Discover more about these trends in our 2019 Renewable Energy Industry Outlook. All three big credit rating agencies have issued upgrades between 2018-2019. “Job creation, economic development and the growth of local manufacturing capabilities are at the heart of our renewables programme, and with the support of IRENA we can pursue our plans to grow the country’s installed capacity base through smart policies, and the latest renewable technologies.”   Egypt can draw on an abundance of renewable energy resources to achieve higher shares of hydropower, wind, solar and biomass. “Attracting these investments requires stable policy frameworks and a streamlined regulatory environment that provides clarity and certainty for investors. The July 2013 coup which brought Sisi to power was supported by mass demonstrations. World Energy Outlook 2019 - Analysis and key findings. While this performance has won the confidence of multilateral financial institutions and foreign investors, the immediate effect has been a fall in living standards. Neither of these kinds of challenge would necessarily alter the system of governance. “Remarkable cost reductions in renewable energy in recent years are encouraging governments all over the world to rethink energy strategies so as to better reflect the new economics of renewables,” said Mr. Adnan Z. Amin, IRENA Director-General. The social compact on which Sisi's rule depends is thus identical to that which sustained Mubarak, Anwar Sadat and Gamal Abdel Nasser before him - that is the exchange of democratic freedoms for security and economic well-being. He may also find himself confronting the kind of leaderless social media-inspired protest that have destabilised Algeria, Sudan, Hong Kong and even some Western democracies. Further, by 2023, the market value is expected to grow at a CAGR of XX percent to USD XX billion. The Benban solar complex with its impressive scale reflects this new momentum.”   “Building on these achievements, Egypt has the opportunity to further raise its ambition which entails substantially increased investments,” continued Mr. Amin. 12.1 Overview 12.2 Demand projections “This analysis offers the Egyptian energy sector a roadmap, building on current ambitions and plans, to enhance our position as an energy hub connecting Europe, Asia and Africa,” said H.E. For now, any threat to the current political settlement is unlikely to come from a resurgence of the popular Islamic movement.

IRENA’s new ‘Egypt Renewable Energy Outlook’ report shows renewables could present cost savings of USD 900 million annually.

Egypt The government of Egypt launched a feed-in tariff support system in 2014 for solar PV and wind projects to boost renewable energy production. It is true that his two presidential election victories in 2014 and 2018 were both formalities as no serious opposition was permitted but even so, there is believed to be a substantial minority of the population whose preference is for competent authoritarianism over what they view as incompetent and potentially radical popular Islam. According to its own parameters, the November 2016 to November 2019 International Monetary Fund (IMF) Extended Fund Facility (EFF) has succeeded.

However, a number of underlying tensions and challenges mean that long-term investments in the country are far from being risk-free.

Total installed capacity of renewables in the country today amounts to 3.7 gigawatts (GW). It is certainly the case that after taking control in July 2013, the military swiftly resolved the most debilitating aspects of the power supply crisis. The collapse of the Mubarak regime and the brief rise and fall of the Brotherhood's Mohamed Morsi took place against a backdrop of a severe energy crisis. The government also eased up on some price rises and austerity measures to ease growing discontent. While a great deal more structural reform is needed, at the end of 2018 foreign reserves were 19% of GDP. The Egyptian power sector is viewed as an attractive destination for investment due to a relatively stable government, economy and policy direction. Achieving the higher targets would, however, require investment in renewables to grow from USD 2.5 billion per year based on today’s policies to USD 6.5 billion per year.

A campaign of mass arrests quickly shut down the street demonstrations which flared up in September 2019 following the dissemination on social media of allegations that members of President Sisi's close circle had enriched themselves via a lavish programme of presidential palace building. 5.7 Financial health of the electricity supply industry The political imperative to avoid blackouts and to ensure the consistent availability of electric power at peak times has been a defining feature of the Sisi presidency. The future could be different. This is the driver behind the re-emergence of popular protest. Egypt announced in 2014 ambitious plans to develop renewable energy, originally targeting 4.3 gigawatts of wind and solar projects to be installed over three years.