Egypt has signed renewable energy agreements worth a combined US $1.8bn with Norwegian renewable energy developer Scatec ASA and China’s Sungrow. The move is part of efforts to accelerate its clean energy transition, state television reported on Sunday.
The deals include major projects with Scatec ASA and Sungrow, reinforcing Egypt’s ambition to raise the share of renewables to 42% of its electricity generation mix by 2030. Officials, however, have warned that achieving this target will depend on increased international financial and technical support.
Under the agreements, Scatec will develop a large-scale solar power and battery storage project in Minya, Upper Egypt. The project will have a solar generation capacity of 1.7 GW, supported by battery energy storage systems (BESS) totaling 4 GWh, according to an Egyptian cabinet statement.
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Long-term power purchase arrangements
In parallel, Sungrow will establish a battery manufacturing facility in the Suez Canal Economic Zone, producing energy storage systems, a portion of which will be supplied to the Minya project. The factory is expected to support Egypt’s growing domestic demand for grid-scale energy storage and strengthen local manufacturing capacity.
The agreements also include long-term power purchase arrangements, with Scatec signing a 25-year, USD-denominated, pay-as-produced Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). The PPA covers a total of 1.95 GW of solar capacity and 3.9 GWh of battery storage.
According to Scatec, the projects comprise one integrated solar-plus-storage hybrid system designed to provide continuous, around-the-clock renewable baseload power, as well as two standalone BESS facilities to deliver grid stability and ancillary services.
Once completed, the combined projects are expected to generate approximately 6,000 GWh of renewable electricity annually. They will represent the largest solar and battery storage installation in Africa and the biggest investment in Scatec’s history.
“Signing this groundbreaking PPA further cements Scatec’s leading position in delivering reliable, renewable energy at scale in Africa,” said Scatec CEO Terje Pilskog, noting that the projects will support Egypt’s energy transition while enhancing grid resilience and long-term economic development.
Scatec will act as lead developer, providing engineering, procurement and construction (EPC) services, as well as asset management and operations and maintenance, and plans to bring in additional equity partners for the projects.
