Egyptian company Kemet has signed a memorandum of understanding (MoU) with China’s TBEA to cooperate in the field of renewable energy and to transfer and localize the manufacturing of power grid connection systems for Egypt’s national electricity grid.

The agreement also includes plans to establish Egypt’s first factory for producing solar power inverters.

An inverter is an electronic device that converts direct current (DC), generated from sources such as solar panels or batteries, into alternating current (AC), which is used by most household and industrial electrical appliances.

 Inverters are a critical component of solar energy systems and backup power solutions, ensuring power continuity and efficient energy conversion, particularly for equipment requiring variable operating speeds, such as air conditioners.

The MoU comes as part of Egypt’s broader strategy to expand the use of clean and renewable energy within the national energy mix, as well as ongoing cooperation with China to localize the manufacturing of electrical equipment and energy storage batteries.

Separately, Mahmoud Esmat, Minister of Electricity and Renewable Energy, held discussions with Huang Hanjie, Chairman of TBEA, on enhancing cooperation and partnership between the two sides.

The talks focused on accelerating the establishment of manufacturing facilities, transferring advanced technologies, and implementing training programs and capacity-building initiatives.

Minister Esmat stressed that the electricity and renewable energy sector continues to operate under an integrated strategy aimed at technology transfer and industrial localization, in close partnership with the private sector.

He also emphasized that the Egyptian state provides full support and incentives to encourage private-sector participation, expanding its role through successful partnerships in industrial localization, maximizing value-added from raw materials through manufacturing industries, and implementing low-carbon renewable energy projects.