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The Mabdouly government inked agreements backing two integrated clean energy projects worth some USD 1.8 bn — a solar and battery storage facility led by Norway’s Scatec. Critically, that solar facility will be fed by a battery manufacturing plant here in Egypt that’s being set up by China’s Sungrow.
The anchor project: Scatec signed a long-term power purchase agreement (PPA) with the Egyptian Electricity Transmission Company for some 1.95 GW of solar power and 3.9 GWh of battery storage. The 25-year, USD-denominated, pay-as-produced agreement is designed to deliver round-the-clock renewable power, Scatec said in a disclosure. Scatec will also set up two standalone battery projects in a bid to support services and ensure grid stability. (We had previously reported the project figures at 1.7 GW of solar and 4.0 GWh of battery storage.)
The project — called Energy Valley — will be located in Minya, delivering roughly 6 TWh of renewable energy a year, Scatec said. It includes new substations and dedicated transmission lines, with battery storage spread across Minya, Qena, and Alexandria to ease geographic bottlenecks and stabilize the grid.
Africa’s largest: “The combined capacity will be the largest solar and BESS installation in Africa and the largest investment in Scatec’s history,” according to the firm. Energy Valley also marks the region’s first around-the-clock renewables project.
More partners to join? The Norwegian player plans to bring in additional equity partners, but it will remain the lead developer on the projects. Scatec will handle EPC, asset management, and operations and maintenance. It aims to reach financial close in 2H 2026.
The manufacturing hook: Sungrow will build a battery storage systems factory in the Sokhna Industrial Zone, which will feed the Energy Valley project under a contract inked between the two sides. The plant will have an annual production capacity of 10 GWh, with production slated for April 2027.
Why this matters: Battery systems are one of the most expensive and import-heavy components of large renewable projects; producing them locally helps cut the import bill that accompanies battery storage projects.
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