Prime Minister Mostafa Madbouly held a meeting to review a proposal for launching an initiative that would enable factories to generate solar energy on their rooftops and use it in production, as a means to expand reliance on renewables, optimize the use of national resources, and reduce the import bill, according to a Cabinet statement.

The meeting was attended by several ministers, including  Karim Badawi, Minister of Petroleum and Mineral Resources.

Khaled Hashem, Minister of Industry, noted that the initiative, dubbed “The Industry’s Sun”, seeks to strengthen energy security for the industrial sector, increase its resilience, against fluctuations in global energy prices, boost the competitiveness of Egyptian exports by lowering their carbon footprint, and consolidate Egypt’s position as a regional hub linking industry, energy, green transition, and clean supply chains.

He explained that to implement the initiative, which targets generating 1,000 megawatt (MW), about 7 million square meters of usable surface area must be provided. He noted that the targeted number of factories is around 7,000, representing nearly 10% of Egypt’s total industrial base. The initiative’s concept is based on an average installed capacity of about 150 kilowatts per factory, with higher capacities expected from factories with higher electricity consumption rates and larger available space.

Meanwhile,  Mahmoud Esmat, Minister of Electricity and Renewable Energy, reviewed the economic and environmental feasibility of using solar energy systems, as well as the expected savings in conventional fuel resulting from the implementation of such an initiative to expand the use of new and renewable energy sources in factories.

Discussing ways to fund the initiative, Finance Minister Ahmed Kouchouk said the government has clear figures in place and will work with financing entities to launch it soon. He noted that all stakeholders-government, manufacturers, and others-stand to benefit from the program

During the meeting, Mohamed Farid, Minister of Investment and Foreign Trade, presented several proposals that are planned to be incorporated into the initiative, in a way that contributes to increasing the number of financing entities. He stressed the necessity of including factories located in free zones and investment areas within the scope of the initiative’s implementation.

At the conclusion of the meeting, Madbouly instructed that the final vision of the initiative be completed swiftly, in preparation for presenting it to the Cabinet for approval, and then launching it.

In April, Madbouly urged the government to launch an initiative to incentivize factories and households to transition to solar energy, stressing that this is a top government priority.