By: Arab News

Egypt and China’s SANY Group has signed a memorandum of understanding to develop the country’s first wind turbine manufacturing facility and a 2-gigawatt wind power project in the North Gulf of Suez region.

The agreement, inked on Egypt’s behalf by the Egyptian Electricity Transmission Co. and the New and Renewable Energy Authority, partners them with China’s SANY Group, which specializes in cutting-edge wind turbine manufacturing technology.

It aims to supply locally manufactured equipment and components for domestic wind energy projects while exporting surplus output to regional and international markets, according to a statement.

The deal forms part of Egypt’s broader strategy to localize advanced technologies, increase the share of locally manufactured components in renewable energy projects, expand the electrical equipment manufacturing sector, and leverage the country’s trade agreements to export renewable energy products to Africa and the Middle East.

The newly signed pact also supports Egypt’s accelerated clean energy ambitions. Earlier this year, Prime Minister Mostafa Madbouly said the government aims to raise the share of renewable energy in the country’s electricity mix to 45 percent by 2028, bringing forward its previous 2030 target.

“On the sidelines of the signing, the Prime Minister highlighted the importance of new and renewable energy projects in bolstering the electricity sector’s plans and diversifying energy sources. He also noted that localizing industries related to renewable energy is a fundamental pillar for enhancing energy security and the green transition,” the statement said.

He added that the government is committed to continued cooperation among all relevant state institutions and entities, in partnership with the local and foreign private sector, to implement these projects within the framework of the national energy strategy.

This includes the implementation of solar and wind energy projects and energy storage systems financed in local currency.

The state is also working to expand energy storage systems to maximize the returns from renewable energy and ensure the stability of the national electricity grid, the minister clarified.

Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, emphasized that localizing the manufacturing of electrical equipment, particularly that related to renewable energy, supports the government’s strategy to expand solar and wind energy projects using Egyptian pounds.

He explained that the Ministry of Electricity is working on the specific requirements for determining the percentage of local manufacturing in this sector.