, which will have an annual output capacity of 5 gigawatts and span an area of 280,000 square metres.
As the North African aims to increase the share of renewable energy in its electricity mix to more than 42% by 2030 and 65% by 2040, it is leveraging its natural resources to reduce reliance on fossil fuels and strengthen long-term energy security.
Senior executives from GCL Group also reviewed the scale and growth potential of Egypt’s energy market, they also outlined the government’s strategy to prioritise renewables within the national power mix.
The two sides committed to transferring manufacturing know-how and technical expertise, increasing local value-added content in production inputs, and building domestic technical capabilities to support technological innovation and research.
“It is evident that the State has worked to prepare the climate to attract investment, opening up to the local and foreign private sectors to support the new and renewable energy sectors. Work continues in light of the National Energy Strategy, which aims for renewable energy to exceed 42% of the mix by 2030 and 65% by 2040, utilising available natural resources to maximise returns and reduce the use of fossil fuels,” the Egyptian Cabinet concluded in a statement.
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