Egypt's Heavy Industry Shifts to Solar Amid Rising Energy Costs
Egyptian manufacturers are investing in solar energy in response to a drastic increase in energy import costs, which rose from $1.2 billion to $2.5 billion between January and March 2023. This pivot aims to reduce operational expenses and enhance energy reliability, aligning with national sustainability goals.
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Egypt's industrial sector is responding to a significant rise in energy import costs by investing in solar energy solutions. The energy bill surged from $1.2 billion in January to $2.5 billion in March, prompting both government-led measures to curb consumption and a shift to renewable energy by manufacturers.
Initiatives include optimizing operational hours and increasing reliance on solar installations, exemplified by IRSC's solar project for Oriental Weavers, which will generate 4.5 GWh annually. Additionally, a 30-year PPA between IRSC's subsidiary and El Nahda Cement will establish a 27 MW solar plant, enhancing energy reliability while minimizing upfront costs. As the industry adapts, emphasis is placed on integrated energy strategies rather than complete independence from traditional sources, aiming for greater control and resilience amid ongoing global energy volatility.
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