Egypt is qualified to be a pioneer country in the southern Mediterranean to have a large scale Egypt solar energy Program. This is attributed to its; high solar energy potential, advanced and large power sector and large as well as diversified economy.
the strategy has positioned Egypt Solar Energy as a future opportunity due to its current high cost. However this strategy has not undermined the importance of this source of Solar Energy. This has been represented in building 20 MW solar energy power plant combined with 120 MW combined cycle power plant in Korimat.
Justifications to Start a Large Scale Egypt Solar Energy Program:
It is important to mention that Egypt solar energy has its merit in Egypt due to its high intensity, which reaches 7.2 kWh/m2 days in some southern sites. Furthermore, the isolation period could reach 3500 hour per year with very few cloudy days. More and above Egypt solar energy is well spread over the country and not concentrated in some areas as well as it is more stable and predictable than wind energy. In addition to these, the cost of Egypt solar energy can be substantially reduced if grid connected solar plants have been adopted. This will reduce the cost by at least 40% due to the omission of the required storage systems, in case if these systems are operated as isolated ones. Furthermore its cost to the system is much lower. This is attributed to its well spread allover the country, even within and close to the inhibited areas, where grids are already available.
Accordingly, these solar plants can benefit from the existing surplus capacities in both transmission and distribution systems.
On the other hand Egypt solar energy can benefit from the current available regional initiatives for renewable energies. These initiatives are the Mediterranean Solar plan, which has been lunched in 2008 by the Union of Mediterranean and Desetek, which has been lunched by the German renewable energy industry. These two initiatives aim at establishing renewable energy plants, with focus on solar, in the southern part of the Mediterranean such that they export their produced electricity to the European countries at the northern part of the Mediterranean. In addition to these initiatives, the latest amendments to the European directives have enabled European countries to build renewable plants in a third country, providing that electricity will be physically exported to Europe. Furthermore several soft funds become available to finance Egypt solar energy plants. These include; planned financial schemes under development by the aforementioned initiatives. Also the World Bank has already developed a fund, which enables soft finance to CSP plants.