Cairo: The Cabinet's Information and Decision Support Center (IDSC) has issued a report that outlines significant opportunities for localizing the manufacturing of solar panels in Egypt. The report emphasizes the potential for Egypt to capitalize on the burgeoning global demand for photovoltaic solar energy technologies.
According to State Information Service Egypt, the global photovoltaic solar energy market reached approximately 447 gigawatts in 2023, representing an 87 percent increase compared to 2022. This surge is expected to continue, with projections by the International Energy Agency suggesting that demand will grow to between 860 gigawatts and 900 gigawatts by 2035 and 2050, respectively. This growth is largely driven by China's production momentum, which has resulted in reduced prices for solar energy units and increased global demand.
In recent years, China has invested over 50 billion US dollars in developing solar energy technology manufacturing, establishing itself as a dominant player in the market. Currently, China holds more than 80% of the global market share in solar panel manufacturing, housing the world's top 10 solar energy equipment suppliers. This has led to a substantial reduction in the costs of electricity systems reliant on solar panels by 90% between 2010 and 2023, paving the way for emerging markets like Egypt to enter the industry.
The report highlights the importance of Egypt seizing this opportunity. The demand for solar panels is expected to rise, with the European Union projected to remain the largest importer until 2035. The EU's clean technology imports are anticipated to constitute about 35% of its total import bill by 2035, up from less than 10% in 2023.
Localizing solar panel manufacturing in Egypt could support related projects, such as the planned solar power plants for Lake Nasser and Naga' Hammadi, and large existing ones, like the Benban solar plant in Aswan. The report also points to significant export prospects, as seen in China's 40% growth in solar energy exports in 2023. Expanding solar energy production could also reduce reliance on fossil fuels, lowering import bills and supporting energy self-sufficiency.
Key enabling elements for Egypt include its abundance of quartz stones, essential for solar panel production, found in regions like Umm Halig and Marsa Alam. Additionally, Egypt has substantial reserves of rare earth minerals crucial for solar panel manufacturing.
In May 2023, Egypt inaugurated its first quartz production complex in Ain Sokhna, a pioneering facility in the region. The country also started implementing a silicon production complex project in New Alamein City in 2023, aimed at supplying locally-produced silicon instead of imports. The project's third phase will include a polysilicon factory for electronics and solar cells manufacturing.
The center emphasizes the necessity of crafting an investment promotion plan for the solar cell manufacturing sector to support initial high-cost investments. It also suggests studying China's successful experience in the solar panel industry, where strategic policies have allowed China to leverage increasing demand, achieve economies of scale, and significantly reduce costs.