The Egyptian government has long realized the importance of diversifying the energy mix to reduce carbon emissions. To this end, Egypt has set an ambitious plan to increase the contribution of renewable energy, led by solar power, to 42% of the energy mix by 2035. According to this progressive plan, electricity generated from renewables in the energy mix will increase by 33% by 2025, 48% by 2030, 55% by 2035, and finally 61% by 2040. The private sector has a major role to play in making these ambitious targets a reality.

Egypt, with its abundance of sun and wind, is an ideal location for mega renewable energy projects. The ranking of Egypt among the top players regionally and globally in the renewable energy field underlines this outlook. The country ranks first in electricity generation from solar and wind sources on the Middle East level. Globally, upon the completion of the 2000MW Benban solar power plant in partnership with the private sector, Egypt ranks fourth in terms of the largest solar power plants, following India, which ranks first and third, and China assuming second place. The Benban project is praised as “the solar energy capital of the world” and a model to be replicated. At Schneider Electric, we are proud to have contributed to this world-class mega project.    

Economic Benefits of Renewable Energy:

Expanding the use of new and renewable energy sources brings several positive economic benefits, the most prominent of which are:

1. Cost savings at home: Homeowners and residents can leverage the abundance of sun and install solar panels on their roofs to produce their own energy, resulting in reduced bills and long-term savings. Reports issued by the International Renewable Energy Agency in 2023 showed that solar energy in Egypt can be produced at a much lower cost, starting from $0.02/KW, compared to fossil fuel-generated electricity at $0.06/KW.
2. Source of Independent Energy: Solar energy ensures the availability of a source of electricity that is not affected by any circumstances or natural disasters, thus providing a reliable source of energy and reducing the negative impact of global warming and environmental disasters such as hurricanes, floods, and fires.
3. Job Creation: The expansion of solar projects creates job opportunities which will support local families and help boost the overall national economy.
4. Decarbonization: Expansion in renewable energy sources, and solar energy in specific, can significantly reduce carbon emissions from businesses and households. By leveraging innovative technologies and solutions, businesses and individuals can achieve ambitious sustainability targets and reach energy independence.  

What Schneider Electric Can Offer:

The renewable energy sector is bound for immense growth and transformation; this is where Schneider Electric can pitch in. As a global leader in the digital transformation of energy management, automation, and sustainability, we offer innovative and diverse solar solutions that can be applied in various settings, from homes to small electrical networks known as microgrids.

A microgrid is a sophisticated system that enables the seamless integration of renewable energy sources, like solar power, and a key component of the evolving prosumer business model. Microgrids offer countless benefits for individuals, businesses, the country and the environment. Through our cutting-edge microgrid solutions, individuals and businesses can generate clean and renewable electricity, consume and sell it while making buildings self-sufficient, less dependent on traditional energy sources, more cost-effective, and eco-friendly. Providing a two-way flow of energy, excess electricity can, through microgrids, be injected into the national grid creating new revenue streams for prosumers and improving the overall stability and reliability of the grid.     

Leading by example, Schneider Electric has demonstrated its commitment to sustainability by renovating its head office in Cairo into a sustainable building. The outcome we have achieved has been outstanding; we managed to reduce energy bills and carbon emissions by 50%.   

Additionally, Schneider Electric's microgrid-enabled EV charging stations facilitate the integration of electric vehicles (EVs) into the energy ecosystem. The state-of-the-art V2G technology allows EVs to not only draw power from the grid but also serve as mobile energy storage units, injecting surplus electricity back into the microgrid or national grid when needed.

Virtual power plants are yet another significant aspect of Schneider Electric's microgrid solutions. These virtual power plants leverage advanced software and control systems to aggregate and manage distributed energy resources on a large scale and enable grid operators to balance electricity supply and demand in real time, improving overall grid resilience and reliability.

The Way Forward:

To achieve a more sustainable future and reduce reliance on non-renewable fuel sources, expanding the use of renewables is imperative. We, at Schneider Electric, are committed to contributing to this transition and are ready to join forces with individuals, the government, and the private sector, to promote the adoption of solar energy. With Egypt's favorable conditions, including advanced technology, innovative ideas, and abundant sunlight, the country is well-positioned to maximize the benefits of solar energy and accelerate efforts to combat climate change. Schneider Electric is dedicated to providing the necessary tools and expertise to shape a sustainable and digitized future.