EGYPT – Norwegian renewable energy developer Scatec has signed a Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a 1GW solar-plus-storage project in Egypt.
This groundbreaking initiative includes a 100MW/200MWh battery energy storage system (BESS), marking Egypt’s first co-located solar and storage project.
The EETC, a state-owned entity under the Egyptian Electricity Holding Company (EEHC), will purchase power from the Scatec project for 25 years.
Although Scatec has not disclosed technical details, the company aims to finalize financing and begin construction in the first half of 2025.
Scatec will also oversee the project’s engineering, procurement, and construction (EPC) and operations and maintenance (O&M).
“This is Egypt’s first hybrid solar and battery project, showcasing Scatec’s leadership in renewable energy development in the country,” said CEO Terje Pilskog.
“We are excited to finalize land leases, grid connections, and financing as we prepare for construction.”
Scatec’s latest move follows its expanding portfolio, with recent projects in Tunisia, Cameroon, and Brazil.
The company already operates 380MW of solar capacity in Egypt. Despite Egypt’s vast fossil fuel infrastructure, solar energy remains a smaller contributor, accounting for just 28% of the country’s renewable energy capacity in 2023, according to the International Renewable Energy Agency (IRENA).
Egypt has committed to expanding its renewable energy capacity, aiming to add 4GW of new projects by next summer.
This follows the recent government approval of Abu Dhabi Future Energy Company’s (Masdar) US$900 million investment in developing solar power plants in Upper Egypt, including Aswan.
Masdar will finance and operate the plants under a build, own, operate (BOO) model, with EETC purchasing the entire energy output for 25 years.
Final agreements on this project are expected to be signed by October, further strengthening Egypt’s renewable energy goals.
The NREA will allocate land for the project on a usufruct basis, in exchange for 2% of the generated energy.
Masdar aims to complete these projects and connect them to Egypt’s national grid by the end of 2025, utilizing photovoltaic cells and solar panels. An Egyptian partner is expected to be selected to handle the project’s civil works.
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