On January 18, 2026, Egypt significantly advanced its domestic energy manufacturing capabilities with the signing of a landmark Memorandum of Understanding (MoU) between the Egyptian company Kemet and China’s TBEA.
This agreement, witnessed by Mahmoud Esmat, Minister of Electricity and Renewable Energy, marks the establishment of Egypt’s first inverter manufacturing plant, a critical component for converting solar energy into usable grid power.
Strategic Manufacturing & Technology Transfer
The partnership is designed to end Egypt’s reliance on imported grid-connection technologies by localizing production within the country.
- Inverter Localization: The plant will produce central and string inverters, leveraging TBEA’s advanced 1,500V and high-density power conversion systems (PCS).
- Grid Modernization: Beyond hardware, the MoU covers the transfer of manufacturing technologies for grid-connection systems, ensuring the national unified grid can safely absorb the massive influx of renewable energy planned for the next decade.
- Integrated Power Chain: This facility will supply the “Energy Valley” and other mega-projects, creating a domestic “industrial synergy chain” from component manufacturing to energy application.
Broader Context: The $700 Million Green Surge
The Kemet-TBEA deal was part of a larger, multi-billion-dollar series of agreements signed in mid-January 2026 to transform Egypt into a regional energy hub.
| Project / Partner | Investment | Annual Capacity | Focus Area |
| Kemet + TBEA | Part of $700M bundle | TBD (First in Egypt) | Solar Inverters & Grid Tech |
| Kemet + GCL Group | $500 Million | 5 Gigawatts (GW) | Solar PV Cells & Modules |
| Kemet + Cornex | $200 Million | 5 Gigawatt-hours (GWh) | Energy Storage Batteries (BESS) |
| Sungrow (SCZONE) | Separate Deal | 10 Gigawatt-hours (GWh) | Battery Manufacturing (April 2027 start) |
National Energy Strategy 2030/2040
Minister Mahmoud Esmat emphasized that these local manufacturing hubs are the “foundation” for Egypt’s updated national energy strategy:
- 2030 Target: Achieving a 42% share of renewable energy in the national mix.
- 2040 Target: Scaling to 60–65% renewable energy.
- Export Goals: Positioning Egypt as a primary exporter of green energy and equipment to Europe via upcoming subsea interconnection projects.