An energy consultation held on June 29 had 25 Egyptians from various sectors voicing their demands regarding the World Bank’s new energy strategy focusing on renewable energy projects. Those present made it clear that a main priority was the depletion of fossil fuels, saying that it was imperative that the World Bank help increase renewable energy projects by offering technical assistance to the Egyptian government.
The World Bank is attempting to strike a fair balance between middle income countries (MICs) and low income countries (LICs) with Egypt being classified as a MIC. One participant said, “[Egyptians] suffer from being categorized as an MIC, and it is worrying that the World Bank would have a separate energy strategy for MICs and LICs [when most of the country] is poor.” The Bank said that MICs and LICs were based upon classifications aimed at separating the International Bank for Reconstruction and Development lending from International Development Association lending.
However, while participants at the consultation conclude that Egypt should be considered a LIC, the North African country fares far better than its African neighbors. Currently 95% of Egypt’s population has access to electricity serving more than 12 million customers with reliable generation, transmission, and distribution systems according to USAID. Other countries in sub-Saharan Africa cannot compare such as Nigeria where less than 40% of its population has access to electricity.
Other attendees at the meeting noted that the World Bank should recognize Egypt’s solar potential and fund more CSP and PV projects. However, how can the lending institution finance projects in the region when proper regulations and guidelines have yet to be put in place by the government? Annual solar concentration for Egypt averages around 2,300 kWh per square meter – 130% higher than Germany. Yet, per capital use of solar technologies is less than 10% of Germany’s. And while the North African country has instituted a national strategy to utilize 20% of renewable energy by 2020, solar energy remains at less than 2% with some industry specialists even estimating less than 0.1% usage.
However, without proper regulation and guidelines set forth by the Egyptian government, solar projects in Egypt will have a long way to go before making a dent in the country’s energy generation. Furthermore, without the government support with a clear framework, projects might have an even harder time accruing the investment from institutions like the World Bank making them unable to meet the necessary criteria.
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