China’s state-owned utility giant State Grid will invest USD 500 mn to develop two solarprojects in Egypt, with a combined capacity of 900 MW, a government source told Asharq Business. The first project will be located in Minya and will have a capacity of 500 MW, while the second one will be in the Western Desert, with a capacity of 400 MW.

Timeline: Final contracts for the two projects are expected to be signed by the end of July, with implementation scheduled to begin in 4Q 2025.

The details: State Grid will finance and build two transformer stations that will feed the national grid. The Egyptian Electricity Transmission Company (EETC) will construct the connection lines. The government will allocate the required land for the projects under a usufruct agreement.

EETC will ink a 25-year power purchase agreement for the two projects at an average tariff of USD 0.02 per kWh (equivalent to around EGP 1). Payments will be made in USD, with a portion paid in the EGP equivalent.

IN OTHER ENERGY NEWS-

Scatec will soon break ground on its 1 GW solar plant and 200 MWh battery energy storage system (BESS) in Naga Hammadi after inking an agreement with EgyptAlum to begin implementation, according to a statement from a Public Enterprises Ministry statement. The project will be executed over 24 months in two 500 MW phases.

REMEMBER- This project to power the state-owned aluminum producer’s aluminum complex comes as EgyptAlum looks to comply with global sustainability and manufacturing standards to meet the EU’s Carbon Border Adjustment Mechanism (CBAM) rules, which will come into effect in 2026. EgyptAlum exports 50% of its production to Europe.

The project will cost some USD 650 mn, which will be 80% financed through non-recourse project debt, with the remainder to be covered by equity from Scatec and partners. 

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