Egypt, plans to start its first solar power unit in 2010, and wanted to expand solar power production for possible export to Europe via Libya and Tunisia, which are in turn linked with Morocco and Spain.

This first solar thermal power plant will generate 140MW, including a solar share of 20MW. And is co-financed by Global Environment Facility (GEF).

The North African country has set an ambitious renewable energy program to generate 500 MW of solar energy, 600 MW of wind power, and 600 MW of hydroelectric power by 2017.

The Egyptian government has also installed wind capacity of 430 megawatts and is adding 120 megawatts by mid 2010.

The growth of the economy and population are exceeding the current supply of traditional resources. The energy demand rises by 7 percent annually. However, Conventional fuels are becoming increasingly expensive and there is recognition that these fuel resources are finite.

The Egyptian electricity sector recently drafted a new electricity act to encourage renewable energy utilization and private sector involvement in the process.

A strategy adopted by the Supreme Council of Egypt is aimed to develop renewable energy resources and to generate 20% of its power from the country renewable sources by 2020.

The government is also promoting Egypt's transition to renewable energy at the policy level through new energy laws and decreased energy subsidies.

Egypt receives some of the highest annual solar radiation in the world, is also among candidates for a 550 billion dollar project to build solar collectors in North African deserts to supply 15 percent of Europe's energy by 2020.