Egypt has signed renewable energy agreements worth $1.8 billion to develop large-scale solar power projects, battery energy storage systems, and local manufacturing facilities, marking one of the country’s most significant clean energy investments.
The agreements were signed on January 11, 2026, in the Suez Canal Economic Zone (SCZone) and were witnessed by Prime Minister Mostafa Madbouly, senior government officials, and representatives of international renewable energy companies.
Two Flagship Clean Energy Projects
The investment package includes two major projects: the Energy Valley Solar-Plus-Storage Project, led by Scatec ASA, and a battery manufacturing facility to be developed by Sungrow.
Energy Valley Solar-Plus-Storage Project
The largest share of the investment will go toward a utility-scale solar-plus-storage project developed by Scatec ASA, a Norwegian renewable energy company.
Known as the Energy Valley for Sustainable Energy, the project will be located primarily in Minya Governorate in Upper Egypt, with battery energy storage systems distributed across Minya, Qena, and Alexandria to enhance grid flexibility and address transmission constraints.
- Solar PV capacity: 1.7 GW
- Battery energy storage: 4 GWh
- PPA : 1.95 GW
- Estimated annual generation: Around 6,000 GWh of renewable electricity
The hybrid configuration will enable dispatchable clean power, allowing electricity to be supplied even during non-solar hours.
Grid Infrastructure and Commercial Structure
The project includes the development of new substations, 500 kV transmission lines, and advanced grid stabilization technologies. These upgrades are designed to reduce geographical bottlenecks, improve grid reliability, and support competitive power pricing.
Scatec has signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) under a USD-denominated, pay-as-produced structure. Land will be allocated under a usufruct agreement with the New and Renewable Energy Authority (NREA).
Scatec will handle engineering, procurement, and construction (EPC), as well as asset management and operations and maintenance (O&M). The project is expected to reach commercial operation by mid-2026.
Battery Manufacturing Facility by Sungrow
In parallel, Sungrow, a Chinese clean energy technology company, will establish a battery energy storage manufacturing plant in the Suez Canal Economic Zone, located in the TEDA industrial zone in Ain Sokhna.
The facility is expected to support Egypt’s growing demand for energy storage solutions while strengthening domestic supply chains and reducing reliance on imports.
- Factory area: Approximately 50,000 square meters
- Annual production capacity: Around 10 GWh of battery energy storage systems
- Primary application: Supplying local renewable energy projects, including the Energy Valley project
- Expected commercial operations: 2027
The plant will be among the first large-scale battery manufacturing facilities in the Middle East and Africa, reinforcing Egypt’s ambition to become a regional clean energy and manufacturing hub.
The Sungrow manufacturing facility is expected to create around 150 direct jobs, while the Energy Valley solar-plus-storage project is anticipated to generate thousands of additional jobs during construction, operations, and across the renewable energy supply chain.
These projects further strengthen the industrial momentum of the SCZone, which currently hosts 190 operational factories and 150 facilities under construction.
Government Perspective and Outlook
Prime Minister Mostafa Madbouly described the agreements as a milestone, stating that Egypt is “entering the solar manufacturing era.” He emphasized growing international confidence in Egypt’s investment climate and the country’s focus on renewable energy, grid modernization, and industrial development.
With these agreements, Egypt advances its clean energy transition by combining large-scale renewable generation, long-duration energy storage, and local manufacturing, supporting national energy security and long-term decarbonization goals.
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