The gov’t is setting up two solar plants with EU funding: The Madbouly government unveiled its plans to build two solar power plants for the state-owned Egyptian General Petroleum Corporation (EGPC) worth over EGP 1 bn to be financed by a grant from the European Union, the Oil Ministry said in a statement.

Plant #1: The first plant — an EGP 550 mn project — will generate some 10 MW of power for EGPC subsidiary Assiut Oil Refining Company and is expected to be completed in 11 months. The government has tapped a consortium of state-owned petroleum-focused contractors Enppi and Petrojet to carry out the project.

Plant #2: Another EGP 500 mn will go towards a 6.5 MW capacity solar energy project for the EGPC, the statement said without disclosing any further details.

Where is the money coming from? The entirety of the projects’ cost will be covered by a grant from the EU. While the statement doesn’t disclose if the grant is part of the recently announced EUR 7.4 bn aid package we’re getting from the EU, it could be part of the EUR 600 mn in grants the bloc is giving us. The EU also earmarked EUR 35 mn to develop our renewable energy capacities under the government’s Nexus for Food, Water, and Energy initiative in 2022.

Remember: The government wants to generate 42% of its electricity from renewable sources by 2030, and wants renewables to make up almost 12% of electricity output this fiscal year.

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