Egypt’s Cabinet Information and Decision Support Center (IDSC) has released a new report outlining major future opportunities for localizing the solar panel manufacturing industry, as global demand for clean energy continues to accelerate.
The report reveals that the global photovoltaic (PV) solar energy market reached 447 gigawatts in 2023—an 87% increase compared to 2022. According to projections by the International Energy Agency, global demand is expected to rise to 860 gigawatts by 2035 and 900 gigawatts by 2050, largely driven by China’s mass production, which has significantly reduced costs and increased accessibility.
In recent years, the manufacturing base for solar technologies has shifted from Europe, Japan, and the United States to China. The report highlights China’s strategic investments of over \$50 billion in solar technology manufacturing, enabling it to dominate more than 80% of the global solar supply chain. This shift has brought down the cost of solar electricity systems by 90% between 2010 and 2023, creating an opening for emerging markets like Egypt to join the global value chain.
Egypt, the report suggests, stands to benefit significantly from entering this industry. The growing global and regional demand—especially in the European Union, which is expected to remain the largest importer of solar panels through 2035—presents a promising export opportunity. Additionally, local manufacturing would support Egypt’s own ambitious solar energy projects, including upcoming plants in Lake Nasser and Nag Hammadi, and established facilities such as the Benban Solar Park in Aswan.
The report also stresses the strategic importance of reducing reliance on imported fossil fuels by investing in renewable energy. Producing solar panels domestically could lower import bills and improve energy self-sufficiency.
Egypt possesses several natural and industrial advantages to support this transition. The country has an abundance of quartz—an essential raw material for solar panels—found in multiple regions, including the Eastern Desert and Marsa Alam. It also has significant reserves of rare earth elements, which are vital for producing advanced solar technologies.
In 2023, Egypt inaugurated a quartz production complex in Ain Sokhna, marking the first of its kind in the country and across the Arab and African regions. That same year, construction began on a new silicon production complex in New Alamein, aimed at manufacturing local silicon products, including polysilicon, a key component in solar cells and electronics.
To further support localization efforts, Egypt has established the National Council for the Localization of Electronic Chip and Solar Cell Technology. The council is tasked with developing national strategies, overseeing implementation, addressing challenges, and proposing solutions to drive the industry forward.
The report concludes by emphasizing the importance of establishing integrated industrial and educational zones dedicated to solar panel production, especially in New Alamein where related infrastructure already exists. It also recommends launching investment promotion campaigns to support high-capital manufacturing projects and drawing lessons from China’s success in scaling up solar production.
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