- Published: 27 October 2016 27 October 2016
The Memorandum of Understanding (MOU) signed between Egyptian President Abdel Fattah el-Sisi and Siemens in January 2015 for 2GW of wind power capacity signalled the Egyptian government’s renewed commitment to supporting its renewable energy program and attracting foreign investors.
However, except for the publication of the second round of the FIT scheme in early September 2016, firm action to clarify its strategy and further wind power market development has been limited. In the absence of firm commitments and direction from the government, doubt over the government’s willingness and capability to foster realisation of Egypt’s ambitious 7.2GW target by 2020 has increased. Egypt has installed only 755MW of wind power despite a 7.2GW wind power target by 2020. More than 10GW of projects are in the pipeline, but less than 500MW is in a late development phase due to market uncertainty. The Siemens/Gamesa merger, as well as GE’s acquisition of LM, could reshape the competitive landscape in MEA as the market matures according to a Flash note from MAKE.