Scatec plans $94.5mn power infrastructure project in Upper Egypt

Norwegian renewable energy firm Scatec (OSE:SCATC) is planning to develop a 500-kilovolt electricity transformer station in Samalut, Minya governorate, alongside a high-voltage transmission line extending around 70 kilometres, Asharq Business reported on May 13, quoting a government official. 

The project will involve total investments of EGP 5bn ($94.5mn) and is intended to support the transfer of electricity generated from the company’s planned solar energy projects in southern Egypt

The move comes as part of the company’s renewable energy expansion strategy in Egypt. It also aligns with broader government efforts to modernise electricity transmission infrastructure and support the integration of large-scale renewable energy into the national grid. The infrastructure is expected to strengthen the stability of Egypt’s national electricity grid and improve the efficiency of power transmission from renewable energy facilities to consumption centres.

The transformer station and transmission line will connect renewable energy projects with a combined generation capacity of up to 1,700 MW, as well as battery energy storage systems with a capacity of 4,000 MWh. Procedures related to awarding contracts and beginning implementation are expected to be completed soon, with the project scheduled to enter operation by the end of 2027.

Egypt has been accelerating investments in renewable energy and grid infrastructure as part of its strategy to increase the share of clean energy in the national energy mix and reduce dependence on conventional fuels. Samalut has increasingly attracted renewable energy investments due to its proximity to major solar development areas in Upper Egypt.

Earlier in May, Scatec signed a partnership agreement with the National Bank of Egypt (NBE) to bring the lender in as an equity partner in the Obelisk solar power project in Upper Egypt. Under the partnership deal, the NBE will acquire a 20% stake in the project, which is expected to deliver 1.1GW of solar capacity alongside 200MWh of battery energy storage.

Scatec has nearly 6.4GW of renewables capacity in operation or under construction worldwide, alongside 2GWh of energy storage across multiple markets.