Arab Finance: As the global energy landscape undergoes a historic shift, Egypt finds itself at a critical juncture. According to the IEA Global Energy Review 2026, solar photovoltaic (PV) has officially emerged as the largest single contributor to global energy demand growth, surpassing fossil fuels for the first time in history. Against this backdrop, Egypt is aggressively pursuing its own green revolution, with government targets envisioning the addition of approximately 2,500 megawatts (MW) of renewable energy to the unified national grid during 2026.

At the heart of this transformation is Ghada Darwish, a seasoned leader who wears two influential hats: Country Director for the British firm Globeleq and the Chair of the Egyptian Renewable Energy Association (EREA).

In this exclusive interview with Arab Finance, Darwish provides her views on the future of Egypt’s power landscape. From the legacy of Benban to the looming challenges of grid digitalization and the implementation of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), she outlines why the "next phase" for Egypt is not just about building more projects—it is about building a sophisticated, data-driven market.

1-As the Country Director of a leading global solar energy firm, how would you evaluate the evolution of Egypt's solar sector in recent years?

Egypt’s solar energy sector has witnessed remarkable development over the past few years, both in terms of installed capacity and the sophistication of the regulatory framework. The Benban Solar Park served as a pivotal turning point for the country's renewable energy landscape, effectively positioning Egypt on the global investment map for renewables.

 However, the priority now is transitioning from a focus solely on mega-projects to a more diversified ecosystem. This shift includes decentralized production, industrial applications, and the strategic integration of renewable energy into the manufacturing sector.

2-Following the update to Egypt’s renewable energy strategy, aiming for 42% of the energy mix by 2030 instead of 2035, how feasible do you consider this revised timeline?

I view this target as ambitious yet attainable; however, it will not be realized automatically. It necessitates an acceleration of structural reforms within the electricity market, particularly concerning grid capacity, the provision of more flexible contracting mechanisms, and the integration of energy storage solutions. Without these core elements, the primary challenge may shift from project execution to the grid's ability to absorb the generated power.

3-What role does Globeleq play in supporting the transition toward clean energy?

Globeleq operates as a long-term investor and developer, with a primary focus on high-quality, bankable projects. Our role extends beyond project development; we actively contribute to market evolution by collaborating with regulators and international institutions to foster a stable and attractive investment environment.

4-What is your assessment of the incentive initiative announced by Prime Minister Mostafa Madbouly to encourage factories and households to switch to solar energy? Will it reduce the fuel import bill?

Certainly, this initiative will contribute to that goal, particularly if implemented on a large scale. Every megawatt of solar energy generated helps reduce reliance on imported fossil fuels. However, the true impact will be realized when these initiatives are coupled with pricing reforms and consumption efficiency measures. While estimating the total savings depends on the scale of adoption, I believe the initiative has the potential to be highly effective over the medium term.

5-How will the Ministry of Electricity address the technical challenges of integrating thousands of small-scale residential stations into the grid? Is the current infrastructure equipped to handle this decentralized production?

The primary challenge lies not in the technology itself, but in grid management. The existing grid requires upgrades in control systems and digitalization, alongside a vital need for investment in smart grids. Decentralized production demands a fundamentally different operating model—one that is more flexible and inherently data-driven.

6-Do you believe current government incentives are sufficient to attract new foreign investment, or do we require a more flexible legislative framework to keep pace with technological advancements, such as battery energy storage?

Progress has certainly been made in attracting new foreign investment; however, there remains a pressing need for a more flexible framework, particularly regarding energy storage and contracting models. Today's investors are seeking long-term clarity and vision, rather than just short-term incentives.

7-Renewable energy has become a key differentiator for investors. How will this affect the competitiveness of Egyptian exports in global markets that impose so-called "carbon taxes," such as the EU's CBAM?

Renewable energy has become a decisive factor in export competitiveness, particularly with the implementation of mechanisms like the EU's CBAM. This mechanism is a regulatory tool introduced by the European Union to place a fair price on the carbon emitted during the production of carbon-intensive goods imported into the EU.

Having entered its final phase on January 1st, 2026, the CBAM aims to prevent carbon leakage, where production shifts to countries with less stringent environmental regulations, while encouraging cleaner industrial practices globally. Naturally, companies that rely on clean energy will be better positioned in terms of both cost-efficiency and market access.

8-Do you believe that the activation of the African carbon market will further stimulate investment in Egypt?

The carbon market represents a significant opportunity for Egypt, provided it is activated in a structured and transparent manner. It can serve as an additional revenue stream for projects and enhance investment attractiveness. Specifically, the African market could play a vital role if it is effectively linked to global markets.

9-To what extent do you believe Egypt is on the right track to achieving its renewable energy targets?

Egypt is certainly on the right track; however, the forthcoming phase is the most critical. The focus must now shift from the success of individual projects to the success of the market as a whole. This transition represents the true challenge.

10-What are the most prominent challenges facing solar energy investment in Egypt today?

Several challenges currently confront solar energy investment in Egypt. Chief among these are issues related to grid capacity and infrastructure, alongside the need for long-term policy clarity. Additionally, the sector requires robust financing mechanisms and must address the critical integration of energy storage solutions.

11-In your view, what are the most promising investment opportunities in Egypt’s energy sector?

There are numerous investment opportunities currently available in Egypt’s energy sector. These include industrial-scale solar energy applications, energy storage projects, and green hydrogen initiatives. Furthermore, there is significant potential in the local manufacturing of solar energy components.

15-Is it possible for solar energy to become Egypt’s primary energy source in the future?

Solar energy can certainly serve as a cornerstone of Egypt’s energy landscape; however, the energy mix will remain diverse to ensure stability.

16-As Chair of the Board of Directors of the EREA, what message would you like to convey to decision-makers and investors regarding the future of renewable energy in Egypt?

Egypt possesses all the necessary fundamentals to become a regional renewable energy hub. What is required now is to accelerate the pace of reforms, strengthen public-private partnerships (PPP), and focus on building a sustainable market rather than merely implementing standalone projects.

In the coming phase, the EREA—which I am honored to chair—will play a pivotal role in supporting the transition from project-based success to a sustainable market ecosystem. This will be achieved by fostering collaboration between the state and the private sector and advocating for long-term policies rooted in efficiency and sustainability.

Established in March of this year, EREA serves as an institutional platform dedicated to the development of Egypt's renewable energy market. The association was founded with the support and funding of the European Bank for Reconstruction and Development (EBRD) during its inaugural year, reflecting its vital role in enhancing private sector participation and accelerating the energy transition. Furthermore, its Board of Directors comprises a select group of leading development and investment firms within Egypt’s renewable energy sector.