Investor interest in Egypt's renewables sector has risen notably over the last six months and theproject pipeline has strengthened accordingly. Our forecasts remain conservative, however, given thecountry's unattractive economic and political risk profile and the ongoing uncertainty in Egypt's renewablesregulatory regime. We expect total non-hydro renewables generation to reach just over 5.05TWh in 2021,more than double the 2.5TWh generated in 2016.
Latest Updates And Structural Trends
In August 2017, the Egyptian Electricity Transmission Company signed a contract with ACWAPower to develop, finance, build, own and operate three solar photovoltaic (PV) projects with a totalcapacity of 165.5MW in the Benban area of Aswan. The USD190mn projects are part of the secondround of Egypt's feed-in-tariff programme. The three projects, with individual capacities of 67.5MW,70MW and 28MW, are expected to provide electricity for 80,000 homes, while offsetting about 156,000tonnes of carbon dioxide a year. Financial closure is likely to be reached by the end of 2017, withconstruction due to start around the same time. The projects are slated to begin operations in 2018.