EETC has signed long-term PPAs for large-scale solar energy and BESS capacity in Egypt
Scatec will build a 1 GW solar and 100 MW/200 MWh storage project as a leading hybrid solar and battery project in the country
AMEA Power has also secured PPAs for 1 GW solar and 600 MW BESS and a 300 MWh BESS project
Egypt has confirmed plans to expand its installed solar energy capacity by 2 GW after the Egyptian Electricity Transmission Company (EETC) entered long-term power purchase agreements (PPA) for 2 GW PV capacity. These agreements also pave the way for the addition of 1,100 MWh battery energy storage systems (BESS).
Norway’s Scatec has secured a 25-year dollar-denominated PPA for a 1 GW solar and 100 MW/200 MWh BESS hybrid project, calling it the 1st of hybrid solar and battery project in the country. It has already signed an early-stage cooperation agreement with the Egyptian Electricity Holding Company (EEHC) for this facility in December 2023 (see Scatec’s GW-Scale Solar PV & Storage Project In Egypt).
The company is currently finalizing land lease agreements, grid connection agreements, and financing to start construction on-site. It expects to reach a financial close in H1 2025 with various development financing institutions for concessional financing.
Scatec will provide EPC, asset management, and operations and maintenance (O&M) services for the Egyptian project. The Norwegian company has not revealed the location of the plant.
Earlier this year in February 2024, Scatec signed a cooperation agreement with Aluminium Company of Egypt (Egyptalum) for its 1 GW solar power plant in Nag Hammadi town to power the latter’s production facilities (see Solar Power For Green Aluminum Production In Egypt).
Additionally, the EETC has also signed up to offtake power from another 1 GW solar PV plant with a 600 MWh BESS in Aswan Governorate’s Benban region. This AMEA Power project will be the largest solar PV and BESS project in Africa, according to the UAE-based renewable energy company.
AMEA has also signed another agreement with the EETC for the development of a 200 MWh BESS project as an expansion of its existing 500 MW Abydos Solar PV Power Plant. This under-construction project will pioneer the 1st ever use of a utility-scale BESS solution in Egpyt, it added. It is due for commissioning by October 2024.
Both these AMEA PPAs represent a combined investment of $800 million.
These projects are part of Egypt’s plans to achieve a 42% share of renewable energy in its electricity mix by 2035, divided as 22% for PV, 14% for wind, 4% for CSP, and 2% for hydropower. In June 2024, Reuters reported Egyptian Electricity Minister Mohamed Shaker as saying that Egypt plans to raise the renewables target to 58% by 2040.
Egypt is also encouraging solar PV manufacturing investments in the country to support PV installations. Recently, the Suez Canal Economic Zone (SCZONE) signed a contract with Singapore-headquartered EliTe Solar for 8 GW PV manufacturing in the country, starting with 8 GW solar cells, following (see EliTe Solar Unveils 8 GW Solar PV Manufacturing Plans For Egypt).