Electricity demand was growing quite rapidly in Egypt, having increased 7.5 percent a year between FY2003-08. The rapid growth of electricity demand as well as demand for other forms of energy was resulting in a sharp increase in carbon dioxide emissions which were growing at a rate of 7 percent per year since 2000 and were expected to continue to grow at the same rate. As a result, Egypt was ranked as one of the 11 fastest growing greenhouse gas (GHG) emitters. Emissions of carbon dioxide had reached 168 million tons per year by 2007.
Steps to scaling-up renewable energy development, including enactment of new laws and regulations, to assist private wind developers including: a) a special policy for access to land, b) zero customs duties on wind equipment, c) use of the build, own operate (BOO) model for developers, d) power purchase agreements, and e) support with obtaining needed environmental, social and defense clearances. The project design focused on strategic and transformative role of creating an enabling environment for private sector. The project provided support to the Government’s strategy by addressing some of the key barriers for private sector entry into wind power development.
Egypt has excellent solar resources with electricity generating potential estimated at 73,656 terawatt-hours (TWh), while wind capacity is also quite good with an estimate of 7,200 MW commercially available in the Gulf of Suez Area. As a result of these factors, one of the key pillars of the Government of Egypt’s Energy Strategy is greater reliance on renewable energy sources.