Egypt has signed $1.8 billion in renewable energy agreements with Norway’s Scatec and China’s Sungrow, in a move that will deliver Africa’s largest solar-plus-storage project and establish a battery manufacturing plant in the Suez Canal zone, officials said.
The agreements, announced by Egyptian state television on Sunday, are part of Cairo’s strategy to expand renewable energy capacity and support its goal of achieving 42 percent of power generation from renewables by 2030.
Under the first deal, Scatec will develop a hybrid solar and battery storage project in the Minya governorate in Upper Egypt, with a total capacity of 1.95 gigawatts of solar power and around 3.9 gigawatt-hours of energy storage. The project includes a 25-year power purchase agreement with the Egyptian Electricity Transmission Company.
The hybrid project combines a large-scale photovoltaic plant with batteries capable of storing and discharging electricity over several hours, providing near-continuous power and reducing reliance on thermal plants. In addition, two standalone battery projects are planned to support grid stability.
“By integrating cutting-edge solar and battery storage technologies, we deliver sustainable electricity to Egypt on a near-continuous basis, as well as grid stabilization services, supporting both the country’s energy transition and the region’s long-term economic development,” Scatec Chief Executive Terje Pilskog said.
Scatec will lead engineering, construction, operation, and maintenance of the project, which represents the largest solar-plus-storage facility on the African continent.
The second agreement, signed with Sungrow, provides for the construction of a battery manufacturing plant in the Suez Canal Economic Zone. Part of the plant’s output will be allocated to support Scatec’s solar projects in Egypt. The investment is designed to enhance local industrial capacity, secure battery supply for the renewable energy sector, and lay the foundations for a national energy storage ecosystem.
Egyptian officials said the two agreements reflect a shift in the country’s energy strategy, emphasizing not only the expansion of renewable generation but also the integration of storage and industrial development to create a more stable and controllable power system.
“The projects underscore Egypt’s commitment to modernizing its energy infrastructure while building local manufacturing capabilities and adding value within the economy,” an energy ministry spokesperson said.
Analysts note that hybrid solar-plus-storage systems are increasingly used worldwide to mitigate the intermittent nature of renewable generation, smoothing electricity output and reducing dependence on fossil-fuel plants.
The deals are part of a broader push by Egypt to diversify its energy mix. While the country has rapidly expanded solar and wind capacity in recent years, grid integration and storage remain crucial to ensure reliability and efficiency.
The Minya project, combined with the Sungrow battery factory, positions Egypt as a regional hub for renewable energy innovation. The initiatives are expected to support industrial growth, create jobs, and enhance energy security while advancing the country’s transition toward cleaner power sources.
Cairo aims to leverage foreign partnerships to accelerate its energy transition, attract investment, and develop technical expertise in both renewable generation and energy storage technologies.
By combining large-scale generation, advanced storage, and local industrial development, the agreements signal a new phase in Egypt’s approach to energy, balancing capacity expansion with grid stability and economic development.
