The Minister of Electricity and Renewable Energy, Mahmoud Esmat, and the Chairman of the Arab Organization for Industrialization (AOI), Mokhtar Abdel Latif, witnessed the signing of a major contract to establish a joint industrial project for solar panel production. The agreement was signed between the Arab Renewable Energy Company, a subsidiary of AOI, and Sweden’s leading Sunshine Pro company.

The project will involve the establishment of an automated solar panel production facility under the name Arab-Swedish Energy Factory (ASEF), with a production capacity of 1 GW annually. This collaboration represents a strategic step toward bolstering local manufacturing capabilities, reducing imports, and increasing foreign investments. It also supports Egypt’s push to expand the role of the private sector in the sustainable development agenda.

Esmat emphasized the importance of cooperation with key industry players to accelerate the implementation of renewable energy projects, improve the stability of the national grid, and reduce carbon emissions. “The private sector is a crucial partner in our renewable energy projects. The Ministry is committed to supporting and encouraging local and foreign investments in clean energy technologies, including solar panels,” he stated.

Abdel Latif highlighted the project’s potential to meet the growing demand for renewable energy solutions in Egypt, Africa, and the Middle East. “Our vision is to strengthen local manufacturing, meet local market needs, and export competitively priced, high-quality products to the global market. The ASEF factory will leverage modern digital manufacturing systems to produce world-class solar panels,” he said.

The project aligns with Egypt’s national strategy for integrated and sustainable energy, which targets 42% renewable energy in the national energy mix by 2030 and over 60% by 2040. It also reflects global advancements in renewable energy technologies and energy storage systems.

The initiative is part of the government’s ongoing efforts to localize modern technologies and reduce reliance on fossil fuels.

The AOI Chairman also announced plans to develop comprehensive smart solutions in collaboration with Sunshine Pro, aimed at diversifying the energy sector and introducing innovative manufacturing technologies to the region.

Chairman of Sunshine Pro, Yehia Metini, expressed pride in collaborating with the AOI, citing the institution’s historic leadership in Egyptian industry. “This partnership represents a milestone in localizing advanced technologies and developing joint renewable energy projects to serve domestic, Arab, and African markets, as well as open new export opportunities worldwide,” he said.

He added that the partnership would significantly contribute to Egypt’s economy by enhancing industrial capabilities and supporting the country’s transition to clean energy.