On 20 May, a conference was held in Cairo to support the local green industry organized by the Ministry of Industry and Foreign Trade, the German Agency of Technical Cooperation (GIZ) and the Chamber of Engineering Industries.
Egypt is suffering from a real energy crisis due to growth in demand and subsidies in the energy sector, a heavy burden on the state budget. According to the Ministry of Electricity and Energy, households consume 43% of the energy, a percentage that is growing at an annual rate of 11%. Energy sources in Egypt have not been developed because the sector needs investment.
The ministry has established a plan to produce 20% of electricity from solar energy, 12% from wind energy and 8% from other sources. Italy, India and China have already announced that they will cooperate in projects in this sector. The Ministry of Industry and Foreign Trade will soon announce a public strategy to price the energy of the industrial sector (which consumes 32% of electricity produced) and set an agenda to progressively reduce such energy subsidies. The Ministry is aware of the importance of programs to rationalize consumption and focus efforts in the field of renewable energy.
Promoting the manufacture of technological components of renewable energy will permit a reduction in the imports and help create a domestic industry with a high added value and the ability to compete internationally. This will also contribute to attracting new investment. During the congress, the Ministries of Industry, Tourism, Electricity and Housing signed a cooperation protocol to review the regulations and policies in place in order to update them and so that the local industry of renewable energy technology can be activated. It also aims to establish regulatory frameworks and incentives to create an attractive climate for private investment.
Source: Al Hayat, 21/05/2013