The government is weighing a USD 1 bn integrated quartz-to-panel solar plant in Zafarana

The government is weighing a fully integrated USD 1 bn solar panel plant in Zafarana that would run the entire value chain, from domestic quartz ore to finished panels. Sitting on 917 feddans, the plant would be structured as a public-private partnership aimed at localizing renewable-component manufacturing. No investor or timeline has been disclosed.

Not the first: The Zafarana plant joins a similar project already underway in New Alamein. This site, run by Alamein for Silicon Products, lined up a USD 140 mn bank loan earlier this year to turn local silica sand into the high-purity silicon needed for solar cells.

Why it matters: Bringing solar manufacturing to Zafarana, the country’s wind-energy capital, signals a major shift toward hybrid power generation. More importantly, local production addresses the biggest bottleneck for domestic developers: roughly 70% of solar project costs are currently denominated in USD due to imported panels and cells.

IN CONTEXT- There is a Chinese-led solar FDI wave concentrated in the Suez Canal Economic Zone (SCZone). In January, China’s Elite Solar inaugurated its USD 116 mn solar component factories in Sokhna. Meanwhile, Atum Solar broke ground on a USD 220 mn complex last December to produce an annual 2 GW each of solar cells and modules, plus 1 GWh of battery storage systems. They are joined by Sunrev Solar, which is building a USD 200 mn integrated solar component complex. Chinese glassmaker Kibing Group is also planning a USD 685 mn solar panel glass factory in Sokhna to localize the heavy glass sheets that make up most of a panel’s weight.

On exports: The state-backed Arab Organization for Industrialization (AOI) is establishing a USD 200-300 mn factory with Sweden’s Sunshine Pro to export 1 GW of panels to Europe annually. AOI is also working on a separate USD 100 mn solar factory with Omani investors to feed Gulf markets.