{"id":685124,"date":"2026-02-24T00:00:00","date_gmt":"2026-02-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/"},"modified":"2026-02-24T00:00:00","modified_gmt":"2026-02-24T00:00:00","slug":"new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/","title":{"rendered":"New factories need to bring their own clean power or risk falling down the queue"},"content":{"rendered":"

As electricity demand surges and we head into the hotter months, the <\/strong>government has quietly begun screening new factories \u2014 not just by what they produce, but by how they plan to power their operations.<\/strong> Access to industrial licenses is now increasingly tied to whether a project can shoulder part of its own electricity load and do it using renewables.<\/p>\n

The shift surfaced in a late-January meeting, where two points that amount to a new <\/strong>industrial filter were indicated.<\/strong> First, the Industry Ministry gives \u201cpreferential consideration\u201d<\/a> to new and renewable energy use when it assesses applications to establish new factories to ease pressure on the grid, according to comments from then-industry minister Kamel El Wazir. Second, the Supreme Energy Council requires large, energy-intensive facilities to source \u201ca significant share\u201d of their energy needs from solar as part of the approval process.<\/p>\n

The state\u2019s preferential treatment for investors planning to use renewable energy has <\/strong>made its way into the newscycle, and not just in the industrial sector.<\/strong> The government plans to offer up 62 hospital investment projects to the private sector, prioritizing those that use clean energy, EnterpriseAM reported exclusively<\/a> yesterday.<\/p>\n

Renewables will be mandatory for licensing new industrial facilities, while remaining <\/strong>optional for existing plants. <\/strong>The first sectors in line are the metal industries, particularly steel, a government official tells EnterpriseAM. Several players have already started moving in this direction, such as EgyptAlum through its solar project with Scatec.<\/p>\n

But this is not tied to a subsidy or a tax break \u2014 it\u2019s a condition for getting a project off the <\/strong>ground quickly.<\/strong> Show up with a credible clean-power plan and you move on. Show up planning to dump the whole load onto the grid and you risk falling down the queue.<\/p>\n

Driving the move is the fact that when gas supply tightens, industry tends to be the <\/strong>shock absorber. <\/strong>Fertilizer and chemical plants have previously<\/a> faced reduced gas supplies and were temporarily shut down due to natgas supply pressure. This summer, the government is committed to having no blackouts<\/a> despite an expected demand rise of 6-7% in the hotter months of the year. <\/p>\n

The move is also about exports<\/strong>, as carbon requirements on traded goods \u2014 particularly the EU\u2019s Carbon Border Adjustment Mechanism (CBAM) \u2014 tighten and access to global markets is increasingly dependent on emission profiles, our source tells us. <\/p>\n

Industrialists who will get off lightly will mostly be big, well-financed manufacturers, <\/strong>especially exporters<\/strong>, who can treat renewables as a financeable input. For smaller entrants whose margins already swing with fuel policy volatility, it may be a tough hurdle. Much depends on whether the government\u2019s definition of a \u201csignificant share\u201d stays vague or hardens into clear thresholds that turn clean power into a fixed cost of entry \u2014 and a predictable box in the industrial licensing checklist.<\/p>\n

Industry players expect the policy to accelerate solar deployment. <\/strong>Factories that switch to solar have cut electricity bills by 25-50% across sectors, though savings are smaller for heavy users, Cairo Solar\u2019s Managing Director Hatem Tawfik tells us. Around 50% of the net-metering capacity target is already deployed across factories, as the government works toward 1 GW of installed capacity by 2030.<\/p>\n

Small- and medium-scale solar plants also carry minimal foreign currency burden<\/strong>, Tawfik has previously told us. A 10 MW solar installation costs some USD 1.5 mn, compared to roughly USD 11 mn for the same capacity under conventional power arrangements. With upfront costs recovered within two to two-and-a-half years \u2014 driven by savings from reduced gas subsidies \u2014 the economics are doing as much work as the climate argument.<\/p>\n

The move is also expected to give a boost to local solar component manufacturing<\/strong>, reinforcing a shift already underway in Egypt\u2019s solar market. Historically, the sector leaned on imports for core components, but new hubs \u2014 backed by Chinese partners and Suez Canal Economic Zone incentives \u2014 show that vertical integration is taking place in the country.<\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

Renewables will be mandatory for licensing new industrial facilities, while remaining optional for existing plants<\/p>\n","protected":false},"featured_media":685125,"template":"","categories":[7266],"tags":[72,7109,7196,151],"class_list":["post-685124","goinggreen","type-goinggreen","status-publish","has-post-thumbnail","hentry","category-going-green","tag-enterpriseam","tag-going-green","tag-industry","tag-renewables","wpautop","entry"],"acf":{"mongo_id":"52a1ac57-eb50-4ab9-9bf5-6564565af4a7","order":"11","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2025\/9\/1162.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Bring your own clean power or fall down the queue","related_issue":[685105],"teaser":"Renewables will be mandatory for licensing new industrial facilities, while remaining optional for existing plants"},"yoast_head":"\nNew factories need to bring their own clean power or risk falling down the queue - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New factories need to bring their own clean power or risk falling down the queue\" \/>\n<meta property=\"og:description\" content=\"Renewables will be mandatory for licensing new industrial facilities, while remaining optional for existing plants\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2025\/9\/1162.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/goinggreens\/new-factories-need-to-bring-their-own-clean-power-or-risk-falling-down-the-queue\/\",\"name\":\"New factories need to bring their own clean power or risk falling down the queue - 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