{"id":543592,"date":"2022-02-08T03:51:45","date_gmt":"2022-02-08T03:51:45","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/strategic-investment-in-egypts-solar-energy-is-among-the-most-effective-ways-to-decarbonize-says-new-africa-wide-study\/"},"modified":"2022-02-08T03:51:45","modified_gmt":"2022-02-08T03:51:45","slug":"strategic-investment-in-egypts-solar-energy-is-among-the-most-effective-ways-to-decarbonize-says-new-africa-wide-study","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/strategic-investment-in-egypts-solar-energy-is-among-the-most-effective-ways-to-decarbonize-says-new-africa-wide-study\/","title":{"rendered":"Strategic investment in Egypt\u2019s solar energy is among the most effective ways to decarbonize, says new Africa-wide study"},"content":{"rendered":"

<\/a> Strategic investment in Egypt\u2019s solar energy is among the most effective ways to <\/strong>decarbonize, says new Africa-wide study:<\/strong> Investors wanting to make substantial climate-related impact in Africa should be channeling their USD into particular strategic investments \u2014 with solar farm construction in Egypt being one of the most effective, according to a new continent-wide study (pdf)<\/a> conducted by Oxford University\u2019s Environmental Change Institute<\/a>, published last month. The study used multiple factors to identify sites where solar and wind farm investments would pack the most punch in decarbonizing the energy sector.<\/p>\n

Solar plant construction in strategic locations in Egypt should be an investment priority,<\/strong> if the goal is a rapid shift away from our current fossil fuel reliance, the study concludes. It would also bring clear financial benefits, it adds.<\/p>\n

The bottom line for Egypt: the electricity sector could save much by constructing solar farms, rather than fossil fuel alternatives,<\/strong> the new report tells us. The levelized cost of electricity<\/a> (LCOE) in constructing solar farms in optimum zones in Egypt is 29.7% lower than investing in combined-gas turbines, and 37% lower than investing in diesel generators, says the study. LCOE \u201crepresents the full life-cycle of electricity generation technologies per MWh of electricity produced,\u201d enabling comparison between the generation costs of different technologies, it adds.<\/p>\n

And avoid potential carbon lock-ins \u2014<\/strong> where planners effectively commit to a certain amount of greenhouse gas emissions because they\u2019ve invested in expensive infrastructure in heavily-emitting industries. A gas-fired power plant has an estimated life-cycle<\/a> of 30 years, while the life-cycle of a cement plant is around 40 years.<\/p>\n

This is especially relevant when considering how existing fossil fuel plants<\/strong> had set a ceiling for renewables growth<\/strong>, industry insiders told us a few years back. <\/strong>Egypt has faced an electricity supply glut \u2014 seeing us able to generate around 60 GW but with a peak demand of only around 30 GW \u2014 which has hurt<\/a> the growth of solar and utility-scale renewables in the country.<\/p>\n

Egypt\u2019s \u201ccurrent heavy electricity dependence on fossil fuels means there\u2019s great potential for emissions reduction from the power sector,\u201d <\/strong>the Oxford report notes. Some 165.7 bn kWh of Egypt\u2019s electricity is produced by fossil fuels, it estimates. As recently as 2019, natural gas made up an estimated 77% of Egypt\u2019s electricity mix, according to data<\/a> that originally came from the BP Statistical Review of World Energy<\/a>. And though solar saw notable growth in our power generation mix between 2019 and 2020, natgas still occupies far and away the biggest share, according to the Apicorp MENA Energy Outlook 2021-25 (pdf)<\/a>.<\/p>\n

Meanwhile, our renewables are primed for substantial growth:<\/strong> Egypt\u2019s installed renewable capacity is set to rise by 68% or 4 GW in the coming five years, according to IEA estimates<\/a>. This would bring our total capacity to around 10.1 GW by 2026, up from 6.1 GW currently \u2014 and up from 3.8 GW in 2017-18 \u2014 according to the New and Renewable Energy Authority (NREA) data. Egypt has \u201c213 MW of solar PV IPP projects under construction, one 250 MW wind IPP project under construction, and 120 MW of wind capacity,\u201d which the NREA is building, according to the Apicorp report. Another 2 GW of wind and 1 GW of solar PV projects are set to be added to our capacity further down the road, it adds. Egypt \u2014 along with Jordan and Morocco \u2014 is on track to meeting its renewables targets (albeit \u201cto a lesser extent\u201d than our two regional peers), Apicorp adds.<\/p>\n

Reducing our dependence on fossil fuels isn\u2019t just about emissions reduction \u2014 it\u2019s also important for energy security, <\/strong>the Oxford report argues: Diversifying Egypt\u2019s energy mix away from fossil fuels by channeling investments towards utility-scale solar farm constructions would improve Egypt\u2019s energy security and boost its decarbonization strategy all at once, it adds. Why is this? Although natural gas may be Egypt\u2019s electricity generation powerhouse, plans to export it<\/a> and put it in our cars<\/a> could hit supply, says the Oxford report.<\/p>\n

Meanwhile, our <\/strong>ballooning population<\/a><\/strong> will also massively increase energy demand,<\/strong> the Oxford report anticipates. \u201cWith a projected population increase of 69.5 mn by 2050, the country needs a major power sector reform to meet its energy demand while complying with the obligations set out in the Paris Agreement<\/a>,\u201d it says.<\/p>\n

So why solar in particular? It isn\u2019t just our sunshine, it\u2019s also our stability:<\/strong> Egypt\u2019s high yearly average insolation (or exposure to the sun\u2019s rays) is a key factor explored by the study. But it also takes into account legal, political, environmental, socio-economic and investment risk factors. Key criteria Oxford looked at for solar and wind power placement include proximity to grid lines, road networks and settlement areas, says the report. Investors also want political stability, robust supply chains and \u201cattractive policy landscapes,\u201d it adds.<\/p>\n

Where is it suggesting we build utility-scale solar? There\u2019s so much more than Benban: <\/strong>Very high potential solar investment sites in Egypt are often found in the south and east of the country, the report indicates. These sites hit the sweet spot of high insolation, along with \u201csuitable temperatures [and] adequate land characteristics, while being close to settlement areas, grid and road networks.\u201d<\/p>\n

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