Generating sustainable
energy with solar collectors

The demand for electricity and thermal energy is on the rise

Egypt is the most populous country in the region. The energy demand is increasing from year to year. So far, about three quarters of it come from conventional sources. To kick off the energy transition, the government wants to increase the share of renewable energy to over 40 percent by 2035. The aim is to reduce CO2 emissions and improve air quality in urban areas. Furthermore, the energy transition should help protect consumers from rising oil prices. In addition to electricity generation, the industrial demand for thermal energy also offers a high potential for the use of sustainably generated energy in the country. The sectors of food production, dairy products, textiles and the pulp and paper industry are particularly dependent on thermal energy.

A production plant for solar collectors is being built west of Cairo

Creative Power Solutions (CPS) is based in Switzerland and will enter mass production of solar collectors for the local market in a consortium with Egyptian company AMCO and support from Invest for Jobs. CPS has international operations in the power generation sector and has subsidiaries in the US and the United Arab Emirates. AMCO has been providing various services to Egyptian companies since 1985, mainly in procurement. A special purpose enterprise established by CPS and AMCO will build up a semi-automated production plant for solar collectors in the Sadat City Industrial Park. The technology of the collectors is proven and comes from the Swedish company Absolicon. The main components of the plant will be supplied by ABB and Siemens. At full capacity, the plant can produce up to 18,000 units per year. This corresponds to an area of 100 square meters. The collectors use parabolic mirrors to concentrate solar energy and heat water to up to 160 degrees Celsius. The hot water is then used to generate electricity or can feed its thermal energy into industrial processes.

By manufacturing in Egypt, the collectors are to be marketed at a lower price than imported products. The manufacturing price is crucial because Egypt has hardly any programmes to subsidise investments into CO2 savings. In addition to Egyptian clients, the company also wants to supply customers in the Gulf States. The project is intended to create jobs in an industry that is trendsetting for Egypt's energy supply.

Jobs and knowledge transfer

To manufacture the collectors, 91 new jobs will be created at the Sadat City site in the areas of production, administration, and management. Almost all the newly hired staff will undergo training programmes so that they can be integrated into the highly technical production processes. In this way, the investment project also contributes to the transfer of knowledge in an industry of the future.

The consortium will work with several companies that have agreed to create another 264 jobs. These include metal processing companies that manufacture preliminary products for the collectors, transport service providers and other partners who ensure that the solar systems are installed professionally at the customers' sites. About one third of the total number of newly created jobs will be given to young professionals who are not older than 24 years.

The consortium plans to invest a total of 5.4 million euros. The Facility Investing for Employment grants a subsidy of 2.7 million euros (50 %). These funds are primarily used to subsidise the construction of the production plant and the purchase of the machines to assemble the collectors.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries.