Egypt Signs USD 1.8 Billion Deals with Scatec and Sungrow For Major Solar and Battery Projects

Egypt has inked agreements exceeding USD 1.8 billion with Norway's Scatec and China's Sungrow to advance two key renewable energy initiatives, boosting the country's green infrastructure. 

Prime Minister Mostafa Madbouly witnessed the signing alongside top officials, as announced by the Cabinet.

Solar-BESS Projects

Scatec will develop the 1.7 GW "Energy Valley" solar plant in Minya Governorate, paired with 4 GWh of battery energy storage systems (BESS) spread across Minya, Qena, and Alexandria. 

Scatec revealed that it had signed a power purchase agreement with the Egyptian Electricity Transmission Company for a total capacity of 1.95 gigawatts solar and 3.9 gigawatt-hours battery energy storage systems.

“By integrating advanced solar and battery technologies, we are providing Egypt with sustainable, round-the-clock power and grid stabilising services, supporting both the country’s energy transition and the region’s long-term economic development,” said Scatec chief executive Terje Pilskog.

Sungrow will build the Middle East and Africa's first BESS manufacturing plant in the TEDA Egypt zone at El-Sokhna, within the Suez Canal Economic Zone (SCZONE). Covering 50,000 sqm, the facility targets 10 GWh annual output, with operations starting April 2027.

Egypt's Energy Challenges and Renewable Push

Despite its role as a key Eastern Mediterranean gas producer, Egypt grapples with declining output. The nation imports costly LNG to cover shortfalls amid rising demand, even exporting gas to Syria recently.

Current renewables stand at 8,866 MW from wind, solar, and hydro. Since July 2024, additions include 1,150 MW wind, 700 MW solar, and 300 MWh storage. The capacity is set to nearly double to 17,991 MW by 2027 with over 9,000 MWh storage.

Recent deals bolster this. For instance, UAE-based Amea Power reached a deal with the International Finance Corporation and others to build a USD 700 million solar plant and battery energy storage system in Egypt to meet its growing electricity needs.  

The first phase of Egypt’s electricity connection project with Saudi Arabia is also nearing completion, with operations expected to begin in the near future. This is set to enable the two countries to exchange up to 3 GW of power, one of the largest electricity links in the MENA region.