Egypt signs $1.8bn renewable energy and battery manufacturing projects

Egypt has signed several agreements and contracts to establish two integrated projects in renewable energy and local manufacturing of its components, with total investments exceeding $1.8bn, according to a cabinet statement cited by Al Ahram.

PM Mostafa Madbouly witnessed the signing of the deals. 

The first project, developed by Norway’s Scatec (SCATC: OSLO), involves building a large-scale solar power plant in Minya governorate under the name Energy Valley – Valley for Sustainable Energy, alongside battery energy storage systems.

The second project, led by China’s Sungrow, will establish a battery energy storage system (BESS) manufacturing plant in the Suez Canal Economic Zone (SCZone). Part of the factory’s output will be supplied to the Minya solar project. Both projects are being implemented in cooperation with Egypt’s Ministry of Electricity and Renewable Energy and the SCZone.

Madbouly said that localising renewable-energy-related industries is a cornerstone of Egypt’s strategy to strengthen energy security and advance the green transition, adding that attracting such large-scale investments reflects growing confidence in Egypt’s investment climate.

As part of the agreements, a power purchase agreement (PPA) was signed between the Egyptian Electricity Transmission Company and Scatec’s local project company, Valley for Sustainable Energy. Land usufruct contracts were also signed with the New and Renewable Energy Authority for the Minya project, and with SCZone for Sungrow’s battery factory within the TEDA Egypt zone in Sokhna.

Scatec also awarded Sungrow a supply contract for the battery systems used in the Energy Valley project.

The Energy Valley project will deliver 1.7 GW of solar capacity, supported by 4 GWh of battery storage distributed across Minya, Qena and Alexandria, making it one of the largest integrated clean energy projects globally and the first in the region to provide round-the-clock clean electricity at competitive tariffs.

Sungrow’s plant, the first BESS manufacturing facility in the Middle East and Africa, will be built on 50,000 square metres, with an annual production capacity of 10 GWh at full operation. Production is scheduled to begin in April 2027.