Speaker
Description
This study conducts a comparative techno-economic analysis of two renewable energy strategies for Egypt’s energy transition: hydrogen-based electrification through the production of green hydrogen via electrolysis and direct electrification using solar photovoltaic and wind energy. The study focuses on Egypt’s Suez Canal Economic Zone, a key area for renewable energy development, and utilizes HOMER PRO software to model both systems under the same load and resource conditions. The goal is to assess each system’s feasibility in terms of cost, operational efficiency, scalability, and environmental impact.
Simulation results show that direct electrification is the more viable option for domestic energy supply. It delivers electricity at an LCOE of $0.23 per kilowatt-hour, meets 99.98% of the load, and achieves full reliance on renewable energy sources. In contrast, the hydrogen-based model has a higher Net Present Cost of $1.15mn and an LCOH of $10.6/kg. Due to conversion losses, it can meet only 13.2% of the electricity demand if hydrogen is converted back to electricity with the same solar and wind energy.
Despite its limitations, hydrogen-based electrification holds strategic value for Egypt’s long-term energy and export goals. The country’s geographic position, renewable resource abundance, and policy momentum provide a foundation for becoming a major hub in the global green hydrogen market. Therefore, a dual strategy is recommended. Direct electrification should be expanded for short-term domestic needs, while investments in hydrogen infrastructure should be developed for long-term industrial use and export.
The study contributes to the growing body of research supporting clean energy transitions in emerging economies and provides actionable insights for policymakers, planners, and investors seeking to align Egypt’s energy future with its national goals and international climate commitments.
