Jinko Solar wins 17.5 MWp Egypt contract

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Chinese solar manufacturer, Jinko Solar, has been awarded a contract to supply PV modules for a 17.5 MWp solar plant in Egypt. The project will be developed in partnership with an Egyptian renewable energy company IRSC for the Misr Beni Suef cement company. Across Africa, many large-scale consumers are adopting solar energy.

• Jinko Solar designs and manufactures a wide range of PV products. The company also provides solar system engineering, procurement, and construction (EPC) services. It supplies its products to distributors, project developers, and system integrators. 

• The Egyptian solar market has been growing steadily. Last year, about 707 MW of capacity was added to the grid, making it second only to South Africa, which installed 1,200 MW.

More details

• Commercial and industrial (C&I) customers account for 53% with the industrial sector taking up roughly 27% and the commercial sector around 26% of total consumption. As heavy energy users, energy costs, including electricity, can account for up to 30% of their operating expenses.

• The Egyptian C&I solar market has grown to reach over 250 MW of installed capacity, with over 157 companies certified to operate in this space. Competition is stiff, and the pricing of panels is an important factor. Jinko Solar, being a global leader in the sector, enjoys economies of scale. Its integrated manufacturing and distribution model enables it to cut supply chain costs by directly reaching the end consumer.

• However, there are plans for local manufacturing that could increase competition. Singapore-based solar PV manufacturer, EliTe Solar, has planned a 5 GW solar plant in Egypt, with production expected to start in September 2025. This facility will include 2 GW solar cells and 3 GW solar module production lines, potentially challenging Jinko Solar's dominance.

• There is market competition either at utility scale level projects or small scale for own consumption from other established Chinese and foreign solar manufacturers. At the utility-scale level, Chinese-based JA Solar, for example, recently signed a 1.25 GW module procurement agreement with the China Energy Engineering Corporation (CEEC) for Africa's largest photovoltaic storage project. Trina Solar has also partnered with AMEA Power to deploy its Elementa 2 platform for the 300 MWh Abydos Solar PV project.

• C&I businesses are increasingly adopting solar energy to reduce their electricity costs.  Several prominent companies in Egypt have already embraced solar power. Coca-Cola Egypt installed a rooftop solar plant at their Sadat City bottling facility, and Orascom Development partnered with SolarizEgypt to build a 1.5 MW solar plant for their Makadi Heights resort community. Even Oriental Weavers, a leading carpet manufacturer, has incorporated solar power at their factories.

• The demand for affordable and sustainable energy is pushing more consumers to adopt solar energy. Those manufacturers who export their products to markets like Europe are especially concerned about the Carbon Border Adjustment Mechanism (CBAM) taking effect in 2026, which might limit their market share unless they adopt renewables.

Our take

• Fossil fuel prices continue to increase as governments remove subsidies, and this will particularly affect commercial and industrial customers who rely on them for backup power. On the other hand, solar prices are declining, and governments are providing subsidies and incentives to support its adoption. Egypt offers customs duties on equipment used for production set at 2% and only charges 5% on imported equipment used for power infrastructure. This makes solar more competitive

• Egypt has ambitions to generate about 42% of its electricity from renewables, increasing from the current level of less than 15%. Achieving this goal will require significant private-sector participation. Commercial and industrial customers, with their financial capacity to finance capital-intensive renewable energy projects, can take a leading role. The private sector can also play a larger role through public-private partnerships or as independent power producers, ensuring Egypt meets its growing renewable energy demand.

• Local manufacturing can work to meet some demand if not all. But this will require partnerships with established manufacturers to source their skills and expertise, and also heavy government funding to ensure they compete favourably with cheap imports. The current demand of over 700 MW annually shows that local manufacturing can achieve economies of scale.