Africa is a different market.
After one week in Cairo I collected my first data out of a lot of interviews with CEO´s of well known companies and institutions which are active in the area of renewable energies in Egypt.
That the natural resources like wind or sun exists in this region better than in every Europe country seems logical, but a big difference are the existing subsidies on fossil energies here in Egypt which deflates the growth of the renewable energy market. (80% of the produced electricity is out of fossil fuels)
For example: the actual fuel costs for one liter Diesel (converted to Euros) are approximately by 0,145€ and for Normal fuel by 0,24€. But thatisn´t a cheap undertaking for the Egyptian government.
Sherif Bahnas, an Egyptian Photovoltaic producer told me: “Only the subsidy for diesel fuel corresponds to the income of the Suez channel. (about 6,2Mrd. € per Year)!”
Cause of this expensive subsidies the government have payment difficulties to the fuel suppliers. Further long traffic jams at the gas stations are part of everyday´s life.
These troubles give reasons for an increasing renewable energy sector and of course there are a lot of interesting movements.
While private investors prepare plans for alternative technical capabilities to avoid blackouts (for example in hotels) the government signed renewable Energy targets which should be reached till 2020.
This trend throws an interesting light on my Bachelorthesis “Economic feasibility of renewable energy in Egypt”.