Giant Solar Park in the Desert Jump Starts Egypt's Renewables Push

Electric sun cells face the sun at a solar power of the Benban plant in Aswan, Egypt, November 17, 2019. Picture taken November 17, 2019. (Reuters)
Electric sun cells face the sun at a solar power of the Benban plant in Aswan, Egypt, November 17, 2019. Picture taken November 17, 2019. (Reuters)
TT

Giant Solar Park in the Desert Jump Starts Egypt's Renewables Push

Electric sun cells face the sun at a solar power of the Benban plant in Aswan, Egypt, November 17, 2019. Picture taken November 17, 2019. (Reuters)
Electric sun cells face the sun at a solar power of the Benban plant in Aswan, Egypt, November 17, 2019. Picture taken November 17, 2019. (Reuters)

Near the southern Egyptian city of Aswan, a swathe of photovoltaic solar panels spreads over an area of desert so large it is clearly visible from space.

They are part of the Benban plant, one of the world’s largest solar parks following completion last month of a second phase of the estimated $2.1 billion development project.

Designed to anchor a renewable energy sector by attracting foreign and domestic private-sector developers and financial backers, the plant now provides nearly 1.5 GW to Egypt’s national grid and has brought down the price of solar energy at a time when the government is phasing out electricity subsidies.

In 2013, Egypt was suffering rolling blackouts due to power shortages at aging power stations. Three gigantic gas-powered stations with a capacity of 14.4 GW procured from Siemens in 2015 turned the deficit into a surplus.

National installed electricity capacity is now around 50 GW and Egypt aims to increase the share of electricity provided by renewables from a fraction currently to 20% by 2022 and 42% by 2035.

“They have plans to bring out renewable energy, private sector invested, across the Red Sea in wind and throughout the deserts for solar power,” said Christopher Cantelmi of the International Finance Corporation (IFC), a lead backer of Benban along with the European Bank for Reconstruction and Development.

The Benban project’s 32 plots were developed by more than 30 companies from 12 countries, including Spain’s Acciona, UAE-based Alcazar Energy, Italy’s Enerray, France’s Total Enren and EDF, China’s Chint Solar and Norway’s Scatec. Developers of the plant, around 40 km (25 miles) northwest of Aswan, are guaranteed a feed-in tariff price for 25 years.

“It really introduced a lot of them to Egypt for the very first time, to project finance and to infrastructure finance,” said Cantelmi.

A third phase at Benban could add more than 300 MW, though nothing has been decided yet, while another large-scale solar development is planned 45 km north of Aswan at Kom Ombo.

Egypt has struggled to attract foreign investment outside the oil and gas sector, despite winning praise for an IMF-backed economic reform program since 2016.

At Benban, developers visited by an IFC team last month raised the issue of a stand-off over a government demand that they collectively pay an extra 1.9 billion Egyptian pounds ($118 million) in infrastructure costs. There had also been some curtailment of supplies to the grid as they waited for new transmission lines to be added.

But operations were generally going well, and the Egyptian Electricity Transmission Company was paying on time, they said.

Brushing machines

Solar irradiation is exceptionally good at Benban and running costs are low, developers say. Upkeep is largely limited to brushing the desert dust from the panels to maximize absorption.

“You don’t need a lot of manpower round here, you only need cleaning machines ... and maintenance, which is not a big amount of people,” said Mohamed Ossama, project head for Egypt’s Taqa Arabia, which has a 50 MW plot.

Benban has brought down the price of solar energy, drawn in dozens of companies, and given Egypt’s south an economic boost, said Mohamed Orabi, professor of power electronics at Aswan University.

However, the plant needed a storage system - still a key technological challenge for solar power that surges during the daytime - in order to stabilize supplies to the grid, he said.

Last year a report from the International Renewable Energy Agency (IRENA) suggested Egypt could be more ambitious in its green energy goals and aim to supply 53% of its electricity from renewables by 2030.

But it said developers could be discouraged by complex administrative procedures, and urged Egypt to review its market framework and develop local manufacturing capacity for renewables.

“The (Benban) project showcases Egypt’s seriousness in doing renewable energy business, especially when most countries in the region have been stalling on this front, with the exception of Jordan and Morocco,” said Jessica Obeid, an energy expert at Chatham House.

“In the next stages, political and policy stability are important, reduction of the complex bureaucratic measures and clear assignments of institutions’ mandates and facilitation of the process will be much needed.”



Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
TT

Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)

Oil prices fell at Monday's open after US President Donald Trump said he was highly unlikely to order new Iran attacks while talks to end the conflict make progress, despite both nations' reports of attacks on ships in or near the Strait of Hormuz.

Brent was down 84 cents, or 0.85%, to $97.48 a barrel by 0138 GMT, while West Texas Intermediate fell 32 cents, or 0.35%, to $90.51 a barrel.

The fall reversed minor gains made on Friday’s settlement as the market assessed the possibility of further US ‌strikes on Iran, ‌although Brent fell 17% last week, the ‌steepest ⁠weekly drop since the ⁠start of the COVID pandemic and the biggest in absolute terms, according to LSEG data dating back to 1988.

"It depends on whether or not they sign a very strong agreement," Trump told CNN in a phone interview. "The answer is, highly unlikely it's going to be necessary."

