Chinese state-owned energy conglomerate China Energy Engineering Corporation (CEEC) is planning to invest up to $1 billion in Egypt’s energy sector over the next five years.
This was revealed during a meeting on Monday between Egyptian Prime Minister Mostafa Madbouly and CEEC Chairman Zhen Ni on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in China.
Zhen Ni says CEEC plans to invest in seawater desalination projects in Egypt since it aligns with its efforts to boost green development and cut carbon emissions.
Beyond water desalination, he said the proposed cooperation will also cover other fields like renewable energy and energy storage, which will make Egypt a hub for the company’s operations in the region.
Egypt aims to produce 10 million cubic meters of desalinated water per day over the next five years, up from its current daily production capacity of 1.4 million cubic meters.
Since 2009 when it began operating in Egypt, the Chinese company has implemented 14 projects.
It has also relocated its regional headquarters to Cairo, proving its strong confidence in the Egyptian market.
Prime Minister Madbouly assured CEEC of his government’s commitment to provide the necessary incentives and facilities to implement the billion-dollar projects.
Moves align with Egypt’s renewable goal
The looming CEEC investment perfectly aligns with Egypt’s broader renewable energy expansion goals and the need to address its gas import dependency.
Formerly Africa’s biggest gas exporter, Egypt now faces a huge supply deficit at home and targets to make renewable energy 42% by the year 2030.
To get there, the government is courting foreign investments in its renewable sector, notably from countries in Asia and the Gulf region.
The Chinese deal comes just weeks after Egypt’s Korra Energi secured a contract to build a $1 million hybrid solar power plant for the Esh El Mallaha Petroleum Company (Eshpetco).
The project, the first of its kind in Egypt’s energy sector, combines the benefits of flare gas recovery with renewable energy generation.
This was also followed by the government’s recent signing of a $220 million partnership agreement with solar investors from the UAE, Bahrain and China.
The Atom Solar project entails the construction of a 200,000-square meter facility in the Suez canal free trade area to develop solar cells, panels and energy storage systems.
The Egyptian cabinet said the facility will achieve an annual capacity of 2GW for solar cells and 2 GW for solar panels, alongside 1 GWh of energy storage solutions. China’s JA Solar will serve as the technical investor.
Prime Minister Madbouly expressed hope that these Chinese-backed projects would help domesticate Egypt’s renewable energy components.
The country’s domestic energy demand is growing fast. It currently ranges between 5-6 GW annually, along with the demand for energy exports to Europe, which is also a priority for the government.
