The Electricity Ministry launched a website earlier this month to streamline the installation of solar panels for households and companies and connect them to the national power grid, a move which aims to increase the share of renewables in the country’s energy mix, according to a statement from the ministry.
Egypt has big renewable energy ambitions: The platform puts the country on track to meet its green targets as it eyes generating 42% of its electricity from renewable sources by 2030. The government wants renewables to make up almost 12% of electricity output this fiscal year.
A one stop shop for all things solar power: The website offers guidance on the installation of PV cells, the costs involved, the needed capacity, and the required documents in addition to listing the qualified installation companies. It also facilitates communication between customers and the PV installation companies and allows customers to file complaints, track the status of their installation requests, and have access to reports and statistics on solar energy projects.
It classifies PV installation companies into four categories based on their ability to implement different power capacities:
- Platinum includes the 24 companies that can establish 3+ MW solar power stations;
- Gold includes the 35 companies that can establish up to 3 MW solar power stations;
- Silver includes the 53 companies that can establish up to 500 KW solar power stations;
- Bronze includes the 36 companies that can establish up to 50 KW solar power stations.
The platform will deter false advertising practices, as it lists qualified companies and their work portfolio — the number of stations they’ve implemented and their capacities — Hatem Tawfik, managing director of solar panel installation company Cairo Solar, told Enterprise.
Faster approvals + more small- and medium-scale solar plants are expected: The platform is expected to accelerate the process of granting approvals to install solar energy stations, which currently takes 30-150 days, Tawfik said. It’s also expected to prompt the installation of small- and medium-scale solar plants — up to 10 MW plants — because they cost less to connect to the national power grid and are less vulnerable to weather conditions, he added.
Gov’t is offering incentives to increase the use of solar power: The Electric Utility and Consumer Protection Regulatory Agency (Egyptera) in early 2023 scrapped integration fees for solar plants producing up to 10 MW of power. The fees were originally introduced in 2022 on solar plants producing more than 500 KW of power to help defray the costs of connecting to the national grid, a move which faced backlash from many industry players who viewed the fees as a threat to Egypt’s nascent solar sector.
It’s not clear if integration fees could be reinstated: While it’s not clear whether the integration fees were canceled permanently or temporarily, their permanent scraping would incentivize the residential and commercial use of solar power, Tawfik said. However, there are concerns about long-term investments in solar plants in case the fees are reinstated, he added.
Want to set up a solar power plant for your house or office? The first step is for applicants, who must either own the site on which the station will be implemented or have a 25-year usufruct right to the land, to select a company to install the station. Then, the company will inspect the site and assess the customer’s energy consumption to calculate the required station capacity.
What’s next? After that, the company will submit a technical report to the designated electricity distribution company for review and after receiving the green light it will proceed with construction. Once completed, the distribution company will inspect the station before connecting it to the national grid.
Want to know more? Head to the website’s FAQ section.
Your top green economy stories for the week:
- Egypt’s first-ever SAF production project is underway: The Oil Ministry has deviseda plan that will see state-owned firm Egyptian Petrochemicals Holding Company producing the country’s first sustainable aviation fuels (SAF).
- Gov’t to set up a “nature fund:” The Environment Ministry is looking to establish a nature fund in cooperation with local banks and development partners to implement biodiversity conservation projects with the private sector. (Statement)
- Green Hurghada secures GEF funding: Multilateral environmental fund Global Environment Facility (GEF) will invest over USD 3 mn into the Green Hurghada project being carried out by the United Nations Industrial Development Organization and the Environmental Affairs Agency.