By: Economy Middle east

Egypt’s government is preparing to launch a national program to install rooftop solar systems on around 7,000 factories, with a target installed capacity of up to 1,000 MW.

The initiative, dubbed the “Industrial Solar Initiative,” was discussed on Monday, May 11, during a meeting chaired by Prime Minister Mostafa Madbouly and attended by ministers responsible for industry, electricity, finance and petroleum.

Industry Minister Khaled Hashem said the initiative would cover roughly 10% of the country’s licensed factories. The program assumes an average installed capacity of about 150 kW per factory, with larger systems planned for energy-intensive facilities.

Reducing Pressure on the Grid

The project aims to use around seven million square meters of industrial rooftop space, enabling factories to generate part of their own electricity. Authorities said the program has a dual objective: lowering production costs for manufacturers while easing pressure on the national grid and reducing natural gas consumption.

The government also sees the initiative as a way to strengthen industrial energy security amid volatile energy prices and supply constraints. Small and medium-sized manufacturers, along with sectors with high daytime electricity demand, are among the main targets.

Electricity Minister Mahmoud Esmat said the program could also reduce the use of fossil fuels in power generation.

Export Competitiveness and Carbon Targets

Beyond energy considerations, Cairo is also seeking to improve the competitiveness of its industrial exports. Reducing the carbon footprint of manufactured goods is becoming an increasingly important requirement for access to certain markets, particularly in Europe, as environmental regulations tighten.

Authorities said they aim to finalize the initiative’s financing framework quickly with several financial institutions. The government also plans to extend the program to factories in free zones and investment zones ahead of final Cabinet approval.