Scatec to construct 1GW solar project in Egypt

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Scatec to construct 1GW solar project in Egypt

Scatec ASA has sealed a deal with the Egyptian Electricity Transmission Company (EETC) for energy project in Egypt. The deal involves a 25-year power purchase agreement (PPA) 1 GW of solar energy and a 100 MW/200 MWh battery storage system, combining both elements to provide reliable, clean energy.

The project will be Egypt’s first hybrid solar and battery storage project. This milestone aligns with Scatec’s leadership in renewable energy in Egypt. The company is set to manage the entire lifecycle of the project, including Engineering, Procurement & Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M).

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Energy in Egypt

The project is expected to enter construction in the first half of 2025, after finalizing financial arrangements and securing development finance from several institutions. Scatec’s CEO, Terje Pilskog, expressed satisfaction with the agreement, highlighting the company’s commitment to finalizing land lease and grid connection agreements, securing financing, and preparing for construction.

Egypt has initiated a number of energy sector reforms, gradually reducing electricity subsidies and introducing feed-in tariffs to promote renewable energy production. The energy sector reforms recently initiated by the country have resulted in a significant increase in investments which have boosted electricity production over the last 5 years and ensured a stable supply across the country. Egypt also has plans to increase the share of renewables in the electricity mix to 42% by 2035.