Cairo: Egypt's renewable energy sector is on the verge of a significant expansion, with plans for large-scale solar panel factories to commence production in early 2026 using up to 90 percent locally made components, as announced by the country's investment chief.

According to State Information Service Egypt, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), revealed at the Directors' Climate Forum in Cairo that these projects symbolize a new phase in Egypt's transition towards green industry. This initiative is bolstered by recent legislative and procedural reforms aiming to foster such advancements.

Heiba elaborated on the introduction of a new law providing incentives for green hydrogen production, emphasizing that environmental performance has been integrated as a key criterion for investment incentives. He noted that projects with superior environmental standards receive greater benefits, citing that electric vehicle producers enjoy more incentives compared to those manufacturing traditional fuel-powered cars.

Furthermore, Heiba pointed out GAFI's initiatives to enhance environmental awareness among investors. Over the past eight months, the authority has conducted a series of seminars to elucidate the European Union's Carbon Border Adjustment Mechanism (CBAM), slated for implementation in 2026.

Heiba also noted the significant European and Chinese investments attracted by GAFI in the renewable energy sector. These investments aim to aid Egyptian firms in reducing their carbon footprint, solidifying the sector as a top priority in the nation's investment strategy.

Heiba encouraged the business community to engage with Egyptian universities and research centers, following Egypt's accession to the EU's Horizon Europe innovation program. This program supports research in sustainable agriculture, water management, and food security, aligning with the country's sustainable development goals.