• Egypt, China firms sign MoU on renewables and grid equipment cooperation

• Deal includes building Egypt’s first inverter manufacturing industrial site

• Partnership supports local manufacturing and renewable power targets by 2030

Egyptian Minister of Electricity and Renewable Energy Mahmoud Essmat attended the signing of a memorandum of understanding between Egyptian company Kemet and Chinese group TBEA in China on Sunday, Jan. 18, 2026.

The agreement covers cooperation on renewable energy, the manufacture of grid-connection equipment, and the construction of Egypt’s first industrial site dedicated to inverter production.

The aim is to support technology transfer, promote local manufacturing, and strengthen Egypt’s national capacity to produce the equipment needed to integrate renewable energy into the grid. It is part of Egypt’s strategy to modernize the electricity grid, improve its stability, and increase its ability to accommodate new solar and wind generation.

The memorandum of understanding also comes as Egypt’s renewable energy industry continues to expand. In November 2025, the General Authority for Investment and Free Zones said local solar panel production was expected to start in early 2026, with local content that could reach 90%. This January, the country inaugurated a 5 GW solar industrial complex in Ain Sokhna to manufacture photovoltaic cells and modules.

Globally, China holds a dominant position in the renewable energy value chain, particularly in solar. According to the International Energy Agency, China accounted for 98% of global solar wafer production, 92% of cell production, and 85% of panel production in 2023.

In this context, the industrial partnership is intended to support Egypt’s ambitions for local manufacturing and the development of its energy infrastructure. Renewables are expected to represent 42% of the electricity mix by 2030.

Abdoullah Diop