Egypt has just concluded $1.8 billion investment agreements with Norwegian and Chinese partners for a massive solar power project coupled with battery storage, designed to secure its electricity supply and accelerate its energy transition. This megaproject aligns with the national objective of increasing renewable energy to 42% of the electricity mix by 2030, while simultaneously developing a local green technology industry.

A Strategic Solar Megaproject

The agreement provides for the construction, in Upper Egypt, of a photovoltaic solar power plant of approximately 1.7 GW, supported by battery storage systems with a capacity of 4 GWh, making it one of the largest hybrid solar-battery installations in the world. This system is intended to provide a virtually continuous supply of renewable energy, capable of meeting industrial demand and reducing the risk of power outages during peak hours.

• An estimated annual production of nearly 6,000 GWh of green electricity, fed into the national grid.
• A 25-year power purchase agreement (PPA), denominated in dollars, guarantees the long-term profitability of the project.

Norwegian-Chinese partnership at the heart of the project

The Norwegian developer Scatec is leading the hybrid project, with a total capacity of 1.95 GW of solar power and 3.9 to 4 GWh of battery storage, under several contracts signed with the Egyptian government. The Chinese group Sungrow, for its part, is investing in a battery storage manufacturing plant in the Suez Canal Economic Zone, which is slated to supply a significant portion of the equipment for the power plant.

• Scatec describes this operation as the largest project in its history, combining solar power and battery energy storage (BESS) on a large scale.
• The new Sungrow plant will strengthen local industrial integration by relying on battery production and the operation of the country’s large solar power plants.

A lever for energy security

These investments respond to Egypt’s desire to reduce its dependence on fossil fuels, secure its electricity supply, and limit the strain on public finances related to energy imports. The hybrid solar-battery system is expected to provide more stable and reliable electricity, while improving the grid’s resilience to rapidly growing demand.

• The batteries will also be used to provide grid stability and frequency support services, essential for integrating more renewable energy sources.
• In Upper Egypt, the project will notably power the Wadi Al-Saririya industrial zone, enhancing the region’s attractiveness to new investors.

Accelerating Green Industrialization

Alongside its solar power plant, Egypt is focusing on localizing the renewable energy value chain through industrial complexes dedicated to solar panels, cells, and storage systems in the Suez Canal Zone. The country aims for local content of up to 90% for certain equipment, with some cells destined for export and storage systems primarily reserved for the domestic and regional markets.

• The solar megaproject and battery factory are part of a broader strategy to develop a solar industrial hub in Africa and the Middle East.
• This momentum opens up opportunities for further partnerships with European, Asian, and Gulf groups in the manufacturing and financing of green technologies.

A strong signal for Africa and investors

With these $1.8 billion in green investments, Egypt is sending a powerful signal to international investors about the bankability of its renewable energy projects and the credibility of its climate trajectory. For Africa, this project illustrates the potential of large-scale hybrid solar-storage systems to simultaneously address the challenges of energy access, grid stability, and emissions reduction.

• Long-term PPAs, denominated in hard currency, are emerging as a key tool for attracting private capital to African energy infrastructure.
• This type of project also sets a precedent for other African countries seeking to combine energy transition, local industrialization, and electricity security.

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