Egypt supports several factors to growth of the country’s renewable energy sector, enabling Egypt to offer one of the most attractive competitive advantages in the region.

The Electricity and renewable energy sector have numerous Comparative and Competitive Advantages, the most significant of which are as follows:

• Egypt enjoys favorable wind and solar conditions, making it a prime destination for investments in renewable energy projects, particularly in wind and solar power.
• Egypt’s location and proximity to European and Gulf markets, combined with its logistical and regulatory infrastructure and multiple electricity interconnection agreements, position it as a regional hub for green energy.
• The Wind Atlas of Egypt, issued in 2005, identifies several promising areas for wind energy investments, including the Gulf of Suez (average wind speed of 10.5 m/s at 50 m altitude), West and East of the Nile (average wind speed of 7.5 m/s at 80 m altitude), and specific regions in the Sinai Peninsula.
• The Solar Atlas of Egypt, published in 2018, recorded 15 years of solar radiation data, indicated a daily average solar brightness ranging from 9.3 to 10.8 hours per day.

The Egyptian government has adopted a new strategy to support the electricity sector during (2024-2027), and reaffirmed its commitment to achieving sustainability by providing energy from renewable resources. Additionally, it emphasized on localizing the manufacturing of the inputs of electricity and renewable energy projects, while resuming offering investment incentives to projects operating in this sector:

• Egypt’s Renewable Energy Strategy aims to produce 42% of its electricity from renewable resources by 2035, as follows: 55% generated from thermal power plants, 42% renewable energy, and 3% nuclear energy.
• The government has prioritized the renewable energy sector by promoting the local manufacturing of solar and wind power plants components through public-private partnerships.

• Special Incentives : 

Pursuant to Investment Law No. 72 of 2017, certain activities in the electricity and renewable energy sector are eligible for the special investment incentives provided therein. These incentives take the form of a deduction from net taxable profits equivalent to 50% of the investment costs for Sector A or 30% for Sector B, depending on the geographical location of the investment. In accordance with Decrees No. 104 and 981 of 2022, the activities eligible for these incentives under Sectors A and B are as follows:

• Activities Eligible for Special Incentives within Sector (A):

-  Solar cells and stations components (inverter and fiber-optic capillaries).
-  Inputs of green hydrogen production projects and green fuel derivatives.
-  Electrolyser for green hydrogen production.
-  Components and equipment for wind power plants.
-  Production, storage, and export of green hydrogen.
-  Production, storage, and export of green ammonia.

• Activities Eligible for Special Incentives Sector (B):

-  Solar cells and stations components (inverter and fiber-optic capillaries).
-  All kinds of batteries (hydrogen, thermal and lithium)
-  Production, storage, and export of green hydrogen.
-  Production, storage, and export of green ammonia.