The Executive Chairman of the New and Renewable Energy Authority (NREA), Mohamed El-Sobki opposed the new and renewable energy companies that had claimed that the sector is currently unattractive for investments, according to a report published by Daily News Egypt.

The statement came in response to owners of small and medium new and renewable energy companies in Egypt that have agreed that the industry faces multiple problems that obstruct the companies’ growth and turn the sector into an unattractive pursuit for investments, wrote Daily News Egypt in earlier news.

Chairman of Solar Energy Development Association (SEDA), Khaled Gasser, stated that the ruling legislation in this field is vague and lacks the presence of an independent body that should be responsible for all activities in the sector of renewables.

Head of the Green Energy Solutions Company (GESC), Mohamed Al-Sayed, added that the devaluation of the Egyptian pound, along with the purchase tariff set by the Egyptian government, has reduced the profitability of renewable energy projects in the country.

El-Sobki denied that the currency fluctuations and exchange rates had any effects on the sector. He declared that the government is aware that there is a great difference in the prices, thus will bear the currency conversion risks to ensure that the investors’ profit margins remain stable and unaltered.

Nonetheless, it is believed that the field of new and renewable energy in Egypt has promising potential as Egypt is considered the world’s second country with highest sunshine duration.