Amea Power signs EPC contracts for 1.5 GWh of battery storage

Egypt’s national grid is getting a 1.5 GWh battery storage upgrade — and a major push to manufacture these systems locally. Emirati renewables player Amea Power signed engineering, procurement, and construction contracts for two standalone battery energy storage system (BESS) projects with China Energy Engineering Corporation, Gotion, and Al Nowais Group, according to a statement from the Electricity Ministry.

The breakdown: The agreements cover the 1 GWh Nefertiti plant in Benban and the 500 MWh Horus plant in Zafarana, alongside a new factory that will produce up to 3 GWh of battery storage systems annually. The location, ownership structure, and manufacturing scope have not been disclosed.

Financing might already be in the works: The European Bank for Reconstruction and Development is currently mulling a USD 223.5 mn debt package to bankroll both plants.

Why it matters: Utility-scale battery storage is fast becoming the linchpin of Egypt’s renewable energy ambitions. Pairing solar and wind farms with storage allows the grid to smooth out the intermittent nature of clean energy without burning through natural gas reserves during peak hours. The government is targeting 14.3 GWh of storage capacity by 2028, with nearly 1 GW planned to come online this year.

Securing the supply chain: The upcoming Amea-Gotion facility joins a rapidly expanding pipeline of local production agreements designed to slash Egypt’s import bill. This includes a 10 GWh factory by China's Sungrow and a USD 200 mn, 5 GWh facility by Kemet. To hedge the country’s bets and bypass pricey lithium imports, Draschem is also pushing forward with an Alexandria facility to produce alternative sodium-ion battery components.