In a significant step toward bolstering its renewable energy capacity, Egypt has recently signed agreements worth over $1.8 billion with Norway’s Scatec and China’s Sungrow. This initiative aims to develop two major renewable energy projects that will enhance the nation’s green energy infrastructure, as confirmed in a statement from the Cabinet. The deal was officiated at a signing ceremony attended by Prime Minister Mostafa Madbouly and a host of senior government officials, marking a milestone in Egypt’s energy landscape.
The first of these groundbreaking projects is dubbed “Energy Valley,” which will be developed by Scatec in the Minya Governorate. This ambitious plan involves the construction of a 1.7-gigawatt (GW) solar power plant. An exciting addition to this facility will be the integration of 4 gigawatt-hours (GWh) of Battery Energy Storage Systems (BESS), strategically distributed across the regions of Minya, Qena, and Alexandria. This project not only signifies a leap in solar energy production but also emphasizes the importance of energy storage in stabilizing the energy grid.
On the other end, the collaboration with Sungrow entails the establishment of a cutting-edge battery storage manufacturing factory located within the Tianjin Economic-Technological Development Area (TEDA) in the El-Sokhna industrial zone, which is part of the Suez Canal Economic Zone (SCZONE). Spanning an impressive 50,000 square meters, this facility will be the first of its kind in the Middle East and Africa dedicated to the production of BESS. Once fully operational, it is anticipated to achieve an annual production capacity of 10 GWh, with initial production expected to commence in April 2027. This factory points toward Egypt’s ambition to become a hub for renewable energy technology in the region.
Both projects are being implemented with the full cooperation of Egypt’s Ministry of Electricity and Renewable Energy and the General Authority for SCZONE. They align perfectly with Egypt’s ambitious plans to increase the share of renewable energy in the national electricity mix, with a target of over 42% by 2030 and 60-65% by 2040. This alignment highlights Egypt’s commitment to sustainable energy as part of its larger developmental strategy.
Scatec has established itself as a leading player in the renewable energy sector, focusing on solar, wind, and even green hydrogen projects across emerging markets. The company has a strong footprint in Egypt and has previously contributed significantly to the Benban Solar Park. More recently, Scatec has been involved in developing Egypt’s first green hydrogen facility in Ain Sokhna, further solidifying its role as a key contributor to the nation’s renewable energy ambitions.
Similarly, Sungrow is a global leader in inverter and energy storage solutions, serving the renewable energy industry across over 150 countries. The company is currently transitioning in Egypt, moving from being primarily a technology supplier to becoming a key manufacturer. This shift is highlighted by the establishment of their BESS factory in TEDA, which reinforces their commitment to local production and innovation in renewable energy technology.
This strategic partnership not only boosts Egypt’s renewable energy capacity but also integrates advanced technologies that will facilitate energy transition, ultimately contributing to a more sustainable future for the nation. With these significant investments, Egypt is making strides in its journey towards energy independence and carbon reduction.