Trump had hinted at renewing attacks on Iran after ⁠last week's US midterm elections, but there has ‌been no sign of a large-scale ‌US military operation. Iran has said it would respond by striking US and ‌Israeli targets.

Tim Waterer, chief analyst at KCM Trade, called ‌Trump's comments "more measured" but said "the market is still waiting to see whether the midterms have produced a lasting shift in Trump’s approach to the conflict, or whether this is just another temporary change in tone."

Oil is headed ‌for a glut again as recovering Middle Eastern oil flows, rising production from other countries and ⁠weak demand have ⁠pushed global supply above consumption, JPMorgan said in a report on Friday, estimating a surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October.

On Sunday, Iraq reached an understanding with the US to allow Iraqi oil exports through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein said in an interview with Al Jazeera.

He said Iraq's losses from the Iran war and disruptions to oil exports had reached $60 billion.


Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)
TT

Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)

The Gulf Cooperation Council (GCC) member states took a new step toward completing the railway interconnection project by signing the project's general agreement in Bahrain on Sunday. This comes as part of efforts to establish an integrated transport network linking the six nations and boosting the movement of passengers, goods, and commercial trade among them.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa told Asharq Al-Awsat that each country will fund and execute the portion of the project located within its territory.

Meanwhile, the costs, fees, and expenses associated with the shared interconnection components among member states will be determined collectively, he added.

He explained that the agreement establishes a joint framework for the project's execution and operation, while defining the obligations of member states and their coordination mechanisms.

He noted that the network, which extends some 2,117 kilometers, aims to transport 6 million passengers and 200 million tons of freight by 2030, with the figures projected to rise to more than 8 million passengers and 271 million tons of freight by 2045.

The project spans from Kuwait, passing through Saudi Arabia, Bahrain, Qatar, and the UAE, all the way to Oman, with the goal of achieving full network operations by December 2030.

According to the minister, interconnection lines between adjacent countries can become operational as soon as their components are completed, without the need to wait for the entire Gulf network to be finalized.

National financing and potential partnerships

On private sector participation, Al Khalifa said that it remains one of the viable options for financing, executing, or operating certain components of the project, depending on the outcomes of economic and financial studies. He stressed that there is no unified public-private partnership model approved across the entire network.

There are currently no pre-existing agreements with specific international partners to finance or execute the project, he said. However, the expertise of global companies in the fields of design, engineering, technology, and operating systems could be utilized based on the project's needs and its various phases.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa.

Concerning the project's announced completion rate, the minister explained that the 50 percent figure represents the average progress achieved across member states, and does not mean that half of the construction work for the entire Gulf network has been completed.

The project's cost estimates are currently undergoing review and updates in light of economic shifts, rising prices for materials and services, construction costs, and inflation, he revealed without specifying an updated total cost at the present time.

Returns beyond passenger and freight transport

Al Khalifa said that the economic impact of the project is not limited to facilitating passenger movement and freight transport, but extends to improving supply chain efficiency, boosting trade among GCC countries, and linking industrial centers, economic zones, and logistical hubs, as well as supporting employment and investment opportunities.

He added that determining the project's exact contribution to the gross domestic product (GDP) or estimating expected savings in time and costs remains premature, given that returns vary depending on transport routes, the nature of the cargo, and the points of origin and destination.

In light of the challenges facing maritime navigation in the region, the minister stressed that the Gulf railway network is not intended to serve as a substitute for maritime transport. Instead, it acts as a complementary route that boosts transport options and connectivity among GCC nations, increasing the resilience of supply chains against disruptions that could affect various modes of transportation.

He noted that integration between ports, roads, railways, and airports will strengthen the flexibility of the Gulf transport system, while connecting to broader international logistical corridors remains a future possibility contingent on completing studies, understandings, and coordination with the relevant countries and entities.

King Hamad Bridge to link Bahrain and Saudi Arabia

Regarding the connection between Bahrain and Saudi Arabia, Al Khalifa explained that the King Hamad Bridge project includes road lanes and railway lines, enabling the international passenger station in Bahrain to connect with the Saudi railway network and forming one of the essential components for completing the Gulf interconnection.

He added that work is underway on the privatization procedures for the King Fahd Causeway Authority, alongside completing the necessary studies and procedures to transition to the execution of the new bridge project.

Achieving the connection between Bahrain and Saudi Arabia is a fundamental requirement for operating the railway line between the two countries within the project's targeted timeframe in December 2030,e he said.


Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
TT

Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)

Egypt aims to accelerate energy projects with Libya, including gas pipeline links, refining of Libyan crude in Egypt and an electricity interconnection, Egyptian Foreign Minister Badr Abdelatty said late on Saturday.

Abdelatty's comments were in ‌a ministry ‌statement after a meeting ‌with ⁠Libya’s acting oil ⁠and gas minister Khalifa Abdulsadek in Tripoli.

Abdelatty also ‌called for cooperation on petroleum products and the completion of projects to refine Libyan ‌oil in Egypt and re-export it, the statement said, ⁠adding ⁠that Abdulsadek had said that Libya would continue implementing existing projects and would visit Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

The statement did not provide details on costs or the status of the projects.