In power production, solar power in Egypt would liberate gas and oil. The market value particularly of natural gas and hence, the opportunity cost, will in the future be several times the current input price in power plants. With scarcer oil and gas directed to premium use,
solar power energy
together with wind energy, hydro, geothermal and natural gas could make it dispensable for MENA countries to enter into the coal or nuclear path with the uncertainties and risks of the fuel cycle or carbon capture and storage respectively. From a cost point of view, Egypt solar power energy is expected to become competitive along the learning curve, once the full cost are internalized into fossil or nuclear based alternatives. In specific situation, where both, heat and power demand is concentrated in sites with good solar power and land resources, the competitiveness will be attained sooner than later.
Examples from countries in similar climate zones that show economical energy Efficiency building and energy efficiency technologies are available to reduce the electricity loads without curtailing on comfort in working place or home. Egypt lags far behind in the use of energy efficiency and renewable energy technologies (such as: solar water heating in Egypt) after other Mediterranean countries. This makes the building sector in Egypt another priority area of energy efficiency and renewable energy.
Intelligent combinations of supplying hot water demand of washing machines, bathrooms and kitchen with external storage of hot water, supplied from solar water heating in Egypt would strongly reduce electricity loads for hot water and reduce cooling loads.