Lack of components puts solar projects in Egypt at risk

Solar park in Egypt's Aswan province. Photo by: EBRD (www.ebrd.com).

August 29 (Renewables Now) - The acute shortage of solar equipment components in Egypt is putting the realisation of solar projects across the country in jeopardy, the Solar Energy Development Association (SEDA) said on Sunday.

Concerns among investors in the sector about missing components such as solar cells, transformers, solar heaters, and cables are growing as a result of the changes made to import regulations that made the opening of documentary credits difficult, the association warned.

SEDA, which is advocating the development of the solar energy market in Egypt, insists that measures should be taken to complete the projects that have been assigned to companies or those that will be delivered before the COP27 Summit in Egypt in November.

Speaking to Al-Arabiya, Hatem Tawfik, managing director at SEDA member Cairo Solar, said that the solar energy projects currently under development are in the range of 30 MW and 40 MW.

Tawfik said the legislation necessary for market regulation is available, referring to the abolished increase in the customs on solar panels from 2% to 5%.

According to him, the main problem for investors in the solar sector is the difficulty related to the opening of documentary credits to ensure imports.

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Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.

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