Egypt took major step toward localizing renewable energy manufacturing after signing a technology transfer agreement with China’s GCL Group, one of the world’s leading solar manufacturers, to establish a large-scale industrial complex for the production of solar cells and photovoltaic (PV) modules.
The agreement was signed during an official visit to China by Mahmoud Esmat, Egypt’s Minister of Electricity and Renewable Energy, as part of broader efforts to expand domestic production, localize advanced technology, and accelerate the country’s energy transition.
Under the deal, Kemet Company of Egypt and Suzhou Witsen (Witsheng), a subsidiary of GCL Group, will jointly develop an integrated industrial complex with an annual production capacity of 5 gigawatts, covering an area of 280,000 square meters and requiring total investments of $500 million.
During meetings with senior executives of GCL Group, chaired by Zhu Gongshan, Esmat reviewed the size and growth potential of Egypt’s energy market and outlined the government’s strategy to increase reliance on renewable energy within the national power mix.
Discussions focused on supporting domestic industry, localizing technology, expanding the manufacture of electrical equipment, and replacing imported components with locally produced alternatives, a core objective of Egypt’s industrial and energy policies.
The talks also addressed mechanisms for long-term cooperation in manufacturing solar-related electrical equipment and transferring advanced Chinese technology, particularly in the production of solar cells and PV modules, to Egypt.
The agreement includes commitments to transfer manufacturing know-how and technical expertise, increase local value-added content in production inputs, build domestic technical capabilities, support technological innovation and research.
The agreement was signed on behalf of Kemet by Eng. Ahmed El-Abd, Chairman of the company, and on behalf of Suzhou Witsen by Qiu Shuliang, Chairman of the Chinese firm.
Following the signing ceremony, Esmat conducted a field tour of GCL’s photovoltaic cell manufacturing facilities in Jiangsu Province, inspecting production lines and all stages of the manufacturing process. The Chinese facilities will serve as a technical and operational reference for the industrial complex planned in Egypt.
The minister discussed preliminary design concepts, implementation mechanisms, and applied technologies, while receiving detailed briefings on GCL’s proprietary innovations. The tour also included visits to component assembly areas, research laboratories, and testing centers.
Esmat was accompanied by Eng. Adel El-Hariri, Board Member for Studies and Planning at the Egyptian Electricity Transmission Company, alongside representatives from Kemet and GCL Group.
The minister said the agreement represents a cornerstone step in positioning Egypt as a regional hub for renewable energy equipment manufacturing, supporting sustainable development goals and the national plan to localize advanced industries.
He emphasized that the Ministry of Electricity and Renewable Energy provides full support for partnerships based on mutual benefit, noting that the private sector leads implementation of renewable energy projects under Egypt’s national energy strategy.
The minister reaffirmed that Egypt has worked to create a favorable investment climate, attract local and foreign capital, and open the energy sector to private participation, particularly in renewable energy projects.
Egypt aims to raise the share of renewable energy in its electricity mix to more than 42% by 2030 and 65% by 2040, leveraging its natural resources to reduce reliance on fossil fuels and strengthen long-term energy security.
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