Egypt is moving to plug the biggest gap in its renewable energy strategy: storage. Local industrial services player Kemet and China’s energy storage batteries manufacturer Cornex inked a strategic cooperation agreement to establish a USD 200 mn energy storage battery cells factory in Egypt using local raw materials, according to a statement from the Electricity Ministry.

The key here isn’t the size of the deal, but the annual production of 5 GWh of battery storage capacity. This project and others — including last week’s news that China’s Sungrow will build a 10 GWh annual capacity battery storage systems factory to support Scatec’s Energy Valley project — help address one of the most expensive and import-heavy components of large renewable projects.

Without a real focus on energy storage, Egypt’s efforts to reach a 42% renewables share by 2030 will hit a brick wall. Despite the many advantages of wind and solar, one key challenge is that generation rarely aligns with peak demand. Solar output falls just as Egyptians head home and turn on the lights, televisions, and A/Cs. Meanwhile, wind power is often unpredictable and can change at a moment’s notice, leaving gas-powered plants to step in and fill the gap.

Enter batteries, which allow utilities to store energy generated off-peak to release into the grid during higher-demand hours. Energy storage systems also make it easier to manage flows along our aging grid.

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