Egypt approves two major renewable energy projects to boost power grid

The Egyptian cabinet approved a major international partnership to develop a 900 MW wind power project in Ras Shuqair, according to a statement cited by Asharq Business on December 10. 

The consortium, which includes Orascom Construction (OC: EGX), French energy firm Engie (ENGI: EPA), and Japan’s Toyota Tsusho (8015: TSE), will execute the project. The agreement also includes the signing of a land usufruct agreement between the New and Renewable Energy Authority (NREA) and the consortium, along with a power purchase agreement between the Egyptian Electricity Transmission Company and the project developers.

This move is part of Egypt’s ongoing efforts to expand renewable energy capacity in the national grid to meet rising electricity demand, while reducing dependence on fossil fuels, in line with the country's energy strategy.

Egypt's ambitious renewable energy plan targets generating over 42% of its electricity from renewable sources by 2030 through the usage of abundant solar and wind resources. Beyond domestic consumption, the plan also aims to transform Egypt into a regional energy hub by developing massive clean energy projects and transmission interconnectors for export to Europe and other neighbouring countries.

In addition, the government approved a proposal from Norway’s Scatec (SCATC: OSE) to develop a hybrid solar and battery storage project. The project will include a 1.7 GW solar power plant, 1500 MWh of battery storage systems, and a 100 MW continuous power output over 24 hours. The project also involves constructing a new 500 kV substation and linking it to the main grid.

Scatec’s project is expected to significantly enhance Egypt's renewable energy capacity and improve the stability and reliability of the national grid, with battery storage systems of up to 4 GW operating under a Grid Forming system.

The cabinet also approved the signing of energy purchase and grid connection agreements for Scatec’s project